Production
Loan for Agricultural Products Production
UNOFFICIAL CONSOLIDATED VERSION OF THE DECISION FOR THE TERMS AND CONDITIONS FOR REDEPLOYMENT OF FUNDS FROM THE COMPENSATION FUNDS FROM FOREIGN AID
This consolidated version of the Decision is made for the potential loan beneficiaries to be more easily familiarized with the terms and conditions and does not cause any legal action. The original Decision, as well as the modifications of the Decision are also presented below.
Article 1
Funds from the Compensation Fund accounts for foreign aid Italy, Compensation Fund for foreign aid and Compensation Fund for foreign aid – Japan that constitute the Compensation Fund from foreign aid and the Compensation Fund from other foreign aid (hereinafter: Funds) as at 31 May 2012 shall be transferred to three Macedonian Bank for Development Promotion individual accounts with identified purpose (hereinafter: Bank) with the National Bank of the Republic of Macedonia.
The Bank on behalf and for account of the Government of the Republic of Macedonia under the contracted agreement with the Government of RM shall manage funds and approve loans to legal entities registered in the Republic of Macedonia under terms and conditions set herewith. The Minister of Finance shall sign the Agreement set forth in paragraph 2 of this Article on behalf and for account of the Government of the Republic of Macedonia.
Article 2
Compensation Funds resources shall be extended as loans to:
- Micro, small and medium enterprises dealing with agricultural products production,
- Micro, small and medium enterprises dealing with agricultural products processing, and
- Micro, small and medium enterprises dealing with purchase and export of primary agricultural products and their manufactured products.
Funds shall be used for improvement and development of their production capacities, for appearance at the domestic and foreign markets, increase in investments, creating jobs, for productive initial investment and to increase competitiveness.
Micro, small and medium sized enterprises herein denote micro, small and medium enterprises defined under the Law on State Aid Control.
Article 3
The Bank on behalf and for account of the Republic of Macedonia shall conclude loan agreements with the beneficiaries of the funds pursuant to this Decision.
Article 4
Loan beneficiaries should meet the following criteria:
- At least 20% own paricipation in the total investment,
- Satisfactory liquidity level and ability to repay the loan,
- Positive financial results in the last fiscal year, and
- To have settled all matured liabilities toward the state (tax, allowances, etc.).
Except as provided by paragraph 1 of this Article loan beneficiary may be:
- newly established enterprises which founders are legal entities with positive financial results in the past fiscal year, and
- enterprises which in the past fiscal year had negative financial result, insofar as they provide bank guarantee for the approved loan.
Article 5
Funds shall be disbursed under the following terms and conditions:
- Loans for primary agricultural production intended for financing fixed assets and working capital for:
- Vegetable plant production: agriculture (cereal, industrial, gardening and fodder crops), fruit-growing, wine-growing;
- Stock-breeding: cattle raising, sheep farming, pig breeding, goat breeding, poultry farming, fish breeding, beekeeping;
- New agricultural propulsion and connecting mechanization.
The amount of the credit is EUR 300,000 the most.
One-off fee of 0.8% of the loan amount shall be charged on approval of the loan.
The interest rate is 2% p.a.
The repayment period for fixed assets is up to 60 months including a 1-year grace period, and up to 18 months for working capital including a grace period of 3 months. Interest shall be calculated and paid during the grace period.
- Loans for agricultural products processing intended for financing fixed assets and working capital for:
- purchasing equipment for processing agricultural products;
- building new, purchasing or reconstruction of existing production facilities for processing and storage of agricultural products;
- purchasing processing input (at least 70% of the principal product to be processed should come from domestic origin);
- purchasing all types of input for production of livestock feed;
- purchasing components of non-agricultural origin for the needs of the final product (30% of the investment, the most);
- packing and labelling.
Loan amount is EUR 300,000, except for purchase of input for processing of grapes, wheat, fruit and vegetables the loan amount may exceed up to EUR 500,000.
