BAKU, Azerbaijan, Apr.20
By Nargiz Sadikhova - Trend:
Development Bank of Kazakhstan (DBK) has approved the anti-crisis plan within which loans for projects financed in country’s national currency (tenge) will be restructured, Trend reports with reference to DBK’s parent company - Baiterek National Management Holding.
The Baiterek Holding said that the holding and its subsidiaries are taking a number of measures to support entrepreneurs who have faced difficulties during a state of emergency in the country.
Thus, DBK’s loans restructuration implies a change in the repayment schedule of the main debt and interest, an increase in loan terms, while maintaining the current interest rate. For projects funded in foreign currency, the possibility of converting a loan, subject to the provision of concessional funding from the government, as well as the transfer of payments will be considered.
In addition, a pool of projects has been formed that requires taking necessary measures in the case of an increase in the negative impact of external factors and requiring enhanced monitoring. In addition, in order to reduce the requirements for collateral for funded projects, DBK is amending its collateral policy and other internal acts.
Financing projects using new financing tools also became available.
“We are talking about attracting second-tier banks (STBs) to co-finance market investment projects, as well as syndicated financing of DBK investment projects in conjunction with STBs and other lenders. At the same time, DBK will participate as an organizing bank,” the report said.
In turn, Damu Entrepreneurship Development Fund has supported 111 projects in the amount of the loan 4.2 billion tenge ($9.9 million) as of April 15 this year. The amount of guarantees provided amounts to 1.6 billion tenge ($3.8 million). The Fund agreed to provide restructuring for guarantee projects for 2,010 projects in the amount of loans worth 58.5 billion tenge ($136.6 million), the amount of guarantees is 26.3 billion tenge ($61.4 million).
Under the subsidy instrument, 245 new projects were supported in the amount of loans of 35.4 billion tenge ($82.6 million). The fund agreed to provide restructuring for 1,603 subsidy projects in the amount of 121.9 billion tenge ($284.6 million).
In addition, the fund switched to a simplified process for considering applications for project restructuring. Thus, currently one-time decisions are being made to amend the existing conditions for financing projects under state programs on subsidizing and guaranteeing instruments.
On the subsidization within the framework of the Business Roadmap-2025 state program, the period for consideration of applications for restructuring was reduced from five to one working day. After the emergency period is lifted, credit organizations will need to provide a pool of additional agreements to subsidy agreements for borrowers who have undergone restructuring.
On guaranteeing, the period for consideration of applications for restructuring is also reduced from five days and is carried out within six working hours, without analyzing the financial statements of entrepreneurs, compiling monitoring reports and considering them in an authorized body of the Damu Fund.
---
Follow the author on twitter: @nargiz_sadikh