A grace period of up to six months for budget loans

In order to reduce the negative impact on economic and social stability due to the current situation, the government of the Kyrgyz Republic adopted an order, which provides for revising the conditions for repayment of loans. This was reported on the website of the Ministry of Finance of the Kyrgyz Republic.

Thus, the State Mortgage Company, commercial banks and non-bank financial and credit organizations registered in Kyrgyzstan were recommended to revise the conditions for repayment of loans issued under the implementation of state programs, in particular:

  • revise the terms of payments on loans, granting a grace period for payments for a period of at least three months;
  • not to levy or charge commissions and other payments related to the revision of the terms of loan agreements;
  • not to impose or levy penalties, including forfeit (fines/penalties), from borrowers for failure to fulfill / improper fulfillment of obligations under the loan agreements.

In addition, the Ministry of Finance, in agreement with the Jogorku Kenesh, was recommended to revise the following conditions for the return of budget loans:

  • borrowers who have completely suspended their financial and economic activities due to the emergency or emergency regime, on the basis of the submitted supporting documents, to capitalize payments due for the period of the emergency or emergency regime, with a corresponding prolongation of the terms of these payments at the end of the debt repayment period without accruing interest;
  • borrowers whose financial and economic activities have not been suspended, but the emergency or emergency regime indirectly affected their financial and economic activities (changes in financial flows, decreased sales of products, insufficient receipt of payments from subscribers and sub-borrowers), on the basis of supporting documents, provide a deferral for payments for up to six months. At the same time, determine that deferred payments are repaid within 12 months from the date of expiration of the deferred payment;
  • financial sanctions (forfeit) for the period of the emergency are not charged.