OJSC “Guarantee Fund” and Kyrgyz Union of Industrialists and Entrepreneurs signed Memorandum on cooperation

On May 19 at OJSC “GF” office Memorandum on cooperation between OJSC “Guarantee Fund” (OJSC “GF”) and Kyrgyz Union of Industrialists and Entrepreneurs was signed. It was signed by the Chairman of the Board of OJSC “GF” Malik Abakirov on the one hand and the President of Kyrgyz Union of Industrialists and Entrepreneurs Kurmanbek Otorov on the other hand.

As Malik Abakirov noted, this document would contribute to expansion of linkages between OJSC “Guarantee Fund” and SMEs representatives included in Kyrgyz Union of Industrialists and Entrepreneurs.  “Our main objective is to provide entrepreneurs with guarantees for obtaining loans in commercial banks and we consider the fact that they are united in Kyrgyz Union of Industrialists and Entrepreneurs very positively,” – said M. Abakirov.

On the other hand, the President of Kyrgyz Union of Industrialists and Entrepreneurs Kurmanbek Otorov announced that the initiative for cooperation was mutual, as it was beneficial for both sides. The Union includes more than 20 legal entities consisting of thousands of entrepreneurs. Among them are potential customers of OJSC “GF”.

Indeed, according to OJSC “GF”, from 40% to 50% of entrepreneurs who apply for bank loans cannot obtain the necessary loan amount due to insufficient collateral. The research shows that the potential demand of market for guarantees is KGS 9.6 billion. We can only welcome the appearance of such a state company in our country established to assist entrepreneurs in obtaining loans for development, expansion of production and technical modernization.

“Cooperation within this Memorandum generally will affect the further activation of small and medium-sized enterprises, increase their financial possibilities and contribute to expansion of production capacities, creation of new jobs, allocation of tax and social payments to local budgets”, – assured Malik Abakirov and Kurmanbek Otorov.