According to Kommersant, the plant's warehouses contain 100,000 unsold cars, and even if AvtoVAZ gets the loan, the money will only be enough to keep the company in business for two months.
On Monday, Prime Minister Putin announced VEB would receive up to $50 billion from Russia's Central Bank to help companies in trouble refinance their foreign loans. However, AvtoVAZ is seeking the loan to replenish its working capital.
The terms for the VEB loan to AvtoVAZ have yet to be specified and approved by the bank's loan committee.
The paper quotes "informed sources" as saying that the deal with VEB could be concluded next week.
Russia's financial system has been affected by a global credit crunch which started in the U.S. and quickly spread to Asia and Europe leading to record losses on Russia's financial markets, rising interest rates and a liquidity shortage.
