Exchange Rates:
USD 79,60
EUR 92,99
KZT 0,185
RUB 0,998
(0312) 66-49-60, (0312) 62-53-79 office@gf.kg
  • Кыргызча
  • Русский
  • English
  • The participation of the Guarantee Fund in the implementation of the program “Financing of Entrepreneurship Entities”

    On June 10, 2020, the Government of the Kyrgyz Republic adopted a Resolution on the approval of the Program “Financing of Entrepreneurship Entities” aimed at restoring and ensuring economic and social stability, supporting business entities in the context of the spread of coronavirus infection.

    The program provides for assistance to SMEs by issuing loans in the amount of 14 billion KGS at the initial stage. In the future, it is planned to increase the financial resources aimed at supporting entrepreneurs up to 40 billion KGS.

    A very important role in the implementation of this program is played by the Guarantee Fund. In case of insufficient collateral from potential borrowers, the latter can apply to the Guarantee Fund with an application for a guarantee for a loan from partner banks that have entered into cooperation agreements.

    Within the framework of the program “Financing of Entrepreneurship Entities”, the Guarantee Fund has provided more than 10 guarantees for a total amount of over 38 million KGS, and the total amount of loans issued under the guarantees amounted to over 85 million KGS.

    Let us recall the priority business sectors provided for by the program “Financing of Entrepreneurship Entities” taking into account the following factors:

    • assistance in the preservation of existing and creation of new jobs in the face of an increase in the number of unemployed;
    • support for the most economically efficient business areas to form the largest possible contribution to the country’s GDP growth;
    • support for business areas that have a multiplier effect on the development of other types of economic activity;
    • support for export-oriented enterprises;
    • the need to improve the level of food security of the country;

    Providing the population and the health care system with protective equipment and the most demanded medicines of domestic production.

    Within the framework of the Program “Financing of Entrepreneurship Entities”, preferential loan funds will be provided for such areas as:

    • tourism;
    • light industry;
    • pharmaceutical industry;
    • freight transportation;
    • manufacturing and processing enterprises, including enterprises of the agro-industrial complex;
    • manufacturing industry, excluding the mining industry.

    The program “Financing of Entrepreneurship Entities” provides for the following types of loan products:

    1. Acquisition, renewal, expansion and modernization of fixed assets (for fixed assets).
    2. Purchase of raw materials, components, spare parts (for working capital).
    3. Purchase, renewal, expansion and modernization of fixed assets (fixed assets), purchase of goods, raw materials, components, spare parts (working capital) by SMEs using components of digitalization of tax procedures.
    4. Refinancing of loans to industrial, manufacturing and processing industries, with the exception of the mining industry.
    5. Microcrediting on an unsecured basis.

    Lending conditions vary and depend on the selected loan product, but it must be said that they are much more acceptable than the conditions of loan products offered by financial institutions outside the framework of the above program:

    • The amount of loans provided varies from 150 thousand to 30 million KGS;
    • Terms – from 1 to 5 years;
    • Interest rate – from 4 to 14%;
    • Grace period for the principal amount – from 3 to 18 months.

    To date, 10 banking institutions of the country are involved in the implementation of the program “Financing of Entrepreneurship Entities”, which successfully cooperate with the OJSC “Guarantee Fund”. The total number of partner banks of the fund has reached 14. These are OJSC “Aiyl Bank”, OJSC “RSK Bank”, OJSC “CB Kyrgyzstan”, CJSC “Bank of Asia”, CJSC “Finca Bank”, “Kompanion Bank”, CJSC “Demirbank”, OJSC “Halyk Bank Kyrgyzstan”, OJSC “Bakai Bank”, OJSC “Optima Bank”, CJSC “KICB”, OJSC “Keremet Bank” and the Russian-Kyrgyz Development Fund.

    ФСП