Only recently, many Kyrgyz entrepreneurs could not obtain bank loans in full due to the lack of collateral, that forced them to take smaller loan amounts or use expensive borrowed funds of other financial and loan institutions. In the latter two cases, this entailed great difficulties in implementation of business projects.
From the beginning of establishment of OJSC “Guarantee Fund” in 2016, entrepreneurs have a possibility to obtain such a financial instrument as a guarantee.
For two and a half years of practical activity, hundreds of entrepreneurs in all regions of Kyrgyzstan have received guaranteed loans amounting to KGS billions. Thus, from the beginning of its activities and as of May 30, 2019, 845 guarantees were approved in the amount of KGS 1.046 billion. Partner banks approved guaranteed loans in the amount of KGS 3.605 billion.
From the beginning of this year, 189 guarantees were approved in the amount of KGS 291.5 million. Guaranteed loans approved by banks amounted to KGS 853.5 million.
Thanks to guarantees and loans, entrepreneurs implement business plans and contribute to the socio-economic development of the regions. The total contribution to the economy in the amount of KGS 3.6 billion undoubtedly testifies to the correctness of the guarantee system establishment in Kyrgyzstan.