One-off fee of 0.8% of the loan amount shall be charged on approval of the loan.
The interest rate is 2% p.a.
Repayment period for fixed assets is up to 60 months with grace period of 1 year included, and up to 18 months for working capital with grace period of 3 months included. During the grace period interest shall be calculated and paid.
- Loans for export of primary agricultural products and their manufactured products intended for financing fixed assets and working capital for the purpose of purchasing and export, such as:
- cold stores for maintaining the use value of the products until their sale,
- packaging and calibration machines,
- building new and purchasing or modernization of existing production facilities for fruit and vegetables post picking activities (storage, condition maintaining of products until their sale, calibration, packaging) and milk collection centres,
- purchase of primary agricultural products intended for export,
- purchase of processed agricultural products intended for export (100% domestic origin),
- package and labelling.
Loan amount is up to EUR 300,000.
One-off fee of 0.8% of the loan amount shall be charged on approval of the loan.
The interest rate is 2% p.a.
Repayment period is up to 60 months for fixed assets with grace period of 1 year included, and up to 18 months for working capital with 3 months grace period included. During the grace period interest shall be calculated and paid.
The beneficiaries shall borrow in denars, the calculation of the interest rate and payment of the matured obligations shall also be made in denars.
In case the payment of the obligations in the established tenors is late, a default interest shall be calculated and paid for the matured and outstanding obligations from the date of maturity till the date of payment in an amount defined by the law.
Article 6
Utilization of a loan set forth in Article 5 thereof is realized pursuant to a loan application submitted to the Bank.
Together with the application the applicant is obliged to submit:
- investment programme or business plan,
- information on the current balance of the entity issued by the Sole Trade Registry within the Central Registry of the Republic of Macedonia,
- evidence for fulfilment of the criteria set forth in Article 4 thereof,
- confirmation on a registered agricultural farm and registered production capacities issued by the Ministry of Agriculture, Forestry and Water Economy when applying for finance for primary agricultural production,
- valid production and sales contract with the primary producer regarding loans for purchase of primary agricultural products,
- decision for registration in the appropriate registries of processors and exporters of agricultural products at the Ministry of Agriculture, Forestry and Water Economy when applying for finance for processing of agricultural products and export of primary agricultural products and their manufactured products,
- ZP form (form for signatories on behalf of the firm), copy
- List of specimen signatures, copy
- Statement of capital connection,
- Balance sheet and Income statement at least for the last fiscal year, copy
- Trial balance for the current year including the last date of entry,
- Turnover on the giro-account in the current year or for the last 6 months the minimum (computer listing of card 1000 from the accounting office),
- Analytical table of clients – specification of groups 12, 22, and 25 (buyers, suppliers, and loans) with the same date as the trial balance,
- Auditor’s report (refers to companies which by law have obligation to have auditors’ report),
- Book of shareholders and Book of stakes,
- Documents showing the market for purchasing raw materials and sale of final produce (to submit offers and contracts with the potential buyers and suppliers, if any),
- Documents for the possible collateral,
- Pro forma invoice and other documents regarding the goods to be financed by the loan,
- Statement for borrowed funds from other banks and financial institutions.
Article 7
Bank shall approve disbursement of a loan and shall conclude an agreement with the final beneficiary.
In addition to the agreement, the final beneficiary shall submit collateral for the loan, i.e. first mortgage lien of real estate in ratio 2:1 with the disbursed loan amount and the calculated interest, or a bank guarantee in an amount of the approved loan and the calculated interest.
Article 8
On request of the beneficiary, the loan funds shall be transferred to its account and used only for the purpose intended within 90 days from the disbursement date. For the earmarked utilization of funds the beneficiary shall submit appropriate documents to the Bank within 8 days from the day of payment.
Article 8-a
Procurements made within 180 days before the credit beneficiary submits the loan application in the Bank may be included in the scope of financing.
