This Program is subject to the terms and requirements of the Regulation "On Targeted Financing of Commercial Banks by the Russian-Kyrgyz Development Fund"
Economic entities of the Kyrgyz Republic operating and registered in the Kyrgyz Republic as private entrepreneurs, farms, as well as commercial organizations and enterprises.
of financial leasing
Purchase of agricultural machinery and equipment, as well as the processing, industrial, food and medical equipment, including:
As part of the Program, it is possible to purchase the used machinery and equipment, provided that the amount of depreciation of the machinery and equipment is less than 30% of the cost of the equipment and the useful period of service exceeds the lease term.
Commercial banks of the Kyrgyz Republic that meet the criteria specified in the Regulation "On Targeted Financing of Commercial Banks by RKDF"
Specifics of the credit line for funding financial leasing transactions
The Fund provides financing to commercial banks (Partner Banks) and is not a party to the financial leasing operation.
Partner Bank acts as Lessor and fully bears the risk of non-repayment of leasing funds by Lessees and responsibility for the timely and full repayment of leasing funds to the Fund.
Currency of the credit line
Credit funds are provided by the Fund to partner banks in KGS and USD, and can also be provided in Russian rubles if the Fund has the appropriate resources.
The terms of credit
line for Partner Bank
In KGS - up to 7 years;
In USD - up to 7 years.
When financing in Russian Rubles, the terms will be set in case the Fund has available resources.
1-year grace period is provided for repayment of the principal amount for each tranche of the credit line.
Issuing a credit line to Partner Bank
The Fund provides financing to Partner Bank on the agreed terms in tranches within the established limit. Partner Bank must implement the tranche received from the Fund within 30 days and provide the Fund with a report on the intended use of this tranche and return the unused balance of the tranche to the Fund. The next tranche is disbursed only after the Fund has received a satisfactory report on the use of the previous tranche from Partner Bank. The minimum amount of one tranche is $50,000 (or its equivalent in another currency), the maximum amount of one tranche is $1 mln (or its equivalent in another currency).
The term of the implementation of the credit line by Partner Bank
12 months from the date of signing the credit agreement.
Interest rate for Lessees
The interest rate on leasing operations provided by Partner Bank to Lessees shall not exceed the interest rate on the credit line approved by the Fund for Partner Bank by more than 400 basis points (4 percentage points).
Lessor shall not charge the Lessee any additional commissions or fees.
Repayment of interest and principal by Partner Bank
Repayment of principal - by equal semi-annual installments after the expiry of the grace period for repayment of the principal.
Repayment of interest - by quarterly installments.
Lessees are entitled to early repayment of leasing funds without any penalties.
Partner Banks are entitled to early repayment of the credit line to the Fund without any penalties.
Co-financing by Lessees
The amount of Lessee’s own contribution must be at least 10% of the value of the leased item.
Lessee's own contribution is made to the bank account in monetary terms, which will later be used as payment to the supplier of the leased item.
Lessee shall make a separate contribution from its own funds to pay for the direct costs of customs clearance and paperwork, and the funds to pay the insurance for the entire lease period.
Collateral for agricultural machinery, equipment, breeding cattle
The leased item is not subject to subleasing by Lessee.
Collateral provided by Partner Bank to the Fund
Partner Banks must provide the Fund with collateral that meets the criteria specified in the "Regulation on Targeted Financing of Commercial Banks by RKDF"
Penalties and other requirements for Partner Bank
Penalties for Lessee
In the event of late payment of the lease payments, penalties are accrued starting from the 6th day of the formation of an overdue debt according to the repayment schedule, in the amount according to the current tariffs of Partner Bank
Monitoring of the credit line
The Fund has the right to monitor the end recipients of SMEs - Lessees. Partner Bank shall submit reports to the Fund on the intended use of the Fund's financing in accordance with the established forms:
Activities prohibited for financing
Production of tobacco and tobacco products, alcoholic beverages, weapons, drugs except for medicinal products, gambling, forced and child labor, and other legally prohibited activities.
Maximum amount of financing for one Lessee
The maximum amount of financing provided by Partner Bank to one Lessee shall not exceed $1 (one) million or the equivalent in another currency.
Additional requirements for leasing entities:
The term of operation is at least 6 months.