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  • AMENDMENTS TO THE RESOLUTION ON THE APPROVAL OF THE PROJECT “AGRICULTURE FINANCING -8”

    The Government, by a resolution of March 13, 2020, amended the resolution “On approving the project “Financing of Agriculture – 8) dated February 14, 2020.

    In order to ensure food security of the Kyrgyz Republic, as well as maintain flour mills of the Kyrgyz Republic, in accordance with Articles 10 and 17 of the Constitutional Law of the Kyrgyz Republic “On the Government of the Kyrgyz Republic”, the Government of the Kyrgyz Republic decides:

    1.To make the following changes to the decree of the Government of the Kyrgyz Republic “On approval of the project “Agriculture Financing – 8” dated February 14, 2020 No. 81:

    1) Subparagraph 1 of paragraph 2 shall be supplemented with paragraphs as follows”

    “For enterprises engaged in the processing of grain and food wheat:

    – Interest rate – 3.5 percent per annum, followed by loans to these enterprises at 8 percent per annum;

    – Penalties – 7 percent per annum accrued on the amount of late payment;

    – Grace period for repayment of the principal amount debt – 8 months, repayment frequency after the end of the grace period – monthly, in equal shares;

    – Periodicity of repayment of accrued interest – monthly;

    – Repayment period – 12 months;

    – Collateral – a loan portfolio;”;

    2) within the Project “Agriculture Financing – 8” approved by the resolution:

    – In the “Project Description” section:

    Supplement The fifth paragraph after the words “(Agriculture Financing-Cluster)” with the words “Enterprises engaged in the processing of grain and food wheat”; the table should be stated in the following edition:

    Target Direction Providing state financial support to agricultural producers, food and processing enterprises in the categories “Agriculture Financing-Farmer”, “Agriculture Financing-Cluster” for the following types of agricultural products: milk, meat, wool, honey, fish, vegetables, potatoes, fruits (pome seeds, stone fruits), berries (raspberries, strawberries, currants), industrial crops (cotton, tobacco), oilseeds, beans and other crops.
    Amount and terms of lending, in KGS Amount of Credit:

    1)      “Agriculture Financing-Farmer”:

    –          Up to 150 thousand KGS, for a period of up to 18 months, financing on an unsecured basis;

    –          From 150 thousand to 1 million KGS, for a period of up to 36 months;

    2)      “Agriculture Financing-Cluster”:

    –          From 1 million to 10 million KGS, for a period of up to 36 months;

    3)      For enterprises of the food and processing industry

    –          From 1 million to 50 million KGS, for a period of up to 60 months, for the acquisition of fixed assets and up to 36 months – for working capital;

    4)      For enterprises engaged in the processing of grain and food wheat

    –          up to 10 months

    Basic conditions for obtaining a loan and category characteristics 1.      For “Agriculture Financing – Farmer”:

    – Sole farmers, including individuals;

    – Priority is given to farmers united in specialized groups (production of certain types of agricultural products), cooperatives,

    – In the livestock sector – if one of the following conditions exists;

    a.  at least 5 heads of cattle;

    b. at least 10 heads of small cattle;

    c. at least 2 horses;

    d. at least 100 birds;

    e. there are no restrictions for fish farming and bee-keeping;

    – In the crop sector – the availability of agricultural land, up to 5 hectares.

    2.  For “Agriculture Financing – Cluster”:

    – participation in cluster production system;

    – the presence of an agreement (contract) with processing enterprises, suppliers and distributors for the supply of their products.

     

    For all categories of lending in the field of crop production, the prerequisites are as follows:

    –          the presence of own or leased agricultural land, a document certifying the presence of such land (state act, certificate, lease, purchase and sale agreement, etc.);

    –          resident of the Kyrgyz Republic;

    –          proper registration of legal entities with all state bodies of the Kyrgyz Republic, including State Tax Service under the Government of the Kyrgyz Republic and the Social Fund of the Kyrgyz Republic.

     

    For all categories of lending in the livestock sector, the prerequisites are:

    –          the availability of all necessary conditions for the maintenance and breeding of farm animals, including conditions for the storage of feed in the winter;

    –          resident of the Kyrgyz Republic;

    –          registration of legal entities in an appropriate manner in all state bodies of the Kyrgyz Republic, including the State Tax Service under the Government of the Kyrgyz Republic and the Social Fund of the Kyrgyz Republic.

    Structure of Financing Funded by the Ministry of Finance of the Kyrgyz Republic and co-financed by Aiyl Bank and RSK Bank, funds are allocated for lending:

    1)      food and processing industry enterprises and “Agriculture Financing – Cluster” 800 million KGS (600 million KGS – the republican budget, 100 million KGS – co-financing of banks) in the following ratios:

    –          “Agriculture Financing-Cluster” – not more than 50%;

    –          Food and processing industry enterprises – at least 50%;

    2)      enterprises engaged in the processing of grain and food wheat – 800 million KGS (400 million KGS – the republican budget, 200 million KGS each – co-financing of banks).

    “Agriculture Financing-Farmer” category (subsidizing):

    –          livestock – at least 50%;

    –          crop production, gardening – not more than 50%.

    Final interest rate 10 percent – for “Agriculture Financing-Farmer”;

    8 percent – for “Agriculture Financing-Cluster”, involved in the processing of grain and food wheat;

    6 percent – for food and processing enterprises.

    Grace period Full exemption from payment of principal repayment:

    For the “Agriculture Financing-Farmer” category – up to 12 months;

    For enterprises engaged in the processing of grain and food wheat – up to 6 months.

     

    KYRGYZSTAN TEMPORARILY CLOSES THE BORDERS

     The Kyrgyz Government has introduced a temporary ban on the entry of foreigners. This was announced today, March 17, at a briefing by Deputy Prime Minister, Altynai Omurbekova. According to her, this will not affect cargo transportation. “Such measures are introduced by many countries of the world. We must also take such precautionary measures. There are specific producers with which the Ministry of Foreign Affairs will deal,” she said.

    The restriction will take effect from the moment of adoption. It applies to all countries. “Citizens of foreign states who are in Kyrgyzstan can leave the country. Our citizens can enter Kyrgyzstan,” she said.

    Omurbekova added, the term of the ban is not exactly described. “We assume that this could be a temporary measure for up to one month. Then it can be adjusted, depending on the situation”.

    Reference www.akipress.org

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