The Loan beneficiary together with the documents stated in Article 6 herein, shall additionally submit all documents related to the procurements (invoices, sales contracts, banking orders, statements and other documents) to prove that the loan was used for the purpose intended.
Article 9
In case the Bank establishes that the loan funds were used for unspecified purposes, the loan shall be deemed fully due.
The Bank shall monitor the earmarked utilization of the loan during the loan life time.
Article 10
As of the day of its entering into force, this Decision shall supersede the Decision on the conditions and criteria for re-employment of Compensation Fund funds of foreign aid (Official Gazette of RM, no. 60/2004) and Decision on re-employment of the Compensation Fund funds from other foreign aid (Official Gazette of RM, no. 28/2005).
Commenced procedures shall be finished according to the decisions they were based on.
The provisions of the decisions below shall apply on the loans approved under the Decision on the conditions and criteria for re-employment of Compensation Fund funds from foreign aid (Official Gazette of RM, no. 42/1995), Decision on the conditions and criteria for re-employment of the Compensation Fund funds from foreign aid (Official Gazette of RM, no. 51/2001), the Decision on the conditions and criteria for re-employment of Compensation Fund funds from foreign aid (Official Gazette of RM, no. 60/2004) and Decision on re-employment of the Compensation Fund funds from other foreign aid (Official Gazette of RM, no. 28/2005) until loan repayment.
Application Forms:
Processing
Loan for Agricultural Products Processing
UNOFFICIAL CONSOLIDATED VERSION OF THE DECISION FOR THE TERMS AND CONDITIONS FOR REDEPLOYMENT OF FUNDS FROM THE COMPENSATION FUNDS FROM FOREIGN AID
This consolidated version of the Decision is made for the potential loan beneficiaries to be more easily familiarized with the terms and conditions and does not cause any legal action. The original Decision, as well as the modifications of the Decision are also presented below.
Article 1
Funds from the Compensation Fund accounts for foreign aid Italy, Compensation Fund for foreign aid and Compensation Fund for foreign aid – Japan that constitute the Compensation Fund from foreign aid and the Compensation Fund from other foreign aid (hereinafter: Funds) as at 31 May 2012 shall be transferred to three Macedonian Bank for Development Promotion individual accounts with identified purpose (hereinafter: Bank) with the National Bank of the Republic of Macedonia.
The Bank on behalf and for account of the Government of the Republic of Macedonia under the contracted agreement with the Government of RM shall manage funds and approve loans to legal entities registered in the Republic of Macedonia under terms and conditions set herewith. The Minister of Finance shall sign the Agreement set forth in paragraph 2 of this Article on behalf and for account of the Government of the Republic of Macedonia.
Article 2
Compensation Funds resources shall be extended as loans to:
- Micro, small and medium enterprises dealing with agricultural products production,
- Micro, small and medium enterprises dealing with agricultural products processing, and
- Micro, small and medium enterprises dealing with purchase and export of primary agricultural products and their manufactured products.
Funds shall be used for improvement and development of their production capacities, for appearance at the domestic and foreign markets, increase in investments, creating jobs, for productive initial investment and to increase competitiveness.
Micro, small and medium sized enterprises herein denote micro, small and medium enterprises defined under the Law on State Aid Control.
Article 3
The Bank on behalf and for account of the Republic of Macedonia shall conclude loan agreements with the beneficiaries of the funds pursuant to this Decision.
Article 4
Loan beneficiaries should meet the following criteria:
- At least 20% own paricipation in the total investment,
- Satisfactory liquidity level and ability to repay the loan,
- Positive financial results in the last fiscal year, and
- To have settled all matured liabilities toward the state (tax, allowances, etc.).
Except as provided by paragraph 1 of this Article loan beneficiary may be:
- newly established enterprises which founders are legal entities with positive financial results in the past fiscal year, and
- enterprises which in the past fiscal year had negative financial result, insofar as they provide bank guarantee for the approved loan.
