RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of September 9, 2022 No. 509

About introduction of amendments to the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About approval of the Procedure for provision of the guarantee to subjects of national economy" of June 20, 2022 No. 326

For the purpose of effective realization of the crisis response measures aimed at providing homeland, economic and food security of the country according to articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Bring in the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About approval of the Procedure for provision of the guarantee to subjects of national economy" of June 20, 2022 No. 326 the following changes:

The subitem 1 of Item 5 to state 1) in the following edition:

"1) annually to provide means for realization of procedure for granting of the guarantee to subjects of national economy in the republican budget for the corresponding year;";

To add 2) with Item 5-1 of the following content:

"5-1. Recommend to financial credit institutions to be guided by Procedure for provision of the guarantee to the subjects of national economy approved by this resolution.";

The Procedure for provision of the guarantee to subjects of national economy approved by the above-stated resolution to state 3) in edition according to appendix to this resolution.

2. This resolution becomes effective from the date of official publication.

Appendix

"Appendix

Procedure for provision of the guarantee to subjects of national economy

1. General provisions

1. This Procedure regulates the procedure of provision of the guarantee by Financial and credit fund under the Ministry of Finance of the Kyrgyz Republic (further - Fund) to subjects of national economy.

2. In this Procedure the following determinations are used:

1) homeland security is the guaranteed condition of security of the personality, society, state, and also its sovereignty, territorial integrity and independence of external and internal threats;

2) authorized state body on forecasting and budget implementation - the central executive body authorized by the Cabinet of Ministers of the Kyrgyz Republic on implementation of development of state policy, coordination regulation and accomplishment of executive functions in budget and financial spheres;

3) authorized state body on economic forecasting - the central executive body authorized by the Cabinet of Ministers of the Kyrgyz Republic on implementation of development and realization of single state policy in the field of economic development and the tax sphere;

4) the guarantee - the obligation of Fund to be responsible on behalf of authorized state body on forecasting and budget implementation for the obligation fulfillment of subjects of national economy before the financial and credit, international and foreign organizations (further - creditors) on the credit and the bank guarantee provided according to the decision of the Cabinet of Ministers of the Kyrgyz Republic;

5) food security - state of the economy of the Kyrgyz Republic in case of which food independence of the republic is provided and is guaranteed physical and economic availability of food to the population according to the established minimum regulations of consumption of food;

6) economic safety is condition of security of national economy from external and internal threats, long-term condition of stability of economic system, and also capability to economic development which provides possibility of satisfaction and expansion of needs of subjects of economic activity, capability to support worthy level of living.

2. Conditions of provision of the guarantee

3. The decision on provision of the guarantee to subjects of national economy (further - subjects) is accepted by the Cabinet of Ministers of the Kyrgyz Republic.

4. The authorized state body on economic forecasting initiates the draft decision of the Cabinet of Ministers of the Kyrgyz Republic about provision of the guarantee. Subjects shall correspond to the following criteria:

1) residents of the Kyrgyz Republic;

2) at least 5 (five) years performing activities and having positive result of financial and economic activities for the last 3 (three) years and also showing reliability and stability;

3) the countries having strategic importance for economic activity, food and homeland security of the country;

4) lack of overdue debt on tax payment and other obligatory payments in the budget, and also on budget credits;

5) the subitem 2 presents of Item are not applied in cases of need of ensuring economic, food and national security of the country to subjects where 50 and more percent of share in the authorized capital belong to the state.

5. For initiation of the decision of the Cabinet of Ministers of the Kyrgyz Republic on provision of the guarantee subjects shall provide to authorized state body on economic forecasting the following documents:

1) the copies of registration and constituent documents certified by seal (the charter, the registration certificate, the patent, the foundation agreement);

2) passport copies of the head, order on position assignment;

3) financial statements for the last three years.

6. The guarantee is provided after obtaining by Fund of the approved conclusion of the creditor about issuance of credit following the results of solvency analysis of the subject.

