ANNOUNCEMENT 28 Sep 2016In September 2016, the government of the Czech Republic announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
Cesk? exportn? banka, a.s. ( ; )
- 7108 (240), " "
During the Kyrgyz-Czech Business Forum held on 28 September 2016, a Memorandum was signed between Ceská exportní banka, a.s. (the state Czech export Bank, "CEB") and the Russian-Kyrgyz Development Fund (RKDF). Its purpose is the provision of financing in Kyrgyzstan by Ceská exportní banka, a.s., under the guarantees, issued by RKDF, for projects in the framework of bilateral economic cooperation.
The conditions of this CEB bank product, described on page 6 of the 2nd provided source, reveal contain a local content requirement: a minimal Czech share of 50% in the project. The same document reveals that joint credits, issued simultaneously between CEB and RKDF, are possible for large scale products. Again a local content requirement exists: CEB finances in this case 100% of produced in the Czech Republic equipment.
'If a businessman from Kyrgyzstan wants to buy equipment, equipment or raw materials from the Czech Republic, we will be glad to provide concessional credit facilities under the guarantees of the RKDF,' said Mrs Zuzana Chytková, Regional Director for the Commonwealth of Independent States of CEB.