Article 5
Funds shall be disbursed under the following terms and conditions:
- Loans for primary agricultural production intended for financing fixed assets and working capital for:
- Vegetable plant production: agriculture (cereal, industrial, gardening and fodder crops), fruit-growing, wine-growing;
- Stock-breeding: cattle raising, sheep farming, pig breeding, goat breeding, poultry farming, fish breeding, beekeeping;
- New agricultural propulsion and connecting mechanization.
The amount of the credit is EUR 300,000 the most.
One-off fee of 0.8% of the loan amount shall be charged on approval of the loan.
The interest rate is 2% p.a.
The repayment period for fixed assets is up to 60 months including a 1-year grace period, and up to 18 months for working capital including a grace period of 3 months. Interest shall be calculated and paid during the grace period.
- Loans for agricultural products processing intended for financing fixed assets and working capital for:
- purchasing equipment for processing agricultural products;
- building new, purchasing or reconstruction of existing production facilities for processing and storage of agricultural products;
- purchasing processing input (at least 70% of the principal product to be processed should come from domestic origin);
- purchasing all types of input for production of livestock feed;
- purchasing components of non-agricultural origin for the needs of the final product (30% of the investment, the most);
- packing and labelling.
Loan amount is EUR 300,000, except for purchase of input for processing of grapes, wheat, fruit and vegetables the loan amount may exceed up to EUR 500,000.
One-off fee of 0.8% of the loan amount shall be charged on approval of the loan.
The interest rate is 2% p.a.
Repayment period for fixed assets is up to 60 months with grace period of 1 year included, and up to 18 months for working capital with grace period of 3 months included. During the grace period interest shall be calculated and paid.
- Loans for export of primary agricultural products and their manufactured products intended for financing fixed assets and working capital for the purpose of purchasing and export, such as:
- cold stores for maintaining the use value of the products until their sale,
- packaging and calibration machines,
- building new and purchasing or modernization of existing production facilities for fruit and vegetables post picking activities (storage, condition maintaining of products until their sale, calibration, packaging) and milk collection centres,
- purchase of primary agricultural products intended for export,
- purchase of processed agricultural products intended for export (100% domestic origin),
- package and labelling.
Loan amount is up to EUR 300,000.
One-off fee of 0.8% of the loan amount shall be charged on approval of the loan.
The interest rate is 2% p.a.
Repayment period is up to 60 months for fixed assets with grace period of 1 year included, and up to 18 months for working capital with 3 months grace period included. During the grace period interest shall be calculated and paid.
The beneficiaries shall borrow in denars, the calculation of the interest rate and payment of the matured obligations shall also be made in denars.
In case the payment of the obligations in the established tenors is late, a default interest shall be calculated and paid for the matured and outstanding obligations from the date of maturity till the date of payment in an amount defined by the law.
Article 6
Utilization of a loan set forth in Article 5 thereof is realized pursuant to a loan application submitted to the Bank.
Together with the application the applicant is obliged to submit:
- investment programme or business plan,
- information on the current balance of the entity issued by the Sole Trade Registry within the Central Registry of the Republic of Macedonia,
- evidence for fulfilment of the criteria set forth in Article 4 thereof,
- confirmation on a registered agricultural farm and registered production capacities issued by the Ministry of Agriculture, Forestry and Water Economy when applying for finance for primary agricultural production,
- valid production and sales contract with the primary producer regarding loans for purchase of primary agricultural products,
- decision for registration in the appropriate registries of processors and exporters of agricultural products at the Ministry of Agriculture, Forestry and Water Economy when applying for finance for processing of agricultural products and export of primary agricultural products and their manufactured products,
- ZP form (form for signatories on behalf of the firm), copy
- List of specimen signatures, copy
- Statement of capital connection,
- Balance sheet and Income statement at least for the last fiscal year, copy
- Trial balance for the current year including the last date of entry,
- Turnover on the giro-account in the current year or for the last 6 months the minimum (computer listing of card 1000 from the accounting office),
- Analytical table of clients – specification of groups 12, 22, and 25 (buyers, suppliers, and loans) with the same date as the trial balance,
- Auditor’s report (refers to companies which by law have obligation to have auditors’ report),
- Book of shareholders and Book of stakes,
- Documents showing the market for purchasing raw materials and sale of final produce (to submit offers and contracts with the potential buyers and suppliers, if any),
- Documents for the possible collateral,
- Pro forma invoice and other documents regarding the goods to be financed by the loan,
- Statement for borrowed funds from other banks and financial institutions.
