Leasing transactions

This Program is subject to the terms and requirements of the Regulation "On Targeted Financing of Commercial Banks by the Russian-Kyrgyz Development Fund"

Target group/


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:

  • farming equipment;
  • equipment for food and processing enterprises;
  • equipment for logistics centers (storage facilities, warehouses) for storing agricultural and finished food products;
  • equipment for sorting and packaging products;
  • equipment for sales points of agricultural and finished products;
  • special equipment for construction and mining operations;
  • special equipment for road construction;
  • medical equipment;
  • telecommunications equipment;
  • equipment for machinery manufacturing;
  • printing equipment;
  • breeding cattle;
  • vehicles for the transport of passengers and cargo;
  • other types of equipment and machines in agreement with the Fund.


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.

Partner Banks

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.

Early repayment

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

  • In case of own contribution in the amount over 30% of the value of the leasing item, the guarantee of redemption is the leasing item;
  • In case of own contribution under 30% of the value of the leasing item it is necessary to provide additional pledge property in the form of immovable property or floating charge.


The leased item is not subject to subleasing by Lessee.

Special terms

  • Various fees, service costs, tax payments and duties when registering the leased item are paid by Lessee;
  • The leasing item remains in the ownership of Lessor bank until Lessee fully repays the lease debt;
  • Lessee shall provide unhindered access to the leased asset to Lessor bank and the Fund on a permanent basis;
  • Lessee is responsible for the safety and proper use of the leased item;
  • Lessee shall comply with the supplier's requirement for warranty service of the leased item;
  • Lessee shall annually check the technical condition of the leased item at their own expense.
  • All payments under this Program must be made in a non-cash form.
  • Priority in the selection of suppliers shall always be given to the goods and services produced in the Kyrgyz Republic or the Russian Federation.

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 

  • If Partner Bank violates the target purpose, conditions and criteria for providing targeted financing, the interest rate for Partner Bank on the credit line in USD shall be increased up to 10% per annum; and on the credit line in KGS up to 20% per annum.
  • In the event of a change in the executive management (the Chairman of the Management Board and the Member of the   Board of directors in charge of lending) and/or the Chairman of the Board of Directors and/or a replacement of the main Shareholder of the Bank, Partner Bank shall notify the Fund and explain the reasons for such a change.
  • If Partner Bank violates the intended purpose, conditions and criteria for providing targeted financing, the Fund has the right to cancel the credit line and demand early repayment of the outstanding part of the credit line.

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:

  • a report on the intended use of the credit/tranche within 30 calendar days from the date of receipt of this credit/ tranche;
  • a monthly report on the targeted use of the Fund's financing by the 5th day of the month following the reporting month;
  • an annual report by the 20th day of the month following the end of the reporting year.

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.