Investment credits: Indicative Financial Terms

Terms /conditions/Recipient EFSD Member-State Project company
Interest rate (% annual basis)
Spread (over basic interest rate)
Variable spread calculated for each 6-month interest accrual period as a difference between the cost of funding of Russia and Kazakhstan on the international markets and LIBOR
Risk premium
To be determined by the EFSD Council based on project risks and other risks
Front-end fee (% of the amount of commitment)  
up to 1% up to 1%
Commit-ment fee (%, annually)  
0,5%   0,5%
Maturity (years)  
up to 15 up to 10
Grace period (years)  
up to 5   up to 5
Requirements for co-financing by the recipient (% of project value)  
none no less than 20%
Requirements for co-financing by the end-recipient (% of project value)   no less than 20% -
Additional requirements Financial terms of investment loans granted by EFSD to low-income countries comply with the requirements of IMF programs.

While setting loans financial terms, the EFSD Council considers IMF programmes recommendations on the long-term debt sustainability of a country.