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Law No. 45 “On guaranty funds in Kyrgyz Republic.”

Country/Territory
Kyrgyzstan
Document type
Legislation
Date
2019
Source
FAO, FAOLEX
Subject
General
Keyword
Special fund Business/industry/corporations Credit Financing Contract/agreement
Geographical area
Asia, Central Asia, CIS (Commonwealth of Independent States), Europe and Central Asia, Landlocked Developing Nations, North Asia
Entry into force notes
This Law enters into force 15 days after the date of its official publication.
Abstract

This Law establishes that guaranty fund is a legal entity established in the form of a joint stock company, which has undergone the procedure of registration with the National Bank of Kyrgyz Republic and carries out activities to increase the availability of financing by providing guarantees to business entities for business development, expansion of production, acquisition and modernization of fixed assets, introduction of new technologies, innovative activity and opening of new enterprises. In this case, the financing means the provision of loans and their substitutes, as well as transactions/operations carried out in accordance with Islamic principles of financing. Guaranty funds are not liable for the obligations of Kyrgyz Republic, just as Kyrgyz Republic is not responsible for warranty obligations unless the parties voluntarily take over such obligations. Guaranty funds are not liable for the obligations of the National Bank. The National Bank is not responsible for the obligations of guaranty funds. Calculation procedure and requirements to the equity capital of guaranty fund are set by the National Bank. Provision of guarantees by guaranty fund is made by conclusion of a guaranty agreement (contract) between a guaranty fund, a financial and credit organization and a business entity under conditions determined by this Law, regulatory legal acts of the National Bank and by the rules of warranty provision.

Full text
Russian
Website
cbd.minjust.gov.kg