Under the Year of Regional Development and Digitalization of the Country.
From the beginning of 2018, 25 guarantees were approved in the amount of KGS 54.4 million. The volume of loans approved by banks amounted to KGS 136.4 million. The amounts of guarantees and loans doubled over the last week. Great completion of the working week!
Among the recipients of loans are livestock farmers from At-Bashy, industrialists and builders of high-rise buildings from Bishkek, and other enterprises.
In total, for the period of the activities and as of February 8, 2019, 681 guarantees were approved in the amount of KGS 809.4 million. The volume of loans approved by banks amounted to KGS 2.888 billion.
OJSC “Guarantee Fund” assists entrepreneurs in the implementation of business plans, providing them with guarantees for obtaining bank loans in case of insufficient collateral. All work is carried out in accordance with the adopted development strategy of OJSC “GF” for 2019-2023.
In 2019, the activities of OJSC “GF” take place under the Year of Regional Development and Digitalization of the Country, declared by the President of the Kyrgyz Republic S. Jeenbekov.
In the first decade of February, the process of issuing guarantees shows an increase in their number and amount. That serves as a good indicator of successful work on supporting entrepreneurs throughout the year. Guarantees of OJSC “GF” provide support in the present and give confidence in the future!
On February 7, 2019, the amount of approved guarantees exceeded KGS 800 million and reached KGS 807.3 million. In total, 680 guarantees were approved, and loans approved by partner banks amounted to KGS 2.883 billion.
From the beginning of the current year, 24 guarantees were approved in the amount of KGS 52.3 million. The volume of bank loans amounted to KGS 131.1 million.
In which industries and in which regions are February guarantees issued? For example, in the agricultural industry of the Naryn region 2 guarantees are issued; in the trade sphere of the Osh region 1 guarantee is issued; 3 guarantees are provided to Bishkek entrepreneurs engaged in industry, construction and trade.
This is the success story of Tologon Ibraev, who, thanks to the support of OJSC “Guarantee Fund”, is close to his dream of creating a large enterprise of tractor production in Kyrgyzstan
OJSC “Guarantee Fund”: SMEs support
Tologon Ibraev is the founder and director of “Dos TJM” LLC, which manufactures “Topoz” tractors. He is from the village of Shamshi of the Kochkor district of the high-mountainous Naryn region. In March 2019, he will celebrate his fiftieth anniversary.
As he remembers himself, he has always showed interest in tractors and combines, trucks and other agricultural machinery that made up the technical park of the local economy.
After serving in the army he worked as a driver. He graduated from the Faculty of Management of I. Arabaev Kyrgyz State University.
Until 1995, Tologon worked as the chief engineer of the firm “ERT”, engaged in agriculture and processing of products, since 1995 he worked as the director. By that time, he was a co-founder of the firm “Dyikan Plus”, then in 2010 he founded “Dos TJM” LLC.
Initially, “Dos TJM” repaired tractors, plows, cultivators and other equipment. Gradually, Chinese-made tractors began to arrive for repairs. In 2014, Tologon came up with the idea of importing spare parts from China, as well as the tractors themselves, especially since our farmers and peasant farms had a steady demand for equipment of various modifications.
This is how an important stage began in the life of Tologon, that predetermined the fateful choice associated with the dream of creating a large enterprise for the production of tractors.
Choosing a strategic partner
Tologon visited China, where he visited about 30 factories producing tractors. He chose the Chinese-German-Italian company Deutz-Fahr, located in Shanghai, and supplying products to Europe.
Successful cooperation, valuable accumulated experience contributed to obtaining a certificate from Deutz-Fahr for the assembly of tractors for “Dos TJM” LLC. Next, the company received a patent from “Kyrgyzpatent” for a brand “Topoz”.
From 2014 to 2018, the company assembled 50 tractors of various modifications. Buyers were attracted by warranty for 1 year to 5-year service period.
Big plans for the future, primarily for the expansion of the production base, led to the cooperation with Aiyl Bank and OJSC “Guarantee Fund”, thanks to which they managed to acquire the former production territory in Kant district. At the end of 2018, the first 4 tractors were assembled here.
Ahead, Tologon has big plans – building a case for installing an assembly line, opening a foundry in which shells will be cast, teeth for milling machines of various types, creating workshops for making bodies and cabs, and assembling equipment.
In total, according to the development strategy, by the end of 2019, “TJM” LLC will produce from 50 to 100 tractors, as well as various types of attachments.
Another equally important strategic task facing the company is the production of tractors with an electric motor. Today, the company receives applications from farmers for the purchase of such equipment.
The team currently has 14 people, all highly qualified specialists and a wide profile.
The work of a director requires commitment and dedication. The family of Tologon Ibraev consists of his wife and two children of school age. The family understands his workload, delays at work and frequent business trips.
In turn, he is grateful to his family for support, comfort and cosiness at home. It is very important for a man, considers Tologon Ibraev.
In accordance with the agreement concluded between OJSC “Guarantee Fund” and “Dos TJM” LLC, OJSC “Guarantee Fund” participates in managing the company’s finances, formulating development strategies, including business strategies, attracting investments and working with investors, donors, and banking structures .
SMEs support instrument.
From the beginning of its activities and as of February 5, 2019, OJSC “GF” approved 676 guarantees in the amount of KGS 780.5 million. The amount of loans approved by partner banks amounted to KGS 2.816 billion.
Since the beginning of 2019, 20 guarantees have been approved in the amount of KGS 25.5 million. Bank loans amounted to KGS 64.2 million.
