Kazakhstan's Development Bank to co-fund market investment projects
BAKU, Azerbaijan, May 14
By Nargiz Sadikhova - Trend:
Kazakhstan’s Development Bank (DBK) has individually reviewed the existing problems and potential risks for each project and formed an anti-crisis plan broken down by groups, regardless of the scope of activity, Deputy Chairman of the DBK Management Board Duman Aubakirov told Trend.
He said that during the emergency state imposed in the country and thus the developed anti-crisis plan, the DBK is offering following measures:
- DBK will restructure loans for projects financed in Kazakh national currency (tenge).
“This involves changing the repayment schedule of the main debt and interest, increasing the loan term while maintaining the current interest rate. The possibility of converting the loan for projects financed in foreign currency will be considered subject to the availability of funding, as well as the transfer of payments,” Aubakirov said.
- A pool of projects that require measures in case of increased negative influence of external factors and require enhanced monitoring has been formed.
- In order to reduce collateral requirements for funded projects, DBK made changes to its collateral policy and other internal acts.
- The possibility of financing projects with the use of new financing instruments is being considered.
“We are talking about attracting second-tier banks (STBs) to co-finance market investment projects, as well as syndicated financing of DBK investment projects together with STBs and other lenders. At the same time, DBK will participate as the Managing Bank,” Aubakirov said.
Talking the impact of the pandemic and the exchange rate of the national currency Aubakirov said that it has affected almost all sectors of the economy, to a greater or lesser extent.
“Therefore, DBK individually considered the existing problems and potential risks for each project and formed an anti-crisis plan broken down by groups, regardless of the scope of activity,” he said.
In his words, the first group includes projects that require priority actions. A Road Map has been developed for each project and DBK will assist borrowers as a lender.
The second group includes projects that require activities and enhanced monitoring. This pool is also under close attention and is regularly monitored by DBK experts.
The third group includes projects that do not yet require special measures, but are monitored in accordance with the procedure established by the DBK.
“In current conditions, all projects are subjected to a stress test in one way or another, but we believe that this group is quite stable, continues to operate and is able to independently service the Bank's loans,” he said.
He also added that during the pandemic, DBK canceled all penalties against borrowers related to non-financial obligations; the cancellation of penalties for financial obligations is considered individually, and if necessary, there are possibilities to postpone the payment dates to a later date.
“Projects that are under construction and equipment delivery are particularly affected by the pandemic. Foreign companies can be equipment suppliers, so the closure of borders affects the implementation of these projects. We review deadlines and interact with government agencies if the future revenue of these companies depends on public/quasi-public structures,” he said.
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