Purpose of loan
Funds necessary for the purchase of raw materials, components, spare parts in the framework of the investment projects funded under the target programs of the RKDF through Commercial Banks (hereinafter referred to as the Partner Bank) of the Kyrgyz Republic.
Small and medium-sized businesses (hereinafter referred to as SMEs) financed under the target programs of the RKDF through the CFI of the Kyrgyz Republic, that meet the following qualification requirements in the framework of EDB agreement:
1. Legal entities and individual entrepreneurs registered in accordance with the legislation of the Kyrgyz Republic and operating in the territory of the Kyrgyz Republic;
2. The borrower must have all the necessary Permits provided for by the legislation of the Kyrgyz Republic to implement the project;
3. The Borrower must meet the RKDF and CFI requirements that regulate the investment and lending activities of the RKDF, the internal procedures of the CFI;
4. Projects must comply with the legislation of the Kyrgyz Republic on environmental protection and ecological requirements; as well as on labor relations regulation, in particular, issues of employment of under-age persons and youth, discrimination in the field of labor and forced labor.
Commercial Banks of the Kyrgyz Republic that meet the criteria specified in the Regulation “On targeted funding of commercial banks by the RKDF”.
A commercial bank fully assumes the SMEs loan non-repayment risk.
Framework agreement for the current assets
Not more than 24 (twenty four) months
Loan amount and currency
The maximum amount of a framework agreement is 3.0 million US dollars
The minimum amount of a framework agreement is 500 thousand US dollars
At the same time, the size of the Framework Agreement cannot exceed 50% of the investment limit provided by the Bank through the RKDF.
Loans are provided within the established limits under the SMEs targeted funding program.
The RKDF has the right at any time unilaterally to change the amount of the Framework Agreement with the obligatory writing notification of the Partner Bank.
The amendment of the Framework Agreement amount does not entail early repayment of the Borrower current obligations to the RKDF in force on the date of the Framework Agreement amendment
In tranches based on Individual Loan Agreements under the Framework Agreement.
The minimum tranche amount is 50,000 (fifty thousand) US dollars
The maximum tranche amount is 1,000,000 (one million) US dollars.
Up to 24 (twenty four) months
Loan arrangement mechanism
The RKDF signs a Framework Agreement with a Partner Bank for the current assets funding.
To receive a tranche under the Framework Agreement, a Partner Bank must provide the RKDF with a package of relevant documents (in accordance with the requirements of the EDB).
The tranche is disbursed following the EDB no-objection for each tranche
Interest rate for SMEs
In US dollars (USD): from 6М LIBOR1 + 8% per annum
Commercial partner bank has no right to charge any commissions and fees in excess of the interest rate, including cash services related to the issuance and maintenance of a loan
Partner banks must provide the RKDF with collateral that meets the criteria specified in the Regulation “On targeted funding of commercial banks by the RKDF".
Borrower own contribution
The borrower must provide own contribution in the amount of at least 20% of the project current assets amount throughout the Loan Agreement validity term. Own contribution can be expressed in monetary items or assets involved in the project implementation (project for which a loan is requested).
Loan and interest repayment by Borrower
Early loan repayment
The Partner Bank has the right for the early repayment of the loan principal (part of the loan principal) together with the interest accrued by the date of early repayment and another amounts payable subject to the written notification of the RKDF no later than 15 (fifteen) working days indicating the early payment amount and the date of payment.
In the event of the loan principal (part of the loan principal) early repayment is not carried out on the date of interest repayment, the Partner Bank shall additionally pay the RKDF an early repayment commission in the amount of 1 (one) percent of the early repayment amount.
Loan disbursement monitoring
The RKDF has the right to monitor the final beneficiaries (SMEs). The Partner Bank undertakes to provide the RKDF with reports on the targeted use of funds in accordance with the RKDF established forms.
The Partner Bank is obliged to monitor the target-oriented use of funds established by the EDB requirements.
1 Libor (Eng. London Interbank Offered Rate) - weighted average interest rate on interbank loans provided by banks operating in the London interbank market with the offer of funds in different currencies and for different periods - from one day to 12 months