New partner bank.
On January 25, 2018 the Chairman of the Board of OJSC “Guarantee Fund” (OJSC “GF”) Malik Abakirov and Deputy Chairman of OJSC “Bakai Bank” Ruslan Kagirov concluded cooperation agreement.
Malik Abakirov in his welcoming speech expressed his gratitude to “Bakai Bank” management for the interest in cooperation with OJSC “GF” and participation in financing small and medium enterprises under guarantees. Guarantees provide real support to small and medium enterprises (SMEs). For 14 months of activity as of December 31, 2017 OJSC “GF” issued 237 guarantees in the amount of 248,1 m KGS, meanwhile the volume of loaning under guarantees constituted 972,4 m KGS. Guarantees are issued in 34 regions of the Republic out of 40.
Now, with “Bakai Bank” number of partner banks increased up to 10: OJSC “Aiyl Bank”, OJSC “RSK Bank”, OJSC “CB Kyrgyzstan”, CJSC “Bank of Asia”, CJSC “Finca Bank”, “Bank Kompanion”, CJSC “Finca Bank”, “Demir Bank”, OJSC “Halyk Bank Kyrgyzstan”, CJSC “BTA Bank” and the Russian Kyrgyz Development Fund. Partner banks in total have developed branch network consisting of 220 branches over the Republic. With “Bakai Bank” the number is increasing and this will help in creating more opportunities for entrepreneurs especially in regions.
Deputy Chairman of the Board of OJSC “Bakai Bank” Ruslan Kagirov told that the Bank was happy to cooperate with OJSC “GF” and ready to provide SMEs with loan resources under guarantees of OJSC “GF”. He stressed that banks including “Bakai Bank” often countered situations when entrepreneurs did not have enough collateral for realizing business plans. “As time showed, the idea of creating guarantee fund was successful,” – Ruslan Kagirov said.
Kagirov Ruslan Zayndievich – Deputy Chairman of the Board of OJSC “Bakai Bank” since October, 2017. He has the higher education in economics. In banking sphere, he has been working since 2001, in “Bakai Bank” since 2016.
“Bakai Bank” is a universal commercial bank, created in the form of open joint stock company. “Bakai Bank” has been providing wide spectrum of services for the population of Kyrgyzstan for more than 15 years. It has more than 50 savings banks and branches. Currently, the bank has established correspondent relations with many leading banks of the world and huge banks of the CIS.
Today on January 19, President of the Kyrgyz Republic Sooronbai Zheenbekov had a meeting with the Chairman of the Board of Russian Kyrgyz Development Fund Erkin Asrandiev and the Chairman of the Board of OJSC “Guarantee Fund” Malik Abakirov.
During the meeting they discussed issues on providing access to financing for entrepreneurs in regions of the Republic within the Presidential Decree on “the announcement of 2018 – the Year of Regional Development”.
President Sooronbai Zheenbekov stressed that Russian Kyrgyz Development Fund and OJSC “Guarantee Fund” must provide access to financing for projects directed to support for agricultural producers including export-oriented and finally directed to regional development.
“Our country tries to enter market of other countries. Entry of Kyrgyzstan into the Eurasian Economic Union has strengthened competition in export of domestic products. Only producers, who work with new technologies, have enough funds and can stay at market, can stand high competition. The government goal is to support and provide “long and cheap” loans for increasing competitiveness of domestic products, implementing innovations, material-technical base update, production extension”, – said Sooronbai Zheenbekov.
President stressed that in regions he had meetings with entrepreneurs who had good projects, but without collateral they could not obtain loans. These projects remained unrealized.
“While we have loan resources to support them. Your funds play a significant role in financial sector of economy and are a key factor in GDP growth and export in Kyrgyzstan.”
However, RKDF when financing projects made imbalance in the coverage of regions. Low cost or lack of collateral make a group of rural people unattractive for traditional banks. It is necessary to revise the financing policy and pay more attention to the development of regions’ welfare,” – the President said.
President Sooronbai Zheenbekov reminded, that when he was a prime minister, open joint stock company “Guarantee Fund” was created to assist entrepreneurs in obtaining necessary loan amount in case of insufficient collateral.
He recommended to “Guarantee Fund” considering Decree on “the announcement of 2018 – the Year of Regional Development” to assist regional entrepreneurs in access to financing of their projects including export-oriented productions with other financial institutions of the country. Joint system work will help to promote entrepreneurship, create new jobs, that will finally reduce internal and external migration.
The chairman of the Board of Russian Kyrgyz Development Fund Erkin Asrandiev and the chairman of the Board of OJSC “Guarantee Fund” Malik Abakirov stressed that they would enhance joint work for regional development.
“In 2018 RKDF approved 781 projects in total amount of USD 261,46 million. We will make effort to find and realize projects related to production in regions taking into account the specificities of each region. We will make effort to create favourable conditions for financing in agricultural industry,” – Erkin Asrandiev said.
“For 14 months of activity from November 2016 OJSC “Guarantee Fund” issued 237 guarantees in total amount of KGS 248 million,” – Malik Abakirov informed.
“When issuing guarantees, we pay special attention to rural entrepreneurs. More than half of our guarantees are issued in rural areas,” – added Malik Abakirov
In conclusion President Sooronbai Zheenbekov added that these Funds with the state banks should continue actively participate in modernization of economy of the Kyrgyz Republic by financing projects in regions of priority to the state.
Decree of the President of the Kyrgyz Republic Sooronbai Jeenbekov from January 10, 2018 on the announcement of 2018 as the Year of Regional Development declares serious tasks for all state organizations and departments on improvement of social and economic potential of regions, people’s lives and development of small and medium-sized enterprises.
Favorable conditions for small and medium-sized enterprises are important for economic development of regions, the Decree states. Providing multiple investment opportunities will lead to the creation of new jobs, reduction of internal and external migration. The Government of the Republic is recommended to analyze the implementation of existing regional development programs by April 15, 2018 and in cooperation with local state administrations, local autho-rities make necessary adjustments, including:
– introduction of the cluster approach to the social and economic development of regions, that will create additional jobs, with emphasis on development of pilot cities and regions based on growth indicators;
– creation of conditions for supporting small and medium-sized enterprises in regions, attraction of investments, activation of financial institutions and funds on loaning projects aimed at economic development of regions and creation of jobs;
– encouraging projects aimed at strengthening specialization of regions, enhancing their competitive advantages, creating conditions for export of products produced in regions;
– in cooperation with the Apparatus of the President of the Kyrgyz Republic and civil society institutions, to work with international donors and development partners on issues to prioritize grant, technical and loan support for regional development projects.
The decree of the President of the Kyrgyz Republic makes it clear that the key to the successful development of Kyrgyzstan is stable and consistent social and economic development of regions, where the majority of population lives. This Decree directly concerns OJSC “Guarantee Fund”, which operates in all regions of the republic. Most guarantees are issued to rural entrepreneurs and processors of agricultural products. OJSC “GF” contributes to the implementation of the Decree of the President of the Kyrgyz Republic by issuing guarantees to local entrepreneurs, assisting in development of their business and business plans and implementing other regional development projects of OJSC “Guarantee Fund”.
According to materials of the website president.kg