Everybody needs guarantees. This is a must-have financial instrument to maintain small and medium enterprises. It is especially relevant for entrepreneurs from regions. The escalating indicators for issuing guarantees of OJSC “Guarantee Fund” indicate that more and more entrepreneurs are using them to acquire loans from partner banks.
Therefore, as of August 21, 2019, OJSC “Guarantee Fund” approved 948 guarantees for a total sum of 1.246 billion KGS. Partner banks provided 4.234 billion KGS in loans.
Since the inception of the year, 282 guarantees have been approved in the amount of 491.4 million KGS. Under the guarantees of OJSC “Guarantee Fund”, partner banks have provided 1.482 billion KGS in loans to entrepreneurs.
At the reception of the President of the Kyrgyz Republic.
On August 20, President of the Kyrgyz Republic S. Jeenbekov received the Chairman of the Management Board of OJSC Guarantee Fund – Malik Abakirov, the Chairman of the Management Board of the Russian-Kyrgyz Development Fund – Erkin Asrandiyev, the Chairman of the Management Board of OJSC “Ayil Bank” – Baktybek Shamkeev, and the Chairman of the Management Board of OJSC “RSK Bank” – Azizbek Omorkulov.
The heads of the country’s financial institutions provided information on the volumes of project financing and the issuance of soft loans for 7 months of 2019.
The Chairman of the Management Board of OJSC “Guarantee Fund”, Malik Abakirov, reported about the achieved indicators to the President. According to the result of the 7 months of 2019, OJSC “Guarantee Fund” issued 264 guarantees in the amount of 469 million KGS, which is 198 million KGS more than in 2018. The growth is 173%. Due to guarantees, banks issued loans worth 1.4 billion KGS, having increased by 156% juxtaposed to the last year.
In 2019, 78% of the funds of “Guarantee Fund” were allocated for lending and providing guarantees in the regions. Support for regional projects is the main priority area of OJSC “Guarantee Fund’s” activities, Malik Abakirov continued.
The head of OJSC “Guarantee Fund” also informed President that the Kyrgyz model of guarantee funds is interesting for CIS countries, as well as international financial institutions. Currently, the experience of Kyrgyzstan is used in the implementation of the guarantee fund in Tajikistan.
President S. Jeenbekov noted the need to continue to actively support entrepreneurs and export-oriented enterprises in the regions, financing start-ups of young entrepreneurs, and issuing quick loans through digital technologies.
The head of state once again focused on the need to channel financial resources and opportunities to the development of regions in order to create and popularize processing enterprises for the sale of population products – milk, meat, fur, wool, vegetables, fruits, and other crop products, creating additional jobs, which will reduce migration.
“All these measures are implemented within the framework of the state policy for the development of regions. It is you – the main financial institutions of the country – who are the engine of development of our regions and villages. Support regional entrepreneurs and actively finance their projects”, urged President S. Jeenbekov.
Photos and Materials are taken from president.kg