For seven and a half months of this year, OJSC “Guarantee Fund” provided more guarantees than for the entire 2019
On March 18, 2020, the first cases of coronavirus infection were recorded in the country. On March 22, a decision of the Government of the Kyrgyz Republic introduced an emergency regime, and on March 25 a decree was signed on the introduction of a state of emergency in certain territories of the republic and a curfew.
The spread of the infection affected all sectors of the life of Kyrgyz citizens and had a strong negative impact on the country’s economy. With the introduction of restrictive measures, representatives of SMEs faced serious difficulties.
Despite the very difficult situation, in order to mitigate the consequences of the spread of COVID – 19 on the activities of SMEs, the government made everything to develop and implement anti-crisis measures, one of which was to change the terms of repayment of loans, both the principal amount and interest payments.
One of the most significant measures was the approval and start of implementation of the government program “Financing of Entrepreneurship Entities”, the budget of which amounted to 14 billion KGS. The program is aimed at restoring and ensuring economic and social stability, supporting business entities in the context of the spread of coronavirus infection. In the implementation of this program, an important role was assigned to the Guarantee Fund, whose role is to provide guarantees to SMEs in case of insufficient collateral.
Even in the current situation due to the spread of coronavirus infection, as of today, the Guarantee Fund confidently stepped over the planned number of guarantees, which should have been issued after eight months – 953 guarantees. Moreover, in just incomplete seven and a half months of 2020, the Guarantee Fund, having provided 983 guarantees, acted as a guarantor for obtaining loans in the amount of more than 1.8 billion KGS, which exceeded the number of guarantees provided for the entire 2019, which was 946.
More than 95% of the total number of guarantees provided were directed to support regional SMEs.
OJSC “Guarantee Fund” intends to make every effort to provide the necessary support for the country’s entrepreneurs in such a difficult period and to fulfill the tasks to achieve the goals of minimizing the risks for SMEs caused by the pandemic and its consequences.