A loan product aimed at manufacturing protective equipment, medical facilities and medicines for the response to COVID-19 pandemic

Purpose:

Create a funding mechanism for enterprises in the Kyrgyz Republic for:

- manufacture of personal protective equipment (masks, respirators, protective overalls, gloves, shoe covers, etc.);

- production of medicines;

- manufacture or repair medical equipment that contribute to the prevention and elimination of the coronavirus infection(COVID-19).

Maximum limit of the loan facility for direct financing projects and partner banks:

Equivalent of up to 3,000,000 US dollars

Loan availability period:

The period during which the Borrowers are entitled to apply for funding - until 01.10.2020

Target borrowers:

Commercial companies of various organizational and legal forms that are residents of the Kyrgyz Republic and have experience in any of the following areas:

· garment-making;

· supply and marketing of materials for light industry;

· consolidation of orders and arrangement at the facilities of the garment enterprises of the Kyrgyz Republic;

· production of hygiene articles;

· production of medicine;

· manufacture or repair of medical equipment.

Targeted loan utilization:

Funds can be allocated exclusively to:

· purchase of raw materials for the personal protective equipment production;

· purchase of raw materials for the medicines production;

· purchase of spare parts and components for the manufacture or repair of medical equipment;

· payment of logistics costs.

Refinancing component:

N/A

Currency:

Kyrgyz som/US dollars

Funding amount:

from 100 thousand US dollars (equivalent in Kyrgyz soms)

Funding terms:

up to 24 months

Exemption period for the loan principal repayment:

up to 6 months

Interest rate in Kyrgyz soms:

6% per annum

Interest rate in US dollars:

2% per annum

Collateral security requirements in the framework of the RKDF direct funding:

The following can be provided as a collateral security:

· real estate;

· movable property (equipment, machinery);

· monetary resources (letter of credit coverage);

· "Guarantee Fund" OJSC Security;

· Inventory (inventory in the form of procured raw materials and finished products) and the right to claim under the contract are not considered in the collateral security.

Collateral security coverage ratio must be at least 50% of the loan amount.

Additional requirements for applicants in the framework of the RKDF direct funding

Terms of the transaction within the framework of the RKDF direct funding

· The initiator or guarantor has been operating as a legal entity for at least 1 year;

· Loan funds can be allocated solely to the purchase of raw materials necessary for the personal protective equipment and medicine production as well as the manufacture or repair of medical equipment.  Raw materials should meet the national, international standards or the requirements of the Customs Union;

· The initiator has firm contracts or agreements of intent for the supply of products made from the procured raw materials, or has experience of similar products distribution during the last calendar year;

· The initiator has access (property, lease or services contract) to the production facilities sufficient to process the procured quantity of raw materials during the term of the loan;

· The initiator has to contribute own funds in the amount of at least 15% of the attracted RKDF tranche;

· In case of raw materials/spare parts/components purchase outside the Kyrgyz Republic, it is recommended to use the letter of credit as the form of payment. The condition for cashing a letter of credit is the delivery of raw materials/spare parts/components to the territory of the Kyrgyz Republic and receipt the originals of all accompanying documentation (for example, consignment, customs declaration, invoice, certificate of conformity, certificate of origin, etc.).