Article 7
Bank shall approve disbursement of a loan and shall conclude an agreement with the final beneficiary.
In addition to the agreement, the final beneficiary shall submit collateral for the loan, i.e. first mortgage lien of real estate in ratio 2:1 with the disbursed loan amount and the calculated interest, or a bank guarantee in an amount of the approved loan and the calculated interest.
Article 8
On request of the beneficiary, the loan funds shall be transferred to its account and used only for the purpose intended within 90 days from the disbursement date. For the earmarked utilization of funds the beneficiary shall submit appropriate documents to the Bank within 8 days from the day of payment.
Article 8-a
Procurements made within 180 days before the credit beneficiary submits the loan application in the Bank may be included in the scope of financing.
The Loan beneficiary together with the documents stated in Article 6 herein, shall additionally submit all documents related to the procurements (invoices, sales contracts, banking orders, statements and other documents) to prove that the loan was used for the purpose intended.
Article 9
In case the Bank establishes that the loan funds were used for unspecified purposes, the loan shall be deemed fully due.
The Bank shall monitor the earmarked utilization of the loan during the loan life time.
Article 10
As of the day of its entering into force, this Decision shall supersede the Decision on the conditions and criteria for re-employment of Compensation Fund funds of foreign aid (Official Gazette of RM, no. 60/2004) and Decision on re-employment of the Compensation Fund funds from other foreign aid (Official Gazette of RM, no. 28/2005).
Commenced procedures shall be finished according to the decisions they were based on.
The provisions of the decisions below shall apply on the loans approved under the Decision on the conditions and criteria for re-employment of Compensation Fund funds from foreign aid (Official Gazette of RM, no. 42/1995), Decision on the conditions and criteria for re-employment of the Compensation Fund funds from foreign aid (Official Gazette of RM, no. 51/2001), the Decision on the conditions and criteria for re-employment of Compensation Fund funds from foreign aid (Official Gazette of RM, no. 60/2004) and Decision on re-employment of the Compensation Fund funds from other foreign aid (Official Gazette of RM, no. 28/2005) until loan repayment.
Application Forms:
Export
Loan for Export of Primary Agricultural Products and Their Manufactured Products
UNOFFICIAL CONSOLIDATED VERSION OF THE DECISION FOR THE TERMS AND CONDITIONS FOR REDEPLOYMENT OF FUNDS FROM THE COMPENSATION FUNDS FROM FOREIGN AID
This consolidated version of the Decision is made for the potential loan beneficiaries to be more easily familiarized with the terms and conditions and does not cause any legal action. The original Decision, as well as the modifications of the Decision are also presented below.
Article 1
Funds from the Compensation Fund accounts for foreign aid Italy, Compensation Fund for foreign aid and Compensation Fund for foreign aid – Japan that constitute the Compensation Fund from foreign aid and the Compensation Fund from other foreign aid (hereinafter: Funds) as at 31 May 2012 shall be transferred to three Macedonian Bank for Development Promotion individual accounts with identified purpose (hereinafter: Bank) with the National Bank of the Republic of Macedonia.
The Bank on behalf and for account of the Government of the Republic of Macedonia under the contracted agreement with the Government of RM shall manage funds and approve loans to legal entities registered in the Republic of Macedonia under terms and conditions set herewith. The Minister of Finance shall sign the Agreement set forth in paragraph 2 of this Article on behalf and for account of the Government of the Republic of Macedonia.
