Lending to the EFSD is carried out on the principles of repayment, urgency and payment. The EFSD also provides grants for financing social projects of the participating States on a gratuitous and irrevocable basis.

The EFSD provides financing only if the borrower has no overdue obligations to the EFSD, its member States and other international financial institutions. All loans are provided within the annual access limits proportional to the GNI of the participating States per capita.

Decisions on granting loans to participating States are based on an assessment:

- The acute need of the state for financing and its solvency;

- Long-term debt sustainability of the country;

- Institutional capabilities of the borrower to achieve the stated performance indicators of EFSD programs and projects;

- The quality of public administration and the effectiveness of the country's anti-corruption policy (taking into account the assessments of the World Bank, the IMF and other MFIs).



Financial loans are allocated only to the Governments of the participating States to support anti-crisis and stabilization programs formulated and implemented by the borrowing States themselves.
The programs should include measures to achieve macroeconomic stability and improve the business climate, ensure long-term development, fiscal and debt sustainability, and promote financial and economic cooperation between the participating States. Progress in the implementation of reforms is measured by specific indicators and assessed by the EFSD Council based on the reports of the Governor. The minimum amount of the financial loan is set at 10 million dollars.

The mechanism for reviewing an application for financing and making a decision is established by the Procedure for granting financial loans from EFSD funds.

Investment loans are allocated primarily to support interstate investment projects of an integration nature (for example, in the field of energy and infrastructure), as well as large national investment projects. Investment loans can be attracted either by companies implementing interstate investment projects, or by the EFSR member states themselves.

A prerequisite for the provision of investment financing from EFSD funds is the impossibility of attracting market financing for the implementation of the project in full, on reasonable terms for the needs of the project and at an acceptable level of risk.

The procedure for granting investment loans includes two stages:

- preliminary, which examines the concept of the project and the possibilities for developing a feasibility study;

- the final one, at which a decision is made on the allocation of an investment loan.

The minimum size of the EFSD investment loan is: — for countries with GNI per capita over 5 thousand US dollars, it is set at 30 million US dollars, — for other countries - at 10 million US dollars. The mechanism for reviewing an investment application and making a decision establishes the Procedure for providing investment financing from the funds of the Eurasian Fund for Stabilization and Development

Grants for social projects
Starting from June 15, 2015, the share of the net profit of the Eurasian Fund for Stabilization and Development in the amount of up to 10% annually can be used to provide grants to the Republic of Armenia, the Kyrgyz Republic and the Republic of Tajikistan.

Grants are provided to finance projects of the participating States in the following sectors of the social sphere:

- education;

- healthcare;

- efficiency of public administration;

- Social security and protection, including food security.

Grants are provided in US dollars and/or euros.

Within the framework of one project, the grant amount may be:

- not less than 500,000 US dollars and not more than 2,000,000 US dollars with a sales period of up to 1.5 years;

- not less than 2,000,000 US dollars and not more than 5,000,000 US dollars with a sales period of 1.5 years or more.