In a letter addressed to the Chairman of the Management Board of OJSC “Guarantee Fund”, Plenipotentiary Representative of the Government of the Kyrgyz Republic in Batken region, Akram Madumarov, expressed his sincere gratitude for the direction of the specialists of OJSC “Guarantee Fund” in Batken region for advising in the preparation of investment and business projects, as well as development programs.
Mr. Madumarov emphasized that the staff of OJSC “Guarantee Fund” for a short period of time reviewed and developed several important business projects for the region, which were subsequently selected and approved by the Competition Commission under the Government of the Kyrgyz Repubic.
The Plenipotentiary Representative also noted that he highly appreciated the contribution of OJSC “Guarantee Fund” to the social and economic development of Batken region.
Decision of Board of Directors.
This is the decision of the Board of Directors of OJSC “Guarantee Fund”, the meeting of which was held on November 22, 2019. The meeting in November was attended by all members of the Board of Directors headed by the Chairman –Kenzhetaev O.T., Karabaev U.M., Mamataliev A.M., Satymkulov M.Zh., Tashmatov Zh. B.
A meeting of shareholders in convened to discuss and decide on issues such as the creation of branches of OJSC “Guarantee Fund” in Jalal-Abad and Issyk-Kul regions, as well as the functioning of regional guarantee funds according to the law of the Kyrgyz Republic “On guarantee funds in the Kyrgyz Republic.”
The Board of Directors determined the date of the meeting to be December 25, 2019, and approved the voting ballots.
The memorandum on the use of the Kyrgyz model of guarantee funds in the Republic of Tajikistan was signed by the Chairman of the Management Board of OJSC “Guarantee Fund”, Malik Abakirov, and the Deputy CEO of “Takafful” Insurance Company, Farrukh Ergashev, on November 21, 2019.
Farrukh Ergashev visited Bishkek to study the Kyrgyz model of guarantee funds and the activities of OJSC “Guarantee Fund” to support entrepreneurs of the Republic of Tajikistan in obtaining a loan with a lack of collateral. “Takafful” in cooperation with its banks wants to introduce guarantees and insurance for Tajik entrepreneurs.
Farrukh Ergashev noted that “Takafful” also wants to adopt the experience of OJSC “Guarantee Fund” in providing guarantees in regions, and introduce the Kyrgyz model of guarantee fund in Khujand city, Tajikistan.
It is worth to note that this is the second time, when an organization wants to apply the Kyrgyz model of guarantee funds in Tajikistan. In Tajikistan, entrepreneurs need guarantees in business development and the National Bank of Tajikistan supports this initiative.
We remind that the Open Society Institute (Soros Foundation, Republic of Tajikistan), allocated 290 thousand USD as the authorized capital for providing guarantees for entrepreneurs.
In period between November 12 and 15, 2019, the Deputy Chairman of the Management Board of OJSC “Guarantee Fund”, Azamat Kozhobaev, and the Head of the Regional Development Department, Kamchybek Aaliev, were on a business trip in Osh region.
The main purpose of the business trip for OJSC “Guarantee Fund” employees was to complete the process of official registration of OJSC “Guarantee Fund” branch in Osh region.
This year, the grand opening of the branch of the fund in Naryn region has already taken place. In future plans of the fund is to open new branches in other large regions of Kyrgyzstan. These steps will contribute to expanding the coverage of guarantee and advisory support to local entrepreneurs.
Furthermore, Azamat Kozhobaev and Kamchybek Aaliev met with the Heads of affiliates of partner banks located in Aravan, Uzgen, and Kara-Kulzha districts of Osh region. During the meetings, presentations of guarantee products and interaction mechanisms were made when issuing loans under the guarantees of the fund.
At the end of the trip, employees of OJSC “Guarantee Fund” visited a sewing enterprise, opened in the region with the guarantee support of the fund. About 200 workers are now working in a large workshop. During the discussions, the employees of the enterprise and representatives of the administration noted the importance and timeliness of guarantee support for entrepreneurs, which contributes to the development of business in regions.
A working meeting was held recently in the Government of the Kyrgyz Republic on the implementation of the first sub-program of the Economic Diversification Promotion Program, supported by the ADB. The Chairman of the Management Board of OJSC “Guarantee Fund”, Malik Abakirov, participated in it.
As previously reported, the ADB approved a grant based on an action policy of 50 million KGS for the first sub-program of the Economic Diversification Promotion Program, which supports the efforts of the Kyrgyz government to diversify the economy through reforms. There will be two such sub-programs – in 2019 and 2021 (each worth 50 million USD).
On October 21, 2019, Jogorku Kenesh Committee on Budget and Finance approved a bill on ratification of a grant from ADB in amount of 50 million USD for the first sub-program of the Economic Diversification Promotion Program.
The program supports the efforts of the government of the republic to implement four priority areas for reform of the National Strategy for Sustainable Development for 2018-2040: improving the country’s trade and investment competitiveness, developing SMEs, promoting public-private partnerships, and developing skills related to the needs of industries.
According to the Chairman of the Management Board of OJSC “Guarantee Fund”, who participated in the meeting, he had previously met with ADB national consultant Kylych Dzhakypov and ADB representative Tony Daza. The issues of supporting SMEs, the successes achieved and the ways of further reforming of OJSC “Guarantee Fund” were discussed.
“With regard to the participation of OJSC “Guarantee Fund” in the implementation of the sub-program of the Economic Diversification Program in the development of SMEs, we offer a number of initiatives, including the establishment of the Institute for the Development of SMEs on the basis of OJSC “Guarantee Fund”, in conjunction with which the Bank should be opened to finance SMEs.
OJSC “Guarantee Fund” also plans to create a private equity fund, as yet another area of reform in support of entrepreneurship.
In addition, there are strategic plans for the enlargement of enterprises, that is, to facilitate the development of small enterprises into medium-sized, and medium-sized enterprises into large ones. Then, in the next 5 years, the fund plans to bring 50 enterprises of Kyrgyzstan to the level of the largest companies in Kyrgyzstan, using the possibilities of entering the capital, joint management of the enterprise.
The fund is confident that the cooperation between ADB and the Government of the Kyrgyz Republic will contribute to the growth of the country’s economy. OJSC “Guarantee Fund” will continue to provide comprehensive support to SMEs.