7. Creditors bear responsibility for carrying out financial analysis of the subject.

8. The guarantee is provided for providing obligations completely or in the part which is not becoming covered by mortgage providing on the credit and profitability.

9. The guarantee according to obligations is provided on effective period of the credit agreement.

10. For provision of the guarantee in providing obligations according to the credit agreement and the bank guarantee the one-time fee in the following sizes is charged:

1) one percent from the guarantee amount if the size of the obligation provided with the guarantee constitutes more than one billion som;

2) two percent from the guarantee amount if the size of the obligation provided with the guarantee constitutes up to one billion som.

11. For inappropriate use of credit resources and provision of false information and documents from subjects the penalty in the amount of 5 percent of the amount of the guarantee according to the guarantee agreement is imposed.

12. All expenses connected with execution of the guarantee agreement are assigned to subject.

13. In case of obligation fulfillment by the subject, in first-priority procedure the obligations of Fund provided in the form of the guarantee are exempted.

14. Responsibility of Fund in case of non-execution or improper execution by the subject of the obligations provided with the guarantee is determined by the credit agreement according to the civil legislation of the Kyrgyz Republic and in the amount of the guarantee amount.

15. The obligation of Fund for execution of the guarantee is performed at the expense of the means approved in the republican budget.

16. On settlement accounts and into the special account of Fund it cannot be seized or is turned collection.

17. The obligation of Fund for obligation fulfillment of the subject comes in case of violation by the subject of completion dates of obligations. At the same time the creditor in writing notifies Fund on the breach of agreement allowed by the subject.

18. The obligation of Fund specified in Item 17 of this Procedure arises after provision of the certified extract according to the loan account of the subject and realization by the creditor of all measures for debt collection according to the procedure, provided by agreements and the legislation of the Kyrgyz Republic.

19. After execution of obligations of the subject by Fund, according to the procedure of regress pass all rights of the creditor to Fund, in volume of the fulfilled obligations from Fund. At the same time the creditor in three-day time from the date of execution of agreement obligations of the guarantee by Fund shall contribute to Fund the documents certifying rights to claim against the subject - to the debtor.

20. The fund according to the procedure of regress collects from the subject of the amount, paid by Fund to the creditor in obligation fulfillment according to the guarantee agreement, according to the civil legislation of the Kyrgyz Republic.

3. Monitoring of activities of the subject within the provided guarantee

21. The fund has the right to carry out monitoring of activities of the subject within the signed guarantee agreement.

22. The subject shall provide all required information necessary for the qualitative and objective analysis of its activities on the first demand of Fund.

4. Sources of forming of means for provision of the guarantee

23. Sources of forming of means for provision of the guarantee are:

1) means of the republican budget in the amount of no more than one percent from amount of total expenses (without means of provision of the guarantee);

2) the means accumulated on the accumulation accounts of the Central Treasury of the Ministry of Finance of the Kyrgyz Republic opened in National Bank of the Kyrgyz Republic, the order which does not require the consent of donors and with the consent of donors.

5. Procedure for forming of means for provision of the guarantee

24. Means for provision of the guarantee to subjects are provided in the Law of the Kyrgyz Republic on the republican budget for the corresponding year.

25. By provision of the guarantee at the expense of means on the accumulation accounts of the Central Treasury of the Ministry of Finance of the Kyrgyz Republic opened in National Bank of the Kyrgyz Republic, the specified means are placed on deposit accounts of Fund in commercial banks.

Means on the accumulation accounts of the Central Treasury of the Ministry of Finance of the Kyrgyz Republic opened in National Bank of the Kyrgyz Republic on which the consent of donors is required are placed on deposit accounts of Fund in commercial banks after approval of donors in accordance with the established procedure.

26. The commission for provision of the guarantee and interest income of the placed deposits are transferred into the special account of Fund.

27. The penalties specified in Item 11 of this Procedure are transferred into the republican budget according to the budget legislation of the Kyrgyz Republic.".

 

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