Horticulture cluster development through the RKDF Commercial partner banks

In the framework of "Lending to small and medium-sized businesses through Commercial Banks" Program


Growth in horticulture production and increase of the export potential of the Kyrgyz Republic in this area.

Target borrowers:

Small and medium-sized businesses of various organizational and legal forms, residents of the Kyrgyz Republic with an experience in any of the following areas:

- horticulture processing;

- transportation, storage, distribution or sale of horticulture.

- processing of land used for horticulture production and perennial plantations of crop production (including machine-tractor stations);

- seed growing and cultivation of fruit nurseries;

- growing fruit and vegetable products;

- production of organic and mineral fertilizers.

- production of succulent feed.

Target-oriented loan disbursement:

Investment objectives:

  • Purchase of equipment, machinery and units for the implementation of projects of technical re-equipment, modernization and expansion of existing production or creation of a new production, including indirect costs under the relevant contracts (costs of paying customs duties, taxes and fees; costs of engineering, installation supervision, construction, installation and commissioning; costs of spare parts; costs of personnel training, involvement of specialized independent experts, etc.);
  • Execution of construction and installation work related to the construction, reconstruction or technical re-equipment of facilities (including production facilities, engineering and transport infrastructure, greenhouses, trellis systems and irrigation facilities);
  • Funding of expenses for the acquisition of real estate objects (land plots, buildings and structures for industrial and/or agricultural purposes).

Current assets funding:

  • Purchase of raw materials, seeds, POL and fertilizers;
  • Purchase of spare parts for production equipment, agricultural machinery and transport;
  • Purchase of materials (including containers for transportation);
  • Payment of logistics costs.

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:

For investment loans - at least 15% of the project cost.

Funding currency:

· Kyrgyz som;

· U.S. dollars.

Funding amount:

up to 1 million US dollars (equivalent in Kyrgyz soms)

Loan term:

Investment purpose - up to 7 years

Current assets funding - up to 3 years

Exemption period:

Investment loan - up to 24 months

Current assets funding - up to 6 months

Interest rate:

Kyrgyz som - 9% per annum.

US dollars - 5% per annum.

Collateral security requirements for the end borrower:

Requirements in accordance with the regulations of a Commercial Bank

Guarantee of OJSC "Guarantee Fund".

Collateral security for the Commercial Banks:

In accordance with the requirements of the RKDF "Lending to small and medium-sized businesses through Commercial Banks" Program and the Regulations “On targeted funding of Commercial Banks”

Application of the norms of "Lending to small and medium-sized businesses through Commercial Banks” Program:

In all aspects not directly regulated by this Product, the norms of the RKDF Program "Lending to small and medium-sized businesses through Commercial Banks" are subject to application.