Article 2
Compensation Funds resources shall be extended as loans to:
- Micro, small and medium enterprises dealing with agricultural products production,
- Micro, small and medium enterprises dealing with agricultural products processing, and
- Micro, small and medium enterprises dealing with purchase and export of primary agricultural products and their manufactured products.
Funds shall be used for improvement and development of their production capacities, for appearance at the domestic and foreign markets, increase in investments, creating jobs, for productive initial investment and to increase competitiveness.
Micro, small and medium sized enterprises herein denote micro, small and medium enterprises defined under the Law on State Aid Control.
Article 3
The Bank on behalf and for account of the Republic of Macedonia shall conclude loan agreements with the beneficiaries of the funds pursuant to this Decision.
Article 4
Loan beneficiaries should meet the following criteria:
- At least 20% own paricipation in the total investment,
- Satisfactory liquidity level and ability to repay the loan,
- Positive financial results in the last fiscal year, and
- To have settled all matured liabilities toward the state (tax, allowances, etc.).
Except as provided by paragraph 1 of this Article loan beneficiary may be:
- newly established enterprises which founders are legal entities with positive financial results in the past fiscal year, and
- enterprises which in the past fiscal year had negative financial result, insofar as they provide bank guarantee for the approved loan.
Article 5
Funds shall be disbursed under the following terms and conditions:
- Loans for primary agricultural production intended for financing fixed assets and working capital for:
- Vegetable plant production: agriculture (cereal, industrial, gardening and fodder crops), fruit-growing, wine-growing;
- Stock-breeding: cattle raising, sheep farming, pig breeding, goat breeding, poultry farming, fish breeding, beekeeping;
- New agricultural propulsion and connecting mechanization.
The amount of the credit is EUR 300,000 the most.
One-off fee of 0.8% of the loan amount shall be charged on approval of the loan.
The interest rate is 2% p.a.
The repayment period for fixed assets is up to 60 months including a 1-year grace period, and up to 18 months for working capital including a grace period of 3 months. Interest shall be calculated and paid during the grace period.
- Loans for agricultural products processing intended for financing fixed assets and working capital for:
- purchasing equipment for processing agricultural products;
- building new, purchasing or reconstruction of existing production facilities for processing and storage of agricultural products;
- purchasing processing input (at least 70% of the principal product to be processed should come from domestic origin);
- purchasing all types of input for production of livestock feed;
- purchasing components of non-agricultural origin for the needs of the final product (30% of the investment, the most);
- packing and labelling.
Loan amount is EUR 300,000, except for purchase of input for processing of grapes, wheat, fruit and vegetables the loan amount may exceed up to EUR 500,000.
One-off fee of 0.8% of the loan amount shall be charged on approval of the loan.
The interest rate is 2% p.a.
Repayment period for fixed assets is up to 60 months with grace period of 1 year included, and up to 18 months for working capital with grace period of 3 months included. During the grace period interest shall be calculated and paid.
- Loans for export of primary agricultural products and their manufactured products intended for financing fixed assets and working capital for the purpose of purchasing and export, such as:
- cold stores for maintaining the use value of the products until their sale,
- packaging and calibration machines,
- building new and purchasing or modernization of existing production facilities for fruit and vegetables post picking activities (storage, condition maintaining of products until their sale, calibration, packaging) and milk collection centres,
- purchase of primary agricultural products intended for export,
- purchase of processed agricultural products intended for export (100% domestic origin),
- package and labelling.
Loan amount is up to EUR 300,000.
One-off fee of 0.8% of the loan amount shall be charged on approval of the loan.
The interest rate is 2% p.a.
Repayment period is up to 60 months for fixed assets with grace period of 1 year included, and up to 18 months for working capital with 3 months grace period included. During the grace period interest shall be calculated and paid.
The beneficiaries shall borrow in denars, the calculation of the interest rate and payment of the matured obligations shall also be made in denars.
In case the payment of the obligations in the established tenors is late, a default interest shall be calculated and paid for the matured and outstanding obligations from the date of maturity till the date of payment in an amount defined by the law.
Article 6
Utilization of a loan set forth in Article 5 thereof is realized pursuant to a loan application submitted to the Bank.
Together with the application the applicant is obliged to submit:
- investment programme or business plan,
- information on the current balance of the entity issued by the Sole Trade Registry within the Central Registry of the Republic of Macedonia,
- evidence for fulfilment of the criteria set forth in Article 4 thereof,
- confirmation on a registered agricultural farm and registered production capacities issued by the Ministry of Agriculture, Forestry and Water Economy when applying for finance for primary agricultural production,
- valid production and sales contract with the primary producer regarding loans for purchase of primary agricultural products,
- decision for registration in the appropriate registries of processors and exporters of agricultural products at the Ministry of Agriculture, Forestry and Water Economy when applying for finance for processing of agricultural products and export of primary agricultural products and their manufactured products,
- ZP form (form for signatories on behalf of the firm), copy
- List of specimen signatures, copy
- Statement of capital connection,
- Balance sheet and Income statement at least for the last fiscal year, copy
- Trial balance for the current year including the last date of entry,
- Turnover on the giro-account in the current year or for the last 6 months the minimum (computer listing of card 1000 from the accounting office),
- Analytical table of clients – specification of groups 12, 22, and 25 (buyers, suppliers, and loans) with the same date as the trial balance,
- Auditor’s report (refers to companies which by law have obligation to have auditors’ report),
- Book of shareholders and Book of stakes,
- Documents showing the market for purchasing raw materials and sale of final produce (to submit offers and contracts with the potential buyers and suppliers, if any),
- Documents for the possible collateral,
- Pro forma invoice and other documents regarding the goods to be financed by the loan,
- Statement for borrowed funds from other banks and financial institutions.
Article 7
Bank shall approve disbursement of a loan and shall conclude an agreement with the final beneficiary.
In addition to the agreement, the final beneficiary shall submit collateral for the loan, i.e. first mortgage lien of real estate in ratio 2:1 with the disbursed loan amount and the calculated interest, or a bank guarantee in an amount of the approved loan and the calculated interest.
Article 8
On request of the beneficiary, the loan funds shall be transferred to its account and used only for the purpose intended within 90 days from the disbursement date. For the earmarked utilization of funds the beneficiary shall submit appropriate documents to the Bank within 8 days from the day of payment.
Article 8-a
Procurements made within 180 days before the credit beneficiary submits the loan application in the Bank may be included in the scope of financing.
The Loan beneficiary together with the documents stated in Article 6 herein, shall additionally submit all documents related to the procurements (invoices, sales contracts, banking orders, statements and other documents) to prove that the loan was used for the purpose intended.
Article 9
In case the Bank establishes that the loan funds were used for unspecified purposes, the loan shall be deemed fully due.
The Bank shall monitor the earmarked utilization of the loan during the loan life time.
Article 10
As of the day of its entering into force, this Decision shall supersede the Decision on the conditions and criteria for re-employment of Compensation Fund funds of foreign aid (Official Gazette of RM, no. 60/2004) and Decision on re-employment of the Compensation Fund funds from other foreign aid (Official Gazette of RM, no. 28/2005).
Commenced procedures shall be finished according to the decisions they were based on.
The provisions of the decisions below shall apply on the loans approved under the Decision on the conditions and criteria for re-employment of Compensation Fund funds from foreign aid (Official Gazette of RM, no. 42/1995), Decision on the conditions and criteria for re-employment of the Compensation Fund funds from foreign aid (Official Gazette of RM, no. 51/2001), the Decision on the conditions and criteria for re-employment of Compensation Fund funds from foreign aid (Official Gazette of RM, no. 60/2004) and Decision on re-employment of the Compensation Fund funds from other foreign aid (Official Gazette of RM, no. 28/2005) until loan repayment.
Application Forms:
