The Cabinet of Ministers adopted a resolution “On measures to attract and use the credit line of the Asian Infrastructure Investment Bank to support businesses during the coronavirus pandemic”.
Preliminary agreements have been reached by the Ministry of Investment and Foreign Trade, the Ministry of Finance and the National Bank for Foreign Economic Activity (FEA) to attract a $200 million credit line from the Asian Infrastructure Investment Bank (AIIB).
The credit line of the AIIB is attracted on the basis of several tranches under the state guarantee, including each tranche with a grace period of 2 years for a period of 5 years. Reportedly, the interest rate is 6 months Libor plus 0.65% per annum, the initial one-time organizational commission of the AIIB is 0.25% and the obligation commission for the unused part of the credit line is 0.25% per annum.
The funds will be used to support and rehabilitate businesses affected by the coronavirus pandemic, provide them with working capital and increase production capacity, including projects in manufacturing, agriculture, wholesale and retail trade, catering and transportation.
The National Bank for FEA is the executive body responsible for the targeted and efficient use of borrowed funds and loans under the credit line allocated by the AIIB.
The National Bank for FEA was recommended to pay for the expenses related to the return of the funds raised by the AIIB, including interest, initial one-time organizational commission and obligation commission fees, and other expenses at its own expense.
