The Board of the Russian-Kyrgyz Development Fund (RKDF) approved a package of anti-crisis measures that will allow the fund’s borrowers to reduce the burden of repaying the principal amount of the loan within 6-12 months. Press service of the RKDF reported.
It is noted that it was decided to provide a deferral from 6 to 12 months for payment of principal amount of loans in the U.S. dollars. In this case, the total term of the loan will be increased. So borrowers will receive a grace period that will allow them to adapt to new economic conditions.
«Enterprises that ensure food security in the country will receive a maximum deferral of up to 12 months, and RKDF support will be directed to them first of all. In some cases, in order to receive funding under preferential programs of the Cabinet of Ministers, the Fund is ready to consider the possibility of releasing part of the collateral, subject to meeting of the fund’s minimum requirements for collateral,» the RKDF emphasized.
Small and medium-sized businesses can count on a deferment of the principal amount of dollar loans for up to 6 months through their bank. A financial institution must, by June 30, 2022, apply to the RKDF with an application for a deferment. Based on the appeal, the fund will prepare an additional agreement on financing. In turn, banks should provide their clients financed by the RKDF with similar conditions for prolongation of loans.
«The aim of the fund is to support a specific entrepreneur, not a bank. The temporary easing of collateral requirements applies to all categories of support,» the statement says.
For the period until December 31, 2022, the following coefficients will be applied by the RKDF:
- Collateral coverage by securities — not less than 80 percent;
- Collateral coverage by real estate — not less than 100 percent.
«The decision was made by the Board of the Russian-Kyrgyz Development Fund in connection with the emerging geopolitical situation, its impact on the economies of Kyrgyzstan and the countries — the main trade and economic partners, as well as due to the strong volatility in the foreign exchange market of the republic. According to the Fund, the proposed measures will allow businesses to save a significant amount that can be spent on increasing production volumes, as well as maintaining jobs in crisis,» the RKDF concluded.
