In 2019, on behalf of OJSC “Guarantee Fund”, the country’s entrepreneurs issued 946 guarantees in total of 932 million KGS, most of which are aimed at regional projects. The information was announced on January 14 by the Chairman of the Management Board of OJSC “Guarantee Fund” Malik Abakirov.
According to data, over the past year, the authorized capital has increased from 582 million KGS to 1.132 billion KGS, an increase of 195%, 946 guarantees were issued and showed an increase of 226% compared with figures for 2018.
“The number of guarantees issued exceeded by 150% the capital of OJSC “Guarantee Fund”, the lion’s share of guarantees was sent to the regions. Over the past year, the total amount of guarantees amounted to 932 million KGS, which is 182% more than in 2018. In 2020, we plan to increase the total amount to 1 billion 200 million KGS. In monetary terms, in all regions, the excess of the amounts of issued guarantees ranged from 108% to 300% compared to 2018,” he declared.
Touching upon the main direction of issued guarantees, the Chairman of the Management Board of OJSC “Guarantee Fund” said that special attention was paid to the areas of processing, construction of logistics centers and slaughterhouses.
Last year was very productive for us and for the country’s processing industry as a whole. In order to implement the Head of State’s policy on the development of regions, the main deviation was made specifically on regional projects. As significant examples, it is possible to note a textile factory in Osh region that is export-oriented. Also, the rubber shoe factory in Bishkek, the plastic pipe factory in Osh, which supports the implementation of the “Taza Suu” project in the regions. New enterprises were opened, the number of jobs in the regions increased”, he declared.
In conclusion, Malik Abakirov noted that OJSC “Guarantee Fund” will continue its activities aimed at supporting the country’s export potential.
On January 14, President of the Kyrgyz Republic, Sooronbay Zheenbekov held Erkin Asrandiev, the Chairmen of the management board of the Russian-Kyrgyz Development Fund (RKDF), Baktybek Shamkeev, OJSC “Aiyl Bank”, Malik Abakirov, OJSC “Guarantee Fund”, and Azizbek Omorkulov, OJSC “RSK Bank”.
The head of state emphasized that the priority areas of activity of the country’s financial institutions should be pillar for the processing, sewing and textile industries, and tourism, as well as small energy projects, and the development of trade and logistics infrastructure. He particularly highlighted the scope of the processing industry, including the processing of meat, milk, wool, and leather, which is the main raw material in rural areas.
The President emphasized that within the framework of the state policy for regional development, emphasis should be placed on supporting export-oriented enterprises. “Increasing export potential and supporting these areas will help creaser new jobs in regions, and reduce internal migration. It is important to prevent corruption in the implementation of your projects in regions, and to support entrepreneurs I need of soft loans”, states the President.
The leaders of the country’s financial institutions provided information on the volumes of project financing and the issuance of soft loans for 2019. The Chairman of the Board of RKDF, Erkin Asrandiev, said that following the results of last year, the fund approved 724 projects worth 77.5 million USD. Compared to 2018, this indicator grew by 80%. Of the total number of approved projects, 88% were in country’s regions.
OJSC “Aiyl Bank” issued 53 957 loans in amount of 12 billion KGS in 2019. Of the total, 10.1 billion KGS, or 84% were allocated to finance projects in the regions. The share of regional financing increased by 9% compared to 2018. OJSC “RSK Bank” issued 10 335 loans for the total amount of 8.4 billion KGS in 2019. The share of loans issued in the regions of the country increased, they amounted to 5.5 billion KGS or 66% of the total loans.
Also in 2019, by OJSC “Guarantee Fund” 946 guarantees were issued in the amount of 921 million KGS. This is almost double the indicators of 2018, the growth of guarantee amount is 82%, the share of regional financing increased to 66%.
The leaders of the country’s financial institutions said that most of the funding came from projects in agriculture, processing, and industrial sectors.
The head of state emphasized that in 2020, the activities of financial institutions should also be focused on stimulating the development of regions.
He noted the particular importance of increasing the availability of loans in the regions, drew attention to the increased financing of projects in remote and border areas, and called for continued work of digitalization of banking services.
Plans for 2020.
On January 14,2020, a meeting of regional representatives of the fund was held at the head office of OJSC “Guarantee Fund” in Bishkek.
Regional representatives reported the work done during 2019. Malik Abakirov, the Chairman of the Management Board of OJSC “Guarantee Fund” positively assessed the results of the representatives’ work and, along with this, instructed to achieve even better success in new year. As for 2020 high levels of indicators are set, he emphasized.
In this regard, he gave the task to improve interaction with partner banks, to increase the issuance of loans under guarantees, as well as to conduct more seminars for entrepreneurs on guarantee obtaining issues.
It worth to be noted that from January 21, the Chairman of the Management Board of OJSC “Guarantee Fund Malik Abakirov goes on business trip throughout the regions of the Kyrgyz Republic.