Inside the Government of the Kyrgyz Republic.
The Prime Minister of the Kyrgyz Republic, Mukhammedkalyi Abylgaziev, at the meeting on September 11, stated that the mechanism for implementing the Agricultural Financing Program should be amended to prevent cases of fund misuse. Thus, according to the head of the state, a new project has been developed which involves the introduction of two categories.
The first category is “Agricultural Financing – Farmer”, which is to be socio-oriented and intended for small businesses to receive unsecured group loans. The second category is “Agricultural Financing – Cluster”. This category will be aimed at developing the cluster potential of the region with the opportunity of receiving up to 10 million KGS. Simultaneously, the very model of financing a new project will alter.
Statistics illustrate that, over the course of 8 months, the number of issued guarantees by the fund for a term up to 1 year was 44, from 1 to 2 years – 155, from 2 to 3 years -87, 3 and more years – 7. The most popular guarantee term, thus, is 1 to 2-year period.
As of September 11, 2019, OJSC “Guarantee Fund” approved 958 guarantees in the total amount of 1.274 billion KGS. The amount of loans received by entrepreneurs in partner banks summed to 4.334 billion KGS.
Since the start of this year, 302 guarantees have been approved in the sum of 519.3 million KGS. Partner banks, under the guarantees of OJSC “Guarantee Fund”, approved loans in the amount of 1.581 billion KGS.
The real contribution of businessmen and entrepreneurs of various industries lies behind these figures, both to enforcing their material and technical situation and to the local infrastructure, creating workplaces, and developing the country’s export potential.
Those who are seeking to receive guarantees can contact the office of OJSC “Guarantee Fund”, the regional representatives of the fund, as well as the partner banks and their local branches: OJSC “Ayil Bank”, OJSC “RSK Bank”, OJSC CB “Kyrgyzstan”, CJSC “Bank of Asia”, CJSC “FINCA BANK”, CJSC “Companion Bank”, CJSC “Demir Bank”, CJSC “KICB” OJSC “ Halyk Bank Kyrgyzstan”, CJSC “BTA Bank”, OJSC “Bakai Bank”, and OJSC “Optima Bank”.
Aid to Villagers.
During 7-year period, more than 90 thousand farmers received soft loans in amount of 34 billion KGS. 68% of the total loans have been directed to livestock, 17% to processing, the remaining 15% to the development of crop production. At the same moment, the demand for credit resources is increasing, and state-owned banks, via which the project is financed, cannot cover all the needs, the website www.gov.kg reports on September 11, 2019.
It is worth to note that OJSC “Guarantee Fund” is a bound participant in the implementation of state programs of concessional financing, such as: “Agriculture Financing”, Financing of Export-oriented and Import-substituting enterprises”, “Financing of business entities to improve the quality and safety of products” etc.