Media: the state Duma may introduce a bill on the converted loan

© RIA Novosti / Ramil to Setdiscoverable in photobacteria of the State Duma of the Russian Federation. Archival photoMedia: the state Duma may introduce a bill on the converted loan© RIA Novosti / Ramil to Setdiscoverable the image Bank

The bill on the converted loan plan to submit to the state Duma, writes «the parliamentary newspaper» with reference to the author of the document, the Chairman of the state Duma Committee on natural resources Nikolay Nikolaev.

According to him, the bill proposes to introduce a new corporate mechanisms. Speech, in particular, the converted loan, which allows investors to convert funds provided for the development of the company, its stocks or shares at a predetermined formula at any time if the business grows or attracts the next round of investment.

It is noted that this is currently only possible with the late payment of the debt, that is, in a negative scenario of business development.

«The lack of such mechanisms in the Russian law leads to the fact that the participants in the relationship are forced to structure transactions to attract investment in the capital companies under foreign law» — are in the newspaper the words of the Deputy.

According to the author, the new legislated tools will reduce the theoretical risks of the investor and, as a consequence, will attract more players into the market.