The government recommended that the terms of repayment of issued loans within the framework of state programs be reviewed
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- Category: Digest
The Government of the Kyrgyz Republic recommended that financial institutions review the conditions for repayment of issued loans as part of the implementation of state programs. The corresponding decision was signed by the Prime Minister of the Kyrgyz Republic Mukhammedkalyi Abylgaziev.
As part of the decision, OJSC “State Mortgage Company, commercial banks and non-bank financial and credit organizations registered in the Kyrgyz Republic were recommended to review the conditions for the repayment of loans issued under government programs.
In order to support borrowers who are having difficulty repaying loan debts, including budget loans, it is recommended that:
- Revise the terms of payments on loans, providing a deferment of payments, for a period of at least three months;
- Do not charge or levy commissions and other payments related to the revision of the terms of loan agreements;
- Do not impose or levy penalties, including forfeit (fine/penalty), from borrowers or failure to fulfill / improper performance of obligations stipulated by loan agreements.
In addition, the Ministry of Finance of the Kyrgyz Republic, in agreement with the Jogorku Kenesh of the Kyrgyz Republic, was instructed to review the following conditions for the repayment of budget loans:
– to borrowers who have completely suspended their financial and economic activities in connection with the introduction of an emergency or state of emergency, based on the supporting documents submitted by the borrowers, to capitalize payments that fall during the period of the emergency with a corresponding extension of the terms of these payments at the end of the debt repayment period without interest;
– to borrowers whose financial and economic activities are not suspended, while the introduction of an emergency or emergency regime indirectly affected their financial and economic activities in the direction of deterioration, on the basis of supporting documents provide a deferral of payments for up to six months. At the same time, to determine that deferred payments are repaid within 12 months from the date the deferral expires;
– financial sanctions (forfeit) for the period of the emergency regime, and the state of emergency are not charged.