As of May 8, the amount of 816 approved guarantees exceeded KGS 1 billion or USD 14 million. The amount of guaranteed loans approved by partner banks reached KGS 3.5 billion or nearly USD 50 million.
From the beginning of the current year, 157 guarantees were approved in the amount of KGS 244.8 million. The guaranteed loans approved by partner banks amounted to KGS 715.5 million.
The successful disbursement of the RKDF loan continues. As of May 8, 55% of the loan has been disbursed. 33 guarantees were issued in the amount of KGS 54.7 million. This loan is targeted and aimed at supporting regional entrepreneurs.
Behind these figures there is the real contribution of OJSC “Guarantee Fund” (the Fund) to the development of small and medium enterprises and the country’s economy as a whole. The Fund demonstrates steady development, as evidenced by the achievement of the plan and its over-fulfillment.
Ahead there is a lot of work on promotion of the guarantee system. Many Kyrgyz entrepreneurs still have problems when applying to banks for loans due to insufficient collateral (in cash, it is KGS billions).
Dear friends and colleagues! We kindly remind you that if you wish to have the book “Access to Finance for SME: Guarantee Fund” (by Malik Abakirov and Syrgak Abakirov), then you can purchase it at “Raritet” bookstores (Razzakov Street) and “Nuska” (Erkindik Avenue).
This relevant and useful book is for anyone interested in development and promotion of small and medium enterprises in Kyrgyzstan.
We bring to your attention the opinions of the representatives of the government agencies about the guarantee system.
Almaz Baketaev, First Vice-Mayor of Bishkek, former Deputy Minister of Finance of the Kyrgyz Republic:
“The process of development of small business and private entrepreneurship, an increase of their share in GDP, ensuring the output of their products to foreign markets require special attention from the state. Guarantee funds have a significant impact on the entrepreneurship development in the world. They have been successfully operating in many countries for a long time, providing loans to small enterprises. This practice thus not only provides support to existing small enterprises, but also encourages the establishment of new enterprises.
The guarantee fund system is a serious catalyst for the development of small and medium enterprises, and the use of the guarantee fund system in the programs of the Government of the Kyrgyz Republic to subsidize interest rates on loans to agriculture and processing, as well as to subsidize interest rates on loans to export-oriented and import-substituting enterprises, to finance HACCP implementation will improve the efficiency of the use of budget funds and dynamic development of SMEs. “
Daniyar Imanaliev, Head of the Department of the Apparatus of the President of the Kyrgyz Republic, former Deputy Minister of Economy of the Kyrgyz Republic:
“Governments around the world consistently take measures aimed at creating the most favorable conditions for doing business in their countries. Various reforms are being carried out, new mechanisms of support and development of domestic entrepreneurship are being introduced. The Government of the Kyrgyz Republic is also constantly taking measures to create the most competitive and attractive business conditions in the republic.
An important role in the development and promotion of entrepreneurship is played by financial instruments that ensure access to financial resources. In this regard, the Government of the Kyrgyz Republic, focusing on this area, relying on the high need of SMEs for guarantees, established the Open Joint-Stock Company “Guarantee Fund” in 2016.
The established “Guarantee Fund” and the further development of the guarantee system in the Kyrgyz Republic contribute to the development and strengthening of entrepreneurship in the country.
The OJSC “Guarantee Fund” is one of the organizations that form the support infrastructure for SMEs, actively assisting in the implementation of measures aimed at their development and promotion, implemented on the basis of program-targeted principles.”
Guarantees for SME.
Today OJSC “GF” performs an important socio-economic task, providing real support to small and medium enterprises (SMEs) in Kyrgyzstan, assisting them in implementing business plans, increasing employment, payments and taxes to the budget, and developing infrastructure.
All work is carried out in accordance with the approved Development Strategy of OJSC “GF” for 2019-2023. In 2019, activities of GF take place under the Year of Regional Development and Digitalization of the Country, declared by the President of the Kyrgyz Republic S. Jeenbekov.
From November 2016 and as of May 7, 2019, OJSC “Guarantee Fund” approved 810 guarantees in the amount of KGS 997.8 million. The guaranteed loan amount approved by partner banks reached KGS 3.463 billion.
From the beginning of 2019, 154 guarantees were approved in the amount of KGS 242.7 million. The guaranteed loans amounted to KGS 711 million.
OJSC “Guarantee Fund” demonstrates confident and progressive development. With each month, the number of recipients of financial guarantees is growing, an average of 20-30 requests from entrepreneurs arrive in a month. Including guarantees are provided to support women’s entrepreneurship, enterprises of export and import directions.
As it is known, OJSC “GF” issues guarantee in cooperation with 11 commercial partner banks. Together, these banks have over 230 branches in all regions of Kyrgyzstan.
Expanding the access of entrepreneurs to guarantees leads to an increase in production as a whole and to the further development of SMEs, which are the mainstay of the economy.