RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of June 20, 2022 No. 326

About approval of the Procedure for provision of the guarantee to subjects of national economy

For the purpose of realization of the crisis response measures aimed at providing homeland and food security of the country by support to subjects of national economy, 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. Approve the Procedure for provision of the guarantee to subjects of national economy according to appendix.

2. Bring in the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About questions of the Ministry of Finance of the Kyrgyz Republic" of November 15, 2021 No. 253 the following change:

in Regulations on the Ministry of Finance of the Kyrgyz Republic approved by the above-stated resolution:

- to add the subitem 5 of Item 12 with the paragraph the eleventh the following content:

"-addresses in accordance with the established procedure as the guarantor financial credit institutions.".

3. Bring in the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About questions of subordinated divisions of the Ministry of Finance of the Kyrgyz Republic" of December 10, 2021 No. 302 the following change:

in Regulations on Financial and credit fund under the Ministry of Finance of the Kyrgyz Republic approved by the above-stated resolution:

- to add the subitem 4 of Item 12 with the paragraph the seventh the following content:

"-provision in accordance with the established procedure guarantees on behalf of the Ministry to subjects of national economy before financial credit institutions;".

4. Ceased to be valid according to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of 05.07.2023 No. 335

5. To the Ministry of Finance of the Kyrgyz Republic:

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;

2) to take other measures following from this resolution.

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.

6. To impose control of execution of this resolution on management of control of execution of decisions of the President and the Presidential Administration Cabinet of Ministers of the Kyrgyz Republic.

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

Appendix

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of June 20, 2022 No. 326

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 the 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 obligation fulfillment of the subjects of national economy before the financial and credit, international and foreign organizations (further - creditors) on the credit, leasing or the bank guarantee presented according to decisions 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 consumption rates 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. Drafts of decisions shall contain the amount and currency 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.

Subjects which perform activities less than 5 (five) years or newly created subjects, and also the having negative indicators of financial and economic activities, without fail provide mortgage providing or guarantee of the third parties.

In case of lack of mortgage providing or guarantee, the size of own contribution of the subject shall constitute at least 30% of the project amount;

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) subitems 2, 4 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 statement with request to initiate provision of the guarantee;

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