Russian-Kyrgyz Development Foundation approved financing of 7,9 billion som in kind of loans to 333 enterprises

To reach its goals the Foundation is developing the appropriate programs and products. Support of small-and medium-scale business (SME0 is one of key directions of the Foundation business. Financing is implemented through partner banks. Of total 7,9 billion som for SME support 4,9 billion was already approved. This lending program objective is facilitating enterprises' access to financial resources. Minimal annual interest rate is 12% in national currency, annual interest rate 5% in USD, lending period up to 5 years, grace period up to 12 months.

Partner banks business

Foundation partner banks include Aiyl Bank and RSK Bank. Upon RKDF initiative credit line in local currency was opened through financial institutions. This solution aimed to support SME entities interested in loans in national currency.

Of total funds allocated by Foundation 1,8 billion som was successfully explored presently by Aiyl Bank and RSK Bank. After successful exploration of lending recourses the foundation made decision to disburse additional funds in amount of $10 million som.

The Foundation is working on addition of partner banks to the list. In June loan agreements were signed between RKDF and Halyk Bank Kyrgyzstan for total amount of $3,9 million and Bank of Asia for $1,4 million.

The funds allocated to partner bank should be disbursed in kind of loans for the following businesses:

- purchasing and renovation of equipment;

- introduction of new technology;

- modernizations of assets.

New product- Leasing.

Considering business demand RKDF developed the new products — Financing of Leasing Operations. This will provide opportunity to lease agricultural machinery, production and other equipment under favorable conditions.

Main conditions for leaseholders:

- Interest rate in national currency – 12% per annum, in US Dollar- 5% per annum

- Term – 3-5 years, in USD — up to 7 years;

- Grace period for principal- up to 12 months.

Within this program the used machinery and equipment can be leased as well. Depreciation rate may not exceed 30% of value. Useful life period must exceed leasing term.

KRDF projects will promote lower interest rates and extension of loan period. Foundation programs are purposed to support Kyrgyzstan economic development and GDP growth in long-term perspective.

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