Providing guarantees to entrepreneurs, including exporters
Assistance in small and medium-sized enterprises development
VIDEO “HOW TO OBTAIN THE SERVICES OF OJSC “GUARANTEE FUND”
OJSC “Guarantee fund” – a financial instrument for development
OJSC “Guarantee Fund” is aimed at providing access to financing for small and medium-sized enterprises (SMEs) in case of insufficient collateral throughout the Kyrgyz Republic.
THE PRESIDENT SIGNED THE LAW “ON GUARANTEE FUNDS IN THE KYRGYZ REPUBLIC”
On April 13, 2019, the President of the Kyrgyz Republic, Sooronbai Jeenbekov, signed the Law “On Guarantee Funds in the Kyrgyz Republic”.
The law was enacted by the Jogorku Kenesh of the Kyrgyz Republic on March 7, 2019.
The purpose of the enacted Law is to improve the legal regulation for establishment and development of guarantee funds in the Kyrgyz Republic.
The law defines the legal and economic bases for establishment and activity of guarantee funds.
With its entry into force, the current Law of the Kyrgyz Republic of July 30, 2013 No. 167 “On Guarantee Funds in the Kyrgyz Republic” will become invalid.
The law enters into force 15 days after the date of official publication.
“When I was the Prime Minister, we established Guarantee Fund. Why regions were not developing? Because loans and fiscal policy did not reach them. Entrepreneurs did not have property to put as collateral. Now attention is paid to this problem and state Guarantee Fund helps them. Financing from Guarantee Fund has tripled, guarantees amounting to KGS 755 million were issued to 655 projects. Partner banks of Guarantee Fund doubled loan issue and generally issued loans amounting to about KGS 3 billion. This amount will increase, special attention will be paid to the regions and processing”.
From the speech of the President of the Kyrgyz Republic Sooronbai Jeenbekov on February 21, 2019 during the meeting with residents of Suzak district of Jalal-Abad region.
MALIK ABAKIROV SUMMED UP THE RESULTS OF THE FIRST HALF OF THE 2019, AND TOLD ABOUT IMPORTANT EVENTS IN THE ACTIVITIES OF THE OJSC “GUARANTEE FUND”
On July 29, 2019, the “Kabar” news agency held a press conference for the media of the Chairman of the Management Board of the OJSC Guarantee Fund, Malik Abakirov, dedicated to the results of activities for the first half of 2019, in supporting small and medium enterprises of the republic, and important events that occurred during this period. Media agencies such as “ELTR”, “Kabar”, “AKIpress”, “Birinchi Radio”, and online publications as “Aimak”, “Borbor.kg” and others participated in that conference.
The Chairman of the Management Board of the OJSC Guarantee Fund, Malik Abakirov, summarized the results of activities for the first half of 2019, and discussed about important events, including the adoption of a new amendments of the law on guarantee funds, becoming of the National Bank of the Kyrgyz Republic one of the shareholders, enhancing the authorized capital up to 1.132 billion KGS, a program of participation in the management of enterprises and the development of mass entrepreneurship in Kyrgyzstan, high appreciation of Asian Development Bank and export of the Kyrgyz model of guarantee funds, participating in World Bank project, international conferences, opening of the branch of the Guarantee Fund in Naryn region, and other events.
Results of the first half of the 2019
The performance indicators of OJSC “Guarantee Fund” demonstrate the effective use of capital for guarantees, satisfactory quality of the guarantee portfolio, high dynamics of institutional growth and an increase in the volume of assistance to the development of small and medium enterprises. In the first half of the 2019, as of June 30, 225 guarantees were approved with the total amount of 385 million KGS. Partner Banks issued 1.153 billion KGS in loans to entrepreneurs.
In total, during the period from 2016 to July 29, 2019, the Fund provided 916 guarantees in the amount of 1.2 billion KGS. Partner Banks with the guarantee of the Fund issued loans to entrepreneurs in the amount of 4.1 billion KGS.
Workplaces. Due to the guarantees provided, 1601 new jobs were created and 7590 existing ones were supported.
Women Entrepreneurship. Women entrepreneurs have received 248 guarantees in the amount of 285 million KGS. The share of female entrepreneurship in the total volume of guarantees was 28 percent.
Export. 57 guarantees were issued in the amount of 202 million KGS for export-oriented projects.
At the end of the press conference, Chairman of the Board Malik Abakirov answered questions from journalists.
Procedure for obtaining guarantee. More…
The Borrower contacts one of partner banks of OJSC “Guarantee Fund” with loan application
The Bank independently considers the application of the Borrower, analyzes the submitted documents and assesses the financial condition. If the only obstacle to obtain a loan is insufficient collateral, then the Partner Bank informs the Borrower about the possibility of attracting guarantee of OJSC “Guarantee Fund”.
If the Borrower agrees to obtain a guarantee of the Fund, the Partner Bank will deliver a signed application to OJSC “Guarantee Fund” for guarantee provision. Simultaneously with this application, the Partner Bank sends the required package of documents.
OJSC “Guarantee Fund” in short term from the moment of receiving application takes a decision according to Guarantee application.
In case of a positive decision, a trilateral guarantee agreement is concluded.
The Borrower before obtaining a loan, pays the guarantee commission, according to the established tariff.
Obtaining a loan.
MALIK ABAKIROV, CHAIRMAN OF THE MANAGEMENT BOARD OF OJSC “GUARANTEE FUND”, WAS REWARDED THE TITLE OF HONORARY CITIZEN OF NARYN REGION”
Chairman of the Management Board of OJSC “Guarantee Fund”, Malik Abakirov, was given the title of the “Honorary Citizen of Naryn Region”. This event was held during the grand opening of the branch of OJSC “Guarantee Fund” in Naryn Region on September 6, 2019. First...read more
SINCE THE START OF THE YEAR, UNDER THE GUARANTEES OF OJSC “GUARANTEE FUND”, LOANS IN VOLUME OF 1.5 BILLION KGS HAVE BEE ISSUED
The support provided to OSJC “Guarantee Fund” by the head of the state, parliament, and government gives a great incentive to intensify work in all areas of activity, including issuing guarantees to entrepreneurs, implementing the “One Region – One Enterprise”...read more
Success story of “Ysmayil” household – the recipient of the guarantee of OJSC “Guarantee Fund”, narrated by USAID PROBLEMS OF A BUSINESS Farmers and business owners in Kyrgyzstan face many obstacles. One of the most limiting is access to finance. Even with interest...read more
Statistics illustrate that, over the course of 8 months, the number of issued guarantees by the fund for a term up to 1 year was 44, from 1 to 2 years – 155, from 2 to 3 years -87, 3 and more years – 7. The most popular guarantee term, thus, is 1 to 2-year period. As...read more
As of September 10, 2019, OJSC “Guarantee Fund” issued 300 guarantees in the total of 516.9 million KGS. 1.572 billion KGS were approved in loans by partner banks. As of September 10, 2019, in aggregate, the fund issued 956 guarantees for a total of 1.271 billion KGS....read more
On September 6, 2019, the opening ceremony of the first branch of OJSC “Guarantee Fund” was held in the building of the Plenipotentiary Office of the Government of the Kyrgyz Republic in Naryn region. First Deputy Plenipotentiary Representative Kasen Asizov, Chairman...read more
“Guarantee Fund” keeps providing guarantee support to entrepreneurs. The results of the efforts demonstrate good pace and growth indicators. In general, as of September 6, the fund approved 954 guarantees in the amount of 1.271 billion KGS. The volume of loans...read more
OJSC “Guarantee Fund” successfully continues the process of supporting small and medium enterprises in all regions. The number and amount of guarantees as well as loans issued by partner banks, are growing. From the inception of its activity in November 2016 up to...read more
CHAIRMAN OF THE MANAGEMENT BOARD OF OJSC “GUARANTEE FUND”, MALIK ABAKIROV, MET WITH ENTREPRENEURS OF BATKEN REGION
Projects for regional development. As we previously reported, the selection of business projects, infrastructure projects, and development programs for investment is taking place in the regions of the republic. The government allocated two billion KGS for this...read more
OJSC “GUARANTEE FUND” TARGET GROUP
Entrepreneurs (including women entrepreneurs) of SME segment with activities focused on the production and processing of agricultural products, industry, services, as well as SMEs with export-oriented and import-substituting activities.
OJSC “GUARANTEE FUND” OPERATING CONDITIONS
The maximum guarantee amount is up to 50% of the loan amount and not more than 10% of the capital amount (KGS 7 million or the equivalent of USD 100 thousand).
The process of obtaining a loan with OJSC “Guarantee Fund” More…
The client comes to the bank for a loan and if they cannot get the necessary amount due to insufficient collateral, the client and the bank apply to OJSC “Guarantee Fund” for guarantee.
OJSC “GUARANTEE FUND” MISSION
The mission of the Fund is to ensure the dynamic and sustainable growth of the economy of the Kyrgyz Republic by developing a market of guarantees, to increase the share of SMEs to the country’s GDP and to improve the population’s welfare.
OJSC “GUARANTEE FUND” FUNCTIONS
- Providing a guarantee to entrepreneurs, including exporters;
- Participation in the Program of the Government of the Kyrgyz Republic “Financing of Agriculture”;
- Providing a guarantee to agricultural producers;
- Assistance in the development of small and medium enterprises;
- Assistance in the development of Regional Guarantee Funds.
OJSC “GUARANTEE FUND” VISION
The Fund will become a stable developing financial organization of the Kyrgyz Republic providing SMEs with the ability to obtain affordable loans by development of a guarantee system.
By the end of 2020 the Fund will become the leading financial institution in the market of the guarantee provision for SMEs and will contribute to attract potential local and international investors.
OJSC “GUARANTEE FUND” (THE FUND) AND REGIONAL GUARANTEE FUNDS (RGF) INTERACTION
- Institutional development of RGF;
- Possibility of RGF’s partial capitalization, Fund – 70%; local government-30%;
- Opening of Fund’s branches in regions with no RGF and no possibility of capitalization from local government;
- Conducting potential customer evaluation by RGF to provide guarantees under a contract with the Fund;
- Providing a reguarantee for large projects
- Issuance of guarantees to businessmen.