Thanks to guarantees, social and economic tasks are solved, new ones are created and existing jobs are supported. Among the recipients of guarantees are our active women entrepreneurs and exporting enterprises.
In addition to the own funds of OJSC “GF”, last year it attracted two loans of KGS 100 million each from the RKDF. The first was successfully disbursed in the same year. Since the autumn of last year, a second loan is in process of disbursement. Guarantees have already been issued for 9 projects for a total amount of KGS 16.9 million.
Funds are sent in accordance with the loan agreement to expand the coverage of guarantee support for regional entrepreneurs.
On January 31, 2019, a press conference was held at the Kabar news agency by the Chairman of the Board of OJSC “Guarantee Fund” Malik Abakirov with the participation of the representatives of the leading media “Kabar”, “Ala-Too-24”, “Birinchi Radio”, “KTRK”, “ElTR”, “Pyramid”, “AKI-press”, radio “Maral”, newspapers “Erkin-Too”, “Bagyt.kg” and others. It was dedicated to the results of the activities of OJSC “GF” for 2018.
The Chairman of the Board of OJSC “Guarantee Fund” (OJSC “GF”) Malik Abakirov told reporters about the results on the activities on support for small and medium enterprises (SMEs) of the republic, providing entrepreneurs with access to financing. The main direction of the activities is the provision of financial guarantees to entrepreneurs on case of insufficient collateral for bank loans.
Capitalization of OJSC “GF”
In accordance with the order of the Government of the Kyrgyz Republic dated June 25, 2018 No. 217-p, the authorized capital of OJSC “GF” increased by KGS 300 million and amounts to KGS 582 million. At the end of 2018, the assets of OJSC “GF” amounted to KGS 819.7 million, of which own capital was KGS 613 million.
About guarantees for entrepreneurs
In 2018 OJSC “Guarantee Fund” provided substantial support to SMEs, providing a total of guarantees in the amount of KGS 507 million. The volume of bank loans under guarantees amounted to KGS 1.779 billion. From the beginning of its activities in 2016 and as of December 31, 2018, Open Joint Stock Company “GF” issued 656 guarantees in the amount of KGS 755 million, and the amount of loans received by entrepreneurs under the guarantees of the Fund amounted to KGS 2.752 billion. According to the results of 2018, a profit was received in the amount of KGS 25.6 million, while the plan was 14.8 million, an increase reached 173 percent.
Thanks to guarantees, 1225 new jobs were created, 5887 existing ones were supported. Export-oriented and import-substituting projects were issued 48 guarantees for KGS 141 million. Women entrepreneurs were issued 196 guarantees in the amount of KGS 224 million.
Guarantees were provided in the following sectors: agriculture and fishing – 20%, manufacturing – 18%, processing of agricultural products – 14%, trade – 24%, tourism – 10%, transport – 6%, services – 7%, construction – 1%. In terms of regions, the quantitative distribution of guarantees is as follows: Bishkek city – 25%, Chui region – 17%, Naryn region – 17%, Osh region – 12%, Jalal-Abad region – 7%, Batken region – 7%, Issyk-Kul region – 8%, Osh – 4%, Talas region – 3%.
In 2018 OJSC “GF” twice received a loan from RKDF amounting to KGS 100 million each. The first was successfully disbursed in the same year. The amount of guarantees issued for 65 projects amounted to KGS 100.5 million.
In September 2018, a new loan agreement was signed with the RKDF. As of January 1, 2019, 13 percent of the loan was disbursed. The amount of guarantees issued for the implementation of 5 projects amounted to KGS 13.2 million.
In accordance with the agreement, these loans are directed to support regional entrepreneurs.
About the program implementation of OJSC “GF”
OJSC “GF” implements projects under the program “One region – one enterprise”. The main goal of the program is to open new enterprises or new directions in existing enterprises in the regions. Within the program, 27 projects are being implemented. The amount of guarantees provided for OROE projects, including export, is KGS 80 million.
The program “Restoration of agricultural machinery in the Kyrgyz Republic” was developed and is being implemented, in the framework of which DOS TJM LLC will assemble Topoz tractors. In 2018, 4 tractors were manufactured. Under the guarantee of OJSC “GF”, a loan was obtained from Aiyl Bank to expand production. Also, with the support of the GF, the company moved to a new production base in Kant and intends to start a stable production of tractors of various modifications for farmers and peasant farms.
The company plans to produce attachments and the gradual localization of production. In the future, the production of electric tractors will be arranged here.
At the end of the press conference, Malik Abakirov, the Chairman of the Board of OJSC “GF”, answered the journalists’ questions. Then a presentation of the book “Access to finance for SME: Guarantee Fund” took place. The authors are Malik Abakirov and Syrgak Abakirov. The book covers the history and formation of guarantee funds in Kyrgyzstan and the role of small and medium enterprises in the economy. It also provides international experience in the provision of guarantees.
Guarantees for entrepreneurs.
In January, entrepreneurs demonstrated quite high activity despite the usual passivity at this time of the year. This month, 19 guarantees were approved in the amount of KGS 25.2. Under these guarantees, partner banks approved loans in the amount of KGS 63.5 million.
In total, from 2016 and as of January 31, 2018, OJSC “GF” approved 675 guarantees in the amount of KGS 780 million. The volume of loans approved by partner banks amounted to KGS 2.815 billion.
In the Year of Regional Development and Digitalization of the Country, extensive explanatory work is being conducted among regional entrepreneurs, as well as employees of local branches of partner banks on mechanisms for issuing loans under guarantees.