01.12.2006 - 28.02.2007
|Overall project value (EUR)||70 000 Euro, 99 680 USD|
|No. of staff provided||3|
|Name of Client||National Bank of Kyrgyz Republic (NBKR)|
|Financing agency||Asian Development Bank (ADB)|
|Name of partners||The Financial Consultants (FINCON)|
|Detailed Narrative Description of Project||Consulting Services for Independent Review and Cost Valuation of the Financial Company for Support and Development of Credit Unions (FCCU) in the Kyrgyz Republic
The Kyrgyz Republic received a loan from the Asian Development Bank towards the cost of the Rural Financial Institutions Project to increase the level and sources of savings mobilization and lending services in rural communities in order to rebuild a sustainable rural financial system. The National Bank of the Kyrgyz Republic (NBKR) was the Executing Agency and the Financial Company for Support and Development of Credit Unions (FCCU) was the Implementing Agency. The NBKR owned 100% share in the capital of FCCU. Most of loan proceeds have been used for financing eligible subloans to credit unions (CUs) through FCCU. The Government was developing an exit strategy for the project and had to recruit a consulting firm for a short-term period to undertake independent evaluation of FCCU.
|Detailed Narrative Description of Services provided||Valuation of FCCU based on the income approach - discounted cash flow method (DFC).
- Check information provided in the FCCU financial statements as background and history of the FCCU and historical and current financial activity of FCCU;
- Perform financial analysis of FCCU taking into consideration audited historical financial statements for the fiscal periods 2000-2005 prepared according to the International Financial Reporting Standards;
- Prepare the financial forecasts which will form the basis of discounted cash flow model;
- Analysis of credit portfolio of the FCCU and the credit unions, including check of legal registration of credit affairs, mortgaging and other maintenance, estimation of economic validity, business-plans and a cash-flow under the credits, an estimation of a recurrence of credits and solvencies of borrowers, and an estimation of carrying out of credit policy.
- Assessing zones of risk in the activity of FCCU and the credit unions.
- Sample the main assets for value assess, including sampling and visit to borrowers/debtors of FCCU;
- Prepare a comprehensive valuation report.
- Formulate a follow-up project for the privatization of the FCSCU.