Banking support of contracts

Banking support of contracts

In accordance with Article 49 of the Law No. 27 of the Kyrgyz Republic on “Law on public procurement”, adopted on April 14, 2022 and Decree of the Cabinet of Ministers of the Kyrgyz Republic of September 27, 2022 No. 522 "On the implementation of banking support contracts in public procurement, “Keremet Bank” OJSC is an authorized bank that provides contract banking support services (BSC) in the field of public procurement.

Banking support of a contract is the provision by an authorized bank on the basis of the agreement on banking support of the following:

  • making payments;
  • monitoring payments made by the supplier and all other persons involved in the performance of the contract within the framework of the performance of this contract, in a separate account opened in the authorized bank to ensure control over the targeted expenditure of funds;
  • bringing the results of banking support of contracts to the attention of the procuring entity.

 Objectives of BSC application in public procurement:

  • ensuring the targeted expenditure of funds of state budget;
  • minimization of financial and tax risks of procuring entities;
  • ensuring transparency in the execution of public procurement contracts.

General presentation of the BSC product

Standard forms of documents, as well as methodological materials explaining the procedure for the application of banking support of a contract in public procurement were approved by Order No. 169-P of the Ministry of Finance of the Kyrgyz Republic on October 28, 2022.

BSC services 

Within the framework of providing contract banking services, “Keremet Bank” OJSC provides the following services to procuring organizations and suppliers:

“BSC interactive reporting” is the BSC service provided by “Keremet Bank” OJSC to procuring entities and designed to display the current status and statistics of settlements during the execution of the supported contract, as well as to continuously generate interactive reports and upload consolidated information on the results of settlement monitoring and control over the target expenditure of funds under the supported contract. 

"Reception Portal of Grounding Documents" is the BSC service provided by "Keremet Bank" OJSC to suppliers, by which the latter submit grounding documents to "Keremet Bank" OJSC to transfer applications. 

Contacts of responsible employees at the link.

close