Crediting of the enterprises of agro-industrial complex on the terms of partial compensation of an interest rate on the short-term and medium-term credits in 2007

The Resolution of Cabinet council of Ukraine from February 21, 2007 of No. 259 About the statement of the Order of use in 2007 of the means provided in the Government budget for implementation of financial support of the enterprises of agro-industrial complex through the mechanism of reduction of the cost of the short-term and medium-term credits is accepted.
In article the deputy minister of an agrarian policy of the Crimea A.Balabas tells about an order of granting the credits: the great attention is given to compensation on the short-term and medium-term credits.

Crediting of the agrarian and industrial complexes enterprises on the terms of partial compensation of a rate on the credits of commercial banks in 2006 Partial compensation of a kreyoditny rate is provided according to the Resolution Kabineyota Ministrov Ukrainy from February 21, 2007 of N 259 About the statement of the Order of use in 2007 of the means provided in the government budget for implementation of financial support of the enterprises of agro-industrial complex through the mechanism of reduction of the cost of the short-term and medium-term credits.kratkosrochny the credit involved for term no more than 12 calendar months within fiscal year is, and medium-term – from 12 to 36 calendar months. Compensation is provided on a competitive basis to the enterprises of agro-industrial complex which obtained the credits in the current year (further – borrowers), provided that the sum of interests on credit and under in addition signed contracts which subject is granting by banks of services (settlement service of the credit, consideration of the credit project, management of the credit, consulting services), and also on the credits of the credit unions doesn’t exceed in national currency of 18 annual interest rates for short-term and 17 percent – for the medium-term credits, and in foreign currency – no more than 12 annual interest rates for short-term and 11 percent – for the medium-term credits. Compensation not to predostavlyaetsyazayemshchik who are recognized as bankrupts concerning whom action on bankruptcy is brought, are in a stage of elimination or have delayed more than for half a year debt before State and local budgets, the Pension fund of Ukraine. Compensation on the short-term credits is provided in national currency at a rate of discount rate of National bank that affects charge date procentovza using the credits, and vinostranny currency at a rate of 6 annual interest rates. For compensation implementation on reduction of the cost of interest rates on the short-term credits regional public administrations form the competitive commissions. The regional competitive commissions define criteria, approve conditions and terms of carrying out competitions concerning reduction of the cost of interest rates on the short-term credits and will publish them in printing mass media. Compensation on the medium-term credits is provided in national currency at a rate of discount rate of National bank that affects date of charge of percent for using the credits, and in foreign currency at a rate of 5 annual interest rates: · ·        to agricultural enterprises on the credits, connected with acquisition of fixed assets of agricultural purpose, including agricultural and irrigating machinery, the equipment for plants on production of biofuel, processing of foodstuff, cattle-breeding complexes, and also the expenses connected with construction and reconstruction of production objects of agricultural purpose, plants on production of biofuel, processing of foodstuff, cattle-breeding complexes and irrigation systems; · ·        National joint stock company "Ukragroleasing" – on the credits connected with purchase of agricultural machinery for its transfer to financial leasing.

In case of identification of no-purpose use of the credit granting to the borrower of any state support throughout it and three next budgetary periods stops.

For compensation implementation on reduction of the cost of interest rates on the medium-term credits the Council of ministers of the Autonomous Republic Crimea, formed the competitive commission.

Zayemshchikidlya receiving compensation of an interest rate on the medium-term credits submits to the competitive commission (The ministry of an agrarian policy of the Autonomous Republic Crimea) the demand (in a printing and electronic look in the Excel program, the form is applied – the appendix 1) and the following documents:

1.                      The reference from the Uniform state register of legal entities and individuals – businessmen.

2.                      Copy of the Certificate on the state registration.

3.                      The copy of the credit agreement certified by the relevant bank (the credit union), and copies of in addition signed contracts between the borrower and bank.

4.                      The schedule of repayment of the credit and payment of the percent, certified by bank (the credit union).

5.                       A bank extract (the credit union) about receiving by the borrower of the credit.

6.                      The certificate calculation of bank of the sum of payment for the period of using the credit till December 31, 2007 with definition of the sum which is compensated at the expense of compensation.

7.                      Financial statements for the enterprises of agro-industrial complex, including again created, for the last year or the reporting for the last reporting period:

7.1                  form N 1 "Balance",

7.2                  N 2 form Report on financial results,

7.3                  N 3 form Report on cash flow,

7.4                  N 4 form Report on own capital,

7.5                  the N 5 form Notes to annual financial statements,

7.6                  50-sg form N Main economic indicators of work of agricultural enterprises.

8. Certificate of taxing authority of lack (existence) of debt on the tax obligations.

9. The reference of governing body of the Pension fund of Ukraine in the Autonomous Republic Crimea about lack (existence) of debt on payments in the Pension fund of Ukraine.

10. Certificate of bank details of the borrower.

11. The written application obligation of the borrower to return in a month in the budget the received budgetary funds in case of establishment by supervisory authorities of the fact of their illegal receiving or no-purpose use (the sample is applied – the appendix 2).

12. Copy of the certificate on the state registration of the innovative project and business plan.

Borrowers who had the right to compensation of an interest rate on the medium-term (long-term) credits in 2005-2006, make an application also documents in the competitive commissions, and pass competitive selection under general conditions according to use Order in 2007 of the means provided in the government budget for implementation of financial support of the enterprises of agro-industrial complex through the mechanism of reduction of the cost of the short-term and medium-term credits.

Borrowers who involved the medium-term credits and behind results of consideration of documents the relevant competitive commission acquired the right to compensation of an interest rate on such credits, submit monthly to the 7th of the next period to the Ministry of an agrarian policy of the Autonomous Republic Crimea the following documents:

1. The certificate of bank of the sum of percent actually paid by the borrower for using the medium-term credit for the corresponding period with sum definition that is compensated to the borrower at the expense of budgetary funds (further – the certificate of the actual payment of percent behind the medium-term credit).

2. A copy of the payment document on payment of percent for using such credits, certified by bank.

3. Copies of confirming documents (the invoice, payment orders, etc.), and also copies of primary documents which confirm receiving by the borrower of tovaro-material values.

A.V.Balabas, deputy minister of an agrarian policy of the autonomous republic Crimea

Appendix 2

To the chairman

competitive commission

Council of ministers

Autonomous republic Crimea

Kolisnichenko N. P.

STATEMENT

Enterprise ______________________________________________________

full name of the enterprise

undertakes to return in a month to the Government budget of Ukraine, the received budgetary funds (provided for implementation of financial support of the enterprises of agro-industrial complex via the mechanism of reduction of the cost of the medium-term credits) in case of establishment by supervisory authorities of the fact of their illegal receiving or no-purpose use. In case of not return of means to the specified term the fine at a rate of 120 annual interest rates of discount rate of National bank per every day of delay is charged.  Head __________________              __________________                                                                           full name Signature  Chief accountant __________________     __________________                                                                                         full name Signature