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  • The Prime Minister Muhammadkaliy Abylgaziev: Improving access to finance for small and medium-sized enterprises is the basis for the development of regions

    The Prime Minister Muhammadkaliy Abylgaziev: Improving access to finance for small and medium-sized enterprises is the basis for the development of regions

    The Prime Minister Muhammadkaliy Abylgaziev held a working meeting devoted to the discussion of the current activities of OJSC “Guarantee Fund” and the state enterprise “The State Lottery Company”.

    The Head of the Government noted that OJSC “Guarantee Fund” was established to assist entrepreneurs who have promising projects, but do not have sufficient collateral to obtain a loan for their implementation.

    “The Government adopted the Concept of Regional Policy for the period 2018-2022, which is aimed at creating support centers for growth based on 20 pilot cities in the country. Within its implementation, we must properly place emphasis and promote priority areas, including the development of the agro-industrial complex, processing industry, tourism, trade. In 2018, it is necessary to lay the foundation for future systemic changes in the development of regions. The Fund in its work should give priority to support projects aimed at creating new industries in the regions, ” – said Muhammadkaliy Abylgaziev.

    The Chairman of OJSC “Guarantee Fund” Malik Abakirov informed about the current activities and plans for the next few years.

    “Our fund works for 1.5 years. During this time, more than 500 new jobs, 22 export-oriented projects worth KGS 63 million were created, 440 guarantees were issued. Approved guarantees for types of business accounted for 45% for small and medium businesses and 15% for large businesses. One of the achievements of the fund is assistance in the creation of 15 new enterprises under the program “One region – one enterprise”. According to results of 2017, the fund’s net profit amounted to KGS 12.6 million with a plan of KGS 8.5 million, ” – he said.

    The Prime Minister instructed to take the necessary measures to support the Guarantee Fund, including working with the National Bank of the Kyrgyz Republic on its entry into the founders by acquiring 49% of the Guarantee Fund and investing KGS 650 million in the authorized capital of the organization.

    “This step will improve the access to finance for small and medium-sized enterprises in case of insufficient collateral and will become a catalyst for entrepreneurship growth within the framework of 2018 as the Year of Regional Development announced by the President,” said Muhammadkaliy Abylgaziev.

    During the meeting, the presentation was also made by the director of the state enterprise “The State Lottery Company”, Talant Kalykov, who said that the launch of the lottery under the brand “Kyrgyz Loto” was planned for June-July 2018.

    “Currently, a program for the implementation, accounting and verification of lottery tickets and a number of other organizational issues are being developed. It should be noted that the state lottery is held to finance social projects, in particular, the development of education, science, culture and sports. