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  • Summarizing results of the first half of 2017

    Press release of OJSC “Guarantee Fund” from July 4, 2017

    Chairman of the Board of OJSC “GF” Malik Abakirov summarized results of the first half of 2017

     On July 4, 2017 OJSC “Guarantee Fund” (OJSC “GF”) held a press conference on “Results of OJSC “GF”” activity on assistance in entrepreneurship development in Kyrgyzstan for the first half of 2017”.

    The chairman of the Board of OJSC “GF” Malik Abakirov addressed the journalists of leading mass media of the Kyrgyz Republic.

    OJSC “GF” today executes relevant socio-economic objective, assisting SMEs, – said Malik Abakirov – contributing them in realization of business plans, increasing employment and allocation of payments and tax into budget and developing infrastructure.

    According to the Chairman, OJSC “Guarantee Fund” demonstrates steady and progressive development. Every month the number of guarantee recipients increases, on average per month there are 20-30 applications from entrepreneurs. Guarantees are also provided for women entrepreneurship support, the share of which to the total volume of provided guarantees constitutes almost 50%.

    More than a third of the total number of guarantees are provided for enterprises of export and import. The net profit of the state company for 6 months of 2017 constituted KGS 7 m.

    Thus, as of June 30, 84 guarantees in the total amount of KGS 93,4 m were approved.

    Information on guarantees issued by sectors: entrepreneurs involved in agriculture were provided with 32 guarantees in the amount of KGS 13,4 m (loans, obtained by entrepreneurs in banks, constituted KGS 39,7 m or 12% of the total volume).

    Entrepreneurs in production sphere obtained 11 guarantees in the amount of KGS 27,5 m, total bank loan amount constituted KGS 133,7 m (41%).

    To support trade infrastructure 22 guarantees were issued in the amount of KGS 28,8 m; bank loan amount constituted KGS 78,1 m (24%).

    In the sphere of tourism 5 guarantees are issued in the amount of KGS 6,5 m and bank loan in the amount of 16,9 m (5%).

    In the sphere of transportation and storage 6 guarantees are issued in the amount of KGS 6,4 m and bank loan in the amount of KGS 17 m (5%).

    In the sphere of agro processing 4 guarantees are issued in the amount of KGS 1,7 m and bank loans in the amount of KGS 4,9 m (1%).

    In the sphere of services 2 guarantees are issued in the amount of KGS 4,3 m and bank loans in the amount of KGS 9,6 m (3%)

    In the sphere of infrastructure 1 guarantee is issued in the amount of KGS 2,9 m and bank loans in the amount of KGS 25,3 m (8%).

    In the sphere of health infrastructure 1 guarantee is issued in the amount of KGS 1,9 m and bank loan in the amount of KGS 4,8 m (1%).

    For women entrepreneurship the total volume of provided guarantees constituted 40%, this sector has provided 38 guarantees. Including 10 guarantees in the total amount of KGS 19,5 m (21%) are provided to import- and export-directed enterprises.

    Number of created jobs constituted 304, supported 781 existing jobs.

    Share of guarantees to GDP constituted 0,05%. Share of issued loans under guarantees to the total loan portfolio of the banking system constituted 0,32%.

    The average term of guarantees is 1,5 year, the average guarantee amount – KGS 1,1 m.

    Number of guarantees issued by regions

    As of June 30, guarantees are issued: in Bishkek – 25 (30% of the total number), Chui region – 16 (19%), Osh region – 11 (13%), Batken region – 10 (12%), Naryn region – 10 (12%), Issyk – Kul region – 7 (8%), Jalal-Abad region – 5(6%).

    Volume of issued guarantees by regions in KGS million

    Bishkek – 53 (57% of the total volume), Chui region – 18 (19%), Osh region – 6 (6%), Batken region – 4 (4%), Naryn region – 3 (3%), Issyk – Kul region – 7 (7%), Jalal-Abad region – 3 (3%).

    Number of issued guarantees by business type

    Medium business – 24 (29% of the total number of guarantees), small medium – 22 (26%), medium business — 23 (27%), large business – 15 (18%).

    Partner banks

    Partner banks of OJSC “GF” are OJSC “Aiyl Bank”, OJSC “RSK Bank”, OJSC CB “Kyrgyzstan”, CJSC “Bank of Asia”, CJSC “Finca Bank”, CJSC “Bank Kompanion” and CJSC “Demir Bank”.

    The above banks have in total 180 branches; it is 56% of the branch network of all commercial banks of Kyrgyzstan. As of June 30, more than 50% of partner bank branches participated in issuing loans secured partially by guarantees to SMEs.

    As the statistics shows, every month the number of guarantee applications increases by an average of 20-30 units. If as of June 1, thirty branches participated, then as of June 30, almost forty branches did. It proves access extension to financial guarantees, production increase in general and further SMEs growth.

    Issued loans statistics

    The highest results were demonstrated by the following banks: OJSC “RSK Bank” issued 3 loans in the amount of KGS 104,7 m (32% of the total volume), 3 guarantees were approved by OJSC “GF” in the amount of KGS 11,6 million; CJSC “Bank of Asia” – amount of issued loans constituted KGS 88,5 m (27%), number of guarantees – 23, guarantee amount – KGS 34,8 m; OJSC CB “Kyrgyzstan” – loan amount – KGS 76 m (23%), number of guarantees – 12, guarantee amount – KGS 24,9 m; OJSC “Aiyl Bank” – loan amount – KGS 45,5 m (14%), number of guarantees – 39, guarantee amount – KGS 17 m; CJSC “Bank Kompanion” – loan amount – KGS 12,1 m (4%), number of guarantees – 4, guarantee amount – KGS 3,9 m. CJSC “Finca Bank” issued loans in the amount of KGS 3,5 m (1%), number of guarantees – 3, guarantee amount – KGS 1,2 m.

    ***

    Presentation of new product of OJSC “GF” – “Commercial banks rating in Kyrgyzstan” was held. It was presented by risk manager Reina Kurmankozhoeva. The presentation will help to acquire information on activity of banks, make simple comparative analysis and increase financial literacy.

    ***

    The chairman of the Board of OJSC “GF” Malik Abakirov emphasized the relevance of financial literacy among SME entrepreneurs. He reported that soon the seminar within the ADB project “Women entrepreneurship development” would take place.  Attendees of the seminar representing small and medium enterprises will not only acquire theoretical knowledge but will design business plans that will be realized with the help of employees of the Fund. OJSC “GF” will provide real concrete support for entrepreneurs. Thus, employees of the Fund will assist them starting from designing business plan till addressing banks for loan and provide guarantee if necessary.

    ***

    At the end of conference employees of OJSC “Guarantee Fund” and Mass Media representatives discussed the next press tour – a visit to enterprise – guarantee recipient. The enterprise of agro processing in Shopokov city is supposed to be the next place of visit.

    All necessary information about OJSC “Guarantee Fund”, its aims and objectives, issued guarantees, guarantee conditions for SMEs you can find on our website www.gf.kg.

    Contact information: 66-49-60, 62-53-74, e-mail: office@gf.kg

    For reference:

    OJSC “Guarantee Fund” was created in 2016 by the Government of the KR to assist entrepreneurs in obtaining loans in the necessary amount in case of insufficient collateral.

    Capital of OJSC “GF” constitutes KGS 282 m, KGS 72 m was allocated from the republican budget and KGS 3 m is financial support of ADB (KGS 210 m).

    The priority sectors for providing guarantee are 1) production of different types of products; 2) agriculture and agro-processing; 3) clothing and textile production; 4) tourism; 5) export-oriented and import-substituting enterprises; 6) other.

    Ceiling on guarantee is not more than 10% of the capital of OJSC “GF” and not more than 50% of the loan amount.

    Partner banks of OJSC “GF” are OJSC “Aiyl Bank”, OJSC “RSK Bank”, OJSC CB “Kyrgyzstan”, CJSC “Bank of Asia”, CJSC “Finca Bank”, CJSC “Bank Kompanion”, CJSC “Demir Bank”.

    The legislative basis for Guarantee Funds is the Law on “Guarantee Funds of the Kyrgyz Republic” which determines operating conditions for Guarantee Funds.  For developing guarantee funds system the Government of the KR approved Development Concept for Guarantee Funds until 2020.

    On the territory of the Kyrgyz Republic 6 guarantee funds operate in 4 regions (Kara-Balta city, Karakol city, Osh city, Jalal-Abad city, Kant city and Sarai Aiyl Okmotu of Osh region).

    OJSC “Guarantee Fund”