From the beginning of its activities at the end of 2016 and as of April 30, 2019, OJSC “GF” approved 800 guarantees totaling KGS 980 million. Partner banks approved guaranteed loans to entrepreneurs in the amount of KGS 3.408 billion.
From the beginning of the current year, 144 guarantees were approved in the amount of KGS 225.2 million. The amount of guaranteed loans reached KGS 655.9 million.
We kindly remind you that entrepreneurs of all industries and all regions can apply for guarantees. We inform, that guarantees were issued in the following branches:
- animal husbandry
- crop production
- processing of agricultural products
- transport activities
Among the partners of OJSC “GF there are 11 commercial banks with numerous branches in all regions of the country, and the Russian-Kyrgyz Development Fund (RKDF).
Thanks to guarantees of OJSC “GF”, Kyrgyz entrepreneurs have possibility to receive loans in the partner banks in full, that contributes to the successful implementation of their business projects. In turn, the implementation of projects has a positive impact on the socio-economic development of the regions, primarily on employment and reducing migration, and ultimately reducing poverty.
In total, since the start of activities and as of April 26, entrepreneurs received 791 guarantees in the amount of KGS 969.3 million. Partner banks approved guaranteed loans in the amount of KGS 3.366 billion.
The current year, as of April 26, GF approved 135 guarantees in the amount of KGS 214.3 million. The guaranteed loans approved by partner banks amounted to KGS 614 million.
OJSC “GF” conducts continuous and consistent work on providing advice to entrepreneurs, explaining the guarantee conditions and mechanisms. For example, in the 1st quater, the Consulting Department conducted 20 consultations for SMEs, and several business plans were developed. Regional representatives held 32 workshops to explain the mechanisms for issuing guarantees for entrepreneurs and bank employees. Also 24 meetings were held with representatives of local authorities.
The Year of Regional Development and Digitalization of the Country.
On April 25, Talant Tuloberdiev, Deputy Chairman of the Board of the OJSC “Guarantee Fund”, took part in the next round table on the topic “Access to Finance”, organized by the NBKR and held jointly with the authorized representative of the Government of the Kyrgyz Republic in Naryn region within the framework of the Year of regional development and digitalization of the country announced by the President S. Jeenbekov.
T. Tuloberdiev, Deputy Chairman of the Board of the OJSC “GF”, presented the information on the activities of the Fund to promote small and medium enterprises in access to finance and consulting services provided to entrepreneurs in all regions of Kyrgyzstan and the implementation of the “One Region – One Enterprise” program developed by the Fund, which supported 32 regional projects. Kamchybek Chukuev, the regional representative of the GF in Naryn region, also participated in the round table.
Dear our visitors! We inform that the book “Access to Finance for SME: Guarantee Fund” (by Malik Abakirov and Syrgak Abakirov) can be purchased at Raritet bookstores (Razzakov Street) and Nuska (Erkindik Avenue).
This relevant and useful book is for everyone who are interested in the development and promotion of SME in Kyrgyzstan.
In the meantime, we would like to introduce the opinions of our bankers on the guarantee system, which are stated in this book.
Nurlan Aldayarov, member of the Board of CJSC “KICB”, ex-Chairman of the Board of CJSC “Bank of Asia”:
CJSC “Bank of Asia” has been working with regional guarantee funds since 2011 and continues successful cooperation with the OJSC “Guarantee Fund”. The guarantee issue mechanism of OJSC “Guarantee Fund” is a successful example of state support for small and medium enterprises through the possibility of expanding crediting, promoting entrepreneurship in regions of the country where there is a problem of providing the necessary collateral, reducing the banks’ credit risks and increasing issuing loans. Partnership in the issue of loans secured by guarantees is also one of the additional competitive advantages for Bank of Asia, that serves as a good support for bank customers in the context of the need to increase financing.”
Margarita Cherikbaeva, Chairman of the Board of CJSC “Finca Bank”:
“Guarantee funds are an effective tool for hedging both lender’s risks and borrower’s risks, acting as an intermediate protective mechanism. I would emphasize 2 main points: 1) A lender’s risk reduction has a positive effect on the pricing strategy of a financial institution and may entail a decrease in
interest rates; 2) Guarantee funds reduce barriers to crediting, as the clients with a lack of own collateral can use guarantees and receive the necessary loan amount.”
From the beginning of its activities as of 24 April 2019, the OJSC “GF” approved the issue of 787 guarantees to entrepreneurs in the amount of KGS 961.9 million. Partner banks approved loans in the amount of KGS 3,360 billion.
The current year, 131 guarantees were approved for this date in the amount of KGS 206.9 million. The loans approved by partner banks exceeded 600 and amounted to KGS 607.9 million.
From the beginning of the month of April, 41 guarantees were issued in the amount of KGS 71.6 million, the amount of guaranteed loans reached KGS 246.4 million.
Most of the guarantees were issued to entrepreneurs – clients of Aiyl Bank (17), CB Kyrgyzstan (9), RSK Bank (8), KICB (2), and other banks (BTA Bank, Bakai Bank, Bank of Asia, Kompanion, FINCA Bank).
Entrepreneurs engaged in agriculture received 15 guarantees, agricultural processors – 6, production workers – 6 guarantees. In the trade 9 guarantees were provided, the transport industry – 2 guarantees, the rest on construction, tourism and services.
In what spheres have entrepreneurs used April guaranteed loans? Most of them invested in animal husbandry (13), and also to grow grain crops, produce flour, food, building materials, textile production, cotton and wool processing, car maintenance and repair, and trade.
As of April 24, OJSC “GF” disbursed 47 percent of the RKDF loan (KGS 100 million). 29 guarantees were provided to regional entrepreneurs in the amount of KGS 47.4 million.