Commissions of Guarantee Fund since March 1, 2017 are 2,5 % per annum on guarantee amount

Commissions of Guarantee Fund since March 1, 2017 are 2,5 % per annum on guarantee amount

Chairman of the Board of recently created Guarantee Fund Malik Abakirov during a press conference reported that the Fund from March 2017 increases commissions up to 2,5 % per annum on guarantee amount. He told about procedure for guarantee issue as well.

“Entrepreneurs address banks and if they need a loan in the amount of KGS 1 million but collateral is insufficient, then with good loan history and business plan, the bank together with entrepreneur can address the Fund. We, considering the same criteria, can provide the borrower with that amount which is required. Meanwhile, there are commissions of the Fund. Until March 1, 2017 they constitute 1,5% and after March 1, 2017 they will constitute 2,5% per annum on amount”, – said Abakirov.

He noted that the Board of the Fund established minimum and maximum thresholds for providing guarantees. “Minimum loan amount must be not less than KGS 300 thousand. As for minimum threshold, it is 10% of the fund capital, i.e. KGS 28,2 million. But considering that the Fund has recently started its activity, we have established maximum threshold in the amount of KGS 7 million. However, in future, for good and promising projects we may extend maximum threshold and we will consider each case separately”, – he said.

We recall that Guarantee Fund was created on November 1, 2017. The main capital of the Fund to date constitutes KGS 282 million, USD 1 million was allocated from the republican budget, USD 3 million is granted by Asian Development Bank.

Source: http://kant.kg/2017-02-21/komissionnyie-garantiynogo-fonda-s-1-marta-sostavyat-2-5-godovyih-ot-summyi-garantii