International Desk
Меню

The program to support small and medium-sized enterprises

The program to support small and medium-sized enterprises in the manufacturing industry

The proposed terms of financing of the Borrower under the Program of conditional placement of funds of the National Fund of the Republic of Kazakhstan by funding of second-tier banks through EDF Damu JSC for lending of SMEs in the manufacturing industry and services sector relating to maintenance of manufacturing industry:

Borrower:

Small and medium-sized enterprise as defined in accordance with the legislation of the Republic of Kazakhstan that implements the project in the manufacturing sector according to the list of priority sectors of CCEA, and in services sector relating to maintenance of manufacturing industry in accordance with the CCEA list. The annual average income should not exceed KZT 6, 363, 000, 000,00 (six billion three hundred sixty three million), and the average number of employees must not exceed 250 people.

Loan amount:

up to KZT 1,850,000,000 (one billion eight hundred fifty million)

Loan currency:

KZT

Interest rate:

Not more than 6% (six per cent) per annum

Loan term:

  • Up to 120 (one hundred twenty) months – for investment purposes (acquisition of new, creation and modernization of fixed assets);
  • Up to 60 (sixty) months – for working capital financing.

Availability period:

not more than one (1) year

Purpose:

 

  • for investment purposes to the Borrowers implementing projects in the manufacturing industry;
  • for working capital financing to the Borrowers;
  • for refinancing of loans (provided that they are issued at least 1 year prior to filing an application for refinancing to the Bank).

Loans for working capital financing are not granted to the Borrower implementing the project in services sector relating to manufacturing industry.

Prohibited:

  1.  the client may not be the participant of the Program, if he/she:              
    • implements project envisaging release of excisable goods;

    •  

      has founders who are national managing holdings, national holdings, national companies and organizations with fifty or more per cent of shares (participatory interest in the authorised capital) of which directly or indirectly belong to the state, national managing holding, national holding, national company, as well as non-profit organisations;

       

  2. financing of the Borrower with negative credit history as defined by internal regulations of the Bank;
  3. financing of the Borrower with overdue debt on taxes and other compulsory payments to the budget, as well as overdue debt to the Bank lasting more than 15 calendar days within 6 (six) months prior to the funding date;
  4. financing of the Borrower for the following purposes:
    • participation in authorized capitals of legal entities;
    • refund of previously incurred expenses;
    • acquisition of fixed assets, assets from affiliated / related companies / persons;
  5. financing of the Borrowers received loan (excluding repaid loan) in the framework of the Joint Action Plan of the Government of the Republic of Kazakhstan and the National Bank of the Republic of Kazakhstan for financing of businesses approved by the Decree of the Government of the Republic of Kazakhstan dated  December 5, 2014 №1276;
  6. the borrower uses the loan funds received under the program only in non-cash from. In case of violation of the condition by the borrower, it will be considered as improper use of the loan by the borrower;
  7. withdrawal of fees, charges and/or other payments associated with the Borrower's loan, excluding fees, charges and/or other payments levied by reason of breach of the Borrower's obligations under the loan (as agreed by Fund);
  8. financing of the Borrowers from the moment of whose state registration there have been passed less than six months (except for cases of reorganization of operating enterprises);
  9. financing of the Borrowers having in the second-tier banks an overdue loan debt over 90 calendar days at the time of loan application for financing according to data of credit bureau;
  10. financing of several affiliated Borrowers for implementation of one business project for the total amount exceeding KZT 1 850 000 000 (one billion eight hundred fifty million). One business project is a combination of two or more projects that meet in total the following criteria: 

    a) project is implemented in the territory of one object; 
    b) activities are carried out in the framework of one subclass of the CCEA; 
    c) there are financial flows between the Borrowers implementing one business project during 12 months prior to the date of an application for financing. 
  11. use by the Borrower of loan funds for payment of any treaties / contracts / agreements concluded by the Borrower, under which counteragents are the persons registered in the offshore zones provided in the order of the Minister of Finance of the Republic of Kazakhstan dated  February 10, 2010 No. 52;  
  12. granting the loans to the Borrowers for the purposes of acquisition/construction of the non-core assets which are not directly participating in a production cycle, including cars, except for floor spaces for sale of own production only manufactured by LSE (large-sized entity) and warehouse for the storage of own production, raw materials and materials necessary for production, and also floor spaces for sale of own production only of the end-use borrower. The meaning of the car is defined according to the Law of the  Republic of Kazakhstan dated 04.07.2003 No. 476-II "About motor transport";
  13. financing of the Borrowers who are registered in the offshore zones specified in the order of the Minister of Finance of the Republic of Kazakhstan dated February 10, 2010 No. 52 and also whose participants/shareholders are registered in offshore zones;
  14. granting the loans to the Borrowers directed to acquisition of property/assets subsequently issued in the name of the third persons, including directed to construction of object on the land plot issued in the name of the third person , except for construction on the land plot which is in state ownership;
  15. granting the loans to the Borrowers for the purposes of acquisition/construction of real estate and/or other assets for the subsequent lease / free use;
  16. withdrawal of fees, charges and (or) other payments associated with the Borrower's loan, except for the fees, charges and (or) other payments levied by reason of breach of the Borrower's obligations under the loan.

Borrower obligations 

Borrower is obliged:

-  to use loan funds only in a non-cash form of calculation;

- not to allocate loan funds for payment of sham or fraudulent transactions. The fact of sham nature or fraudulency is established by a court decision;

- to use a loan within 6 (six) months from the date of transfer of a loan to the account of the end-use borrower, if other term of acquisition of goods / works / services is not provided by the relevant contract concluded by the end-use borrower with counteragent;

- in case of cancellation by the borrower of the asset purchase and sale transaction or alienation of the asset acquired at the expense of loan funds, the borrower is obliged to notify in writing the Bank within 3 (three) business days after such cancellation / alienation. This term has to be enshrined in the relevant bank loan contract. In case of the direction of the written requirement of KDB JSC, the Borrower is obliged to repay a loan prior to maturity in the manner and within the terms specified in the Fund requirements;

- to issue consent to State Revenues Committee of  the Ministry of Finance of the Republic of Kazakhstan to providing data, being tax secret, concerning activity of the borrower as follows:


а) for economic partnership, joint-stock company, data about:

  • cumulative annual income with adjustments;
  • expenses on sold goods (works, services);
  • expenses on accrued income of employees and other payments to individuals;
  • income from foreign sources;
  • net income;
  • number of employees (people);
  • amounts of tax payments (including expenses on corporate income tax, value added tax, social tax, individual income tax).

Restriction

In case if LSE has been previously financed within the Decree of the Government No. 1276 dated 05.12.2014 and No. 124 dated 11.03.2015, the total amount of outstanding balance of the loan provided within the Decree of the Government No. 1276 dated 05.12.2014 and Joint action plan of the Government of the Republic of Kazakhstan and National Bank of the Republic of Kazakhstan on business entities financing  No. 124 dated 11.03.2015 should not exceed KZT 5 000 000 000 (Five billion).

projects of the Borrowers rendering services to the companies which are carrying out activity in manufacturing industry (according to the list specified in the Annex No. 3 to the present memo) are allowed to financing. At the same time, the annual revenue of the Borrower from sale of services, to the provided to companies of manufacturing industry, should be not less than 50% of the total amount of annual revenue.

 

Good to know

Share


Almaty