KYRGYZ BUSINESSES NEED MONEY TO GROW, GUARANTEES MAKE IT HAPPEN
On January 12, 2016 at OJSC “Guarantee Fund” office the first meeting of the Advisory Board on SME Support and Development took place. The main goal of the Advisory Board (hereinafter – the Board) is providing targeted and system support for SMEs including women’s entrepreneurship, as well as export-oriented and import-substituting enterprises at all development stages.
The Board consists of representatives of state bodies and business communities. The Board is intended to choose number of potential enterprises, operating in the priority economic sectors, assist in their development and provide access to financing.
On the agenda, the Board approved the priority directions and criteria for selection of enterprises, as well as methodology for evaluation of enterprises considering proposes and recommendations.
Members of the Board expressed their opinions on the relevance of SME support. This initiative is fully approved by business community representatives.
The Board members also decided to consider miscellaneous financial support instruments for SMEs and assist in their implementation. For reference: Management of OJSC “Guarantee Fund” has created the Advisory Board on SME Support and Development.
The Advisory Board on SME Support and Development (hereinafter – the Board) is a standing consulting and advisory body founded for formulation of suggestions and recommendations to support SMEs as well as to support development of export-oriented productions and enterprises in the priority economic sectors including women entrepreneurs.
The Board consists of Deputy Minister of Economic Affairs of the Kyrgyz Republic D. Imanaliev, Deputy Chairman of the State Service for Financial Market Regulation and Supervision under the Government of the Kyrgyz Republic M. Pirnazarov, Representatives of Government Apparatus of the Kyrgyz Republic and State Agency on promotion of investment and export of the Kyrgyz Republic, the Vice-President of the Chamber of Commerce and Industry of the Kyrgyz Republic and representatives of business communities.
OJSC “Guarantee Fund” and Kyrgyz Union of Industrialists and Entrepreneurs signed Memorandum on cooperation
On May 19 at OJSC “GF” office Memorandum on cooperation between OJSC “Guarantee Fund” (OJSC “GF”) and Kyrgyz Union of Industrialists and Entrepreneurs was signed. It was signed by the Chairman of the Board of OJSC “GF” Malik Abakirov on the one hand and the President of Kyrgyz Union of Industrialists and Entrepreneurs Kurmanbek Otorov on the other hand.
As Malik Abakirov noted, this document would contribute to expansion of linkages between OJSC “Guarantee Fund” and SMEs representatives included in Kyrgyz Union of Industrialists and Entrepreneurs. “Our main objective is to provide entrepreneurs with guarantees for obtaining loans in commercial banks and we consider the fact that they are united in Kyrgyz Union of Industrialists and Entrepreneurs very positively,” – said M. Abakirov.
On the other hand, the President of Kyrgyz Union of Industrialists and Entrepreneurs Kurmanbek Otorov announced that the initiative for cooperation was mutual, as it was beneficial for both sides. The Union includes more than 20 legal entities consisting of thousands of entrepreneurs. Among them are potential customers of OJSC “GF”.
Indeed, according to OJSC “GF”, from 40% to 50% of entrepreneurs who apply for bank loans cannot obtain the necessary loan amount due to insufficient collateral. The research shows that the potential demand of market for guarantees is KGS 9.6 billion. We can only welcome the appearance of such a state company in our country established to assist entrepreneurs in obtaining loans for development, expansion of production and technical modernization.
“Cooperation within this Memorandum generally will affect the further activation of small and medium-sized enterprises, increase their financial possibilities and contribute to expansion of production capacities, creation of new jobs, allocation of tax and social payments to local budgets”, – assured Malik Abakirov and Kurmanbek Otorov.
Malik Abakirov: “OJSC “GF” is aimed at assisting SMEs in obtaining loans in the necessary amount in case of insufficient collateral by providing guarantees.”
On May 19, 2017 at OJSC “Guarantee Fund” office (OJSC “GF”) press conference of the Chairman of the Board of OJSC “GF” took place with participation of representatives of mass media – news agencies “Kabar” and “24.kg”, magazines “Slovo Kyrgyzstana”, “Erkin-Too”, “Obshestvennyi reiting”, “Ekonomika”, “Achyk sayasat”, etc. The press conference was dedicated to the performance indicators of OJSC “GF” for the entire period (as of May 18, 2017).
“OJSC “GF” is aimed at assisting SMEs in obtaining loans in the necessary amount in case of insufficient collateral by providing guarantees,” – said the Chairman of the Board of OJSC “Guarantee Fund” Malik Barktabasovich Abakirov. Over the past six months OJSC “GF” provided significant support to SMEs by providing guarantees amounting to total KGS 57,1 million, so SMEs could obtain bank loans amounting to KGS 226 million. Journalists were given detailed information materials. Conversation with journalist was very thorough and trust-based. They received answers to all their questions.
The meeting between the Chairman of the Board of OJSC “Guarantee Fund” and TIKA programme coordinator
On May 18, 2017 the meeting between the Chairman of the Board of OJSC “Guarantee Fund” M.B. Abakirov and programme coordinator of the Turkish International Cooperation and Development Administration (TIKA) Evren Rutbil was held. During the meeting M. Abakirov told about activities of recently created OJSC “Guarantee Fund” and its development prospects. Issues on SME support in Kyrgyzstan were already discussed. On this occasion, M. Abakirov handed a Certificate of Appreciation to TIKA programme coordinator in Kyrgyzstan Mr. Evren Rutbil for technical assistance to OJSC “Guarantee Fund”.