White gold

Financing farmers and textile clusters for cotton production

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Individually determined

Maximum amount of credit

Up to 18 months

Credit term

Up to 12 months

Grace period

In national and foreign currency

Credit currency

Determined based on the project

Credit rate

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Conditions
Necessary documents

Basic information

Purpose of credit:

Cotton production;

Financing of harvesting costs;

Final settlement of cotton purchases;

Financing of excess costs under futures contracts.

Currency:

In national and foreign currency

Credit term:

1. For cotton-textile clusters (if land lease rights exist):

Credit term: up to 18 months

Grace period: up to 12 months

Principal repayment: in equal installments over the last 6 months

2. For clusters and enterprises that have launched the production of textile products (cotton procurement):

Credit term: up to 12 months

Grace period: up to 6 months

Principal repayment: in equal installments over the last 6 months

3. For farmers and seed farms (Micro, Small, Medium Business) who have concluded futures contracts:

Credit term: up to 4 months

Grace period: not specified

Repayment: in equal installments

4. For seed farms (harvest costs):

Credit term: up to 3 months

Grace period: not specified

Repayment: in equal installments

Interest rate:

For cotton-textile clusters:

On cotton purchases (based on harvest results):

Up to 60 percent of the harvest value — 10% per annum (including 2% bank margin)

Up to 80 percent of the harvest value — 14% per annum (including 2% bank margin)

For all economic entities:

For cotton cultivation and harvesting — 10% per annum (including 2% bank margin)

Credit amount:

For cotton-textile clusters and textile enterprises:

For cotton purchase - up to 60% or 80% of the crop value (depending on the terms of the contract)

For farms with futures contracts:

For cotton harvest - up to 20% of the crop value

For seed farms:

For cotton harvest - up to 20% of the cotton value

Credit collateral:

For sport contracts:

A liquid asset collateral of at least 50% of the loan value is required

For farmers and seed farms (Micro, Small, Medium Business) that have concluded a futures contract:

The loan is only granted on the basis of a liquid asset collateral of at least 125% of the loan amount

Liquid assets include:

Movable and immovable property

Buildings and structures

Residential premises

Autotransportation

Special equipment

Non-property collateral:

If liquid assets are not sufficient, the remaining part can be covered as follows:

Through the guarantee of legal entities

Requirements for the guarantee:

The amount of the guarantee must not exceed 1.5 times the net assets of the guarantor enterprise
(less other previously issued guarantee obligations)

Exception: this restriction does not apply if the guarantee is provided as additional collateral

Guarantee requirements:

The guarantee amount must not exceed 1.5 times the net assets of the guarantor enterprise (less other previously issued guarantee obligations)

Exception: this limitation does not apply if the guarantee is issued as additional security

List of basic documents required from the client:

Application form
The client's constituent documents (with the latest changes).
Financial statements for the latest period:
- Balance sheet;
- Statement of financial results;
- Spread of debtors and creditors.
Information on accounts in other banks (for the last year, if available).
Decision of the client's authorized body on obtaining a loan.
Documents confirming the authority of the person signing the loan agreement: order, power of attorney, etc.
Futures contract or other contract for the supply of raw cotton.
Documents on the land plot (lease agreement or document confirming ownership).
Certificate on the location of cotton fields, approved by the district administration (with an electronic digital signature).
Certificate on the standard yield of land fertility, approved by the agricultural department.

Notes:

A business plan is not required for small and medium-sized businesses.
A legal opinion on the assessment of sanctions risks must be provided in transactions concluded with sanctioned countries.
The bank may request additional documents depending on the case.