Efimov: bankruptcy in Moscow will be massive

the Capital’s economy recovered fairly quickly from the restrictive measures that the authorities were forced to introduce in connection with the deterioration of the epidemiological situation. Measures have been taken in time, and therefore the number of permanently closed businesses should not be significant. About it on air of TV channel “Russia 24” said Deputy mayor for economic policy and property and land relations Vladimir Yefimov.

– Mr President, we see that the Moscow economy quite rapidly opens for customers: shops, restaurants, and so on. And how much is recovering the business?

– If you talk in General about the economic recovery of the city of Moscow, we are monitoring on a daily basis two main indicators. The first is the overall business activity and turnover in trade and services. The second is the operation of our industrial enterprises. If we talk about the turnover of businesses operating in the city of Moscow, we see that the average daily turnover for the week exceeded 24 billion rubles. At the moment it is 98 percent of average daily turnover in mid-March (i.e. in the period when the restrictions we have not). But if you compare it with last year’s daily average turnover, it’s higher than the turnover of last year by 26 percent. Which suggests that the economy recovered fairly quickly from those restrictive measures which had been imposed in the city.

If we talk about the industrial enterprise, at the moment, unfortunately, not all businesses fully recover their work. In General, the workload of industrial enterprises is about 75 percent. There are very few businesses that work has not resumed yet, but the number of people employed in these enterprises does not exceed five percent of the people employed in the industry.

If we talk about nhe most affected industry, we see very high growth. Last week the turnover of the enterprises most affected sectors increased by 20 percent. Unfortunately, until he reached the pre-crisis level. But we expect given the almost final removal of restrictions on Tuesday next week a return to former indicators.

– And many you see and expect liquidations and bankruptcies of legal entities — individual entrepreneurs small and medium business?

– currently, the number of bankruptcies does not exceed average performance in the normal situation in case of liquidation of legal persons – individual entrepreneurs. I think a more accurate number we can call after a month or two. But given those figures in the opening of the economy for the turnover, I think that the number of bankruptcies should not be significant.

– it Turns out that coronavirus did not affect the situation of bankruptcy?

– I would not say that it is not affected. I would say that, respectively, liquidation and bankruptcy, subject to including support measures, which were adopted at the Federal level and at the city level, will not wear a mass character.

– In the restaurant sector, feel some incredible boom. All verandas are virtually Packed with people. You just can’t seem too quickly it all changed?

– the CPS has introduced a transparent, clear and necessary to comply with health requirements restrictions for work patios. Our regulators examine compliance first social distance between the tables and the mode of operation of the staff in the restaurants. So I’m sure that the beginning of the summer verandas will not lead to the deterioration of the epidemiological situation. If this would indeed be so, and our colleagues in the restaurant business will fully comply with these requirements, then next Tuesday we can move on to the full work of public catering enterprises.

– you Havethere’s already stats on the revenue of restaurants as long as they were allowed to work?

– speaking on the figures, we see that over the last week, the revenue of catering enterprises has reached 90 percent of the level which was before them, indeed, closing, and transition to remote delivery of food. So I am sure that with the full opening of the restaurants at the beginning of next week we will see a recovery in the earnings of these companies and likely even growth. Because, of course, the Muscovites missed the visit catering companies, restaurants and for the first time will use the services more often.

– support measures you have already said. The city authorities plan to discuss whether, at least, some new measures to support the economy?

– We are still together with colleagues from the Federal government are monitoring the situation on the application, the use of support measures that have been adopted. In particular, last week we started accepting applications from proprietors of objects of real estate for compensation paid in property taxes, property payments to the city budget. I think that also in two months it will be possible to understand the effectiveness and necessity of additional measures if such will be. While we do not plan to take any additional measures in the near future. We have prepared a plan to rebuild the economy of the city of Moscow, and now also parallel to finalizing it with the Federal plan with colleagues from the Federal government, since they must be complementary. And will follow the events that will be.