2. Are there any limitations on the credit amount?
Each bank sets limitations on the amount of credits depending on the type of lending. As a rule, the biggest credits are issued for the purpose of developing existing businesses. Kyrgyz law establishes...
View Article3. What are the approximate limits on interest rates?
At present, each bank has its own lending programs: business credits, retail credits, mortgage credits, etc., and establishes minimum and maximum rates for respective credit products. Approximate...
View Article4. Is it necessary to be a Kyrgyz citizen to receive credits from Kyrgyz banks?
No, it is not. Kyrgyz law does not prohibit foreign nationals or stateless persons from receiving credits from Kyrgyz banks.
View Article5. How credit is repaid?
The repayment of credit and interest, as well as other charges concerned is made according to the credit agreement and credit repayment schedule. In case of a credit facility, the repayment of the...
View Article6. Is it possible to prepay?
The right to prepay and prepayment terms and conditions are provided in the credit agreement. The agreement can establish penalty or moratorium/ban on the early repayment of the credit. In any case,...
View Article7. What security can be used for a credit?
For the purposes of ensuring the repayment of credit, the following types of security are used: a. penalty (contractual sanctions for late payment); b. pledge (mortgage); c. surety (guaranty); d. bank...
View Article8. Who can act as a surety for a credit? What is the surety’s liability?
Any solvent persons can act as a surety for a credit. A surety assumes joint liability for the performance by borrower of its obligations under the credit agreement, unless the surety agreement...
View Article9. What happens when the provisions of a credit agreement are violated?
Depending on the extent of violations and terms and conditions of the agreement, borrower may be required to perform additional obligations such as payment of penalty or fines. In case of material...
View Article10. What are the most significant credit-related expenses?
When considering a bank credit, pay attention not only to interest rates and maturity, but also to credit-related expenses. If all expenses listed below are summed up, they can result in a quite...
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