Meat cluster development through the RKDF partner MFO

In the framework of the "Microfinance through microfinance organizations of the Kyrgyz Republic” Program

Purpose:

Growth in meat production and export development within a single value chain

Target borrowers:

Small businesses - enterprises of the meat production.

· Meat producers (farmers and farms);

· Other entities participating in the meat cluster.

Target-oriented loan disbursement:

Funds can by allocated:

Investment objectives:

· Purchase of machinery and equipment;

· Construction and installation works, reconstruction and purchase of industrial facilities;

· Acquisition of breeding livestock for meat production.

Current assets funding:

· Biological raw materials purchase;

· Purchase of breeding cattle for fattening;

· Purchase of feed;

· Spare parts purchase;

· Purchase of veterinary medicines, vitamins, etc.;

· Purchase of other materials as part of an investment project.

Loan rescheduling:

In exceptional cases, a loan may include a rescheduling component. The rescheduling component, including refinancing loans from other banks, must not exceed 30% of the loan amount, and can be provided subject to the following conditions being met:

1. the rescheduled loan was used for investment purposes and is associated with the ongoing project;

2. the target-oriented disbursement of the rescheduled loan is confirmed by the relevant documents for the transaction (account statements, contracts, invoices, customs declaration, waybill, certificate of completion, certificate of acceptance);

3. rescheduled loan availability period is at least 6 months at the time of the application review;

4. no overdue payments on the rescheduled loan principal and interest;

5. the absence of revolving debt rescheduling due to a worsening financial situation or debt servicing (loan principal and interest repayment), unless otherwise decided by the RKDF Board.

At the same time, the total amount of all loans with refunding should not exceed 30% of the total funding limit within this program.

Refunding of loans provided by financial institutions other than banks is prohibited.

Borrower own contribution:

Investment loans - at least 15% of the project cost.

Funding currency:

Kyrgyz som

Funding amount:

up to 1 million Kyrgyz soms

Loan term

· Investment purpose – up to 5 years;

· Purchase of breeding cattle – up to 5 years;

· Current assets funding - up to 2 years.

Exemption period

Investment loan, including breeding cattle purchase - up to 12 months

Current assets funding - up to 3 months

Interest rate:

Kyrgyz som - 14% per annum

Requirements for the end borrower:

Sales contract with a processor accepted by RKFR

Collateral security requirements for the end borrower:

Requirements in accordance with the regulations of MFO

Collateral security requirements for MFO:

In accordance with the RKDF Regulation “On targeted funding of microfinance organizations by the Russian-Kyrgyz Development Fund”.

Application of the norms of "Microfinance through microfinance organizations of the Kyrgyz Republic" Program:

In all aspects not directly regulated by this Product, the norms of the RKDF Program "Microfinance through microfinance organizations of the Kyrgyz Republic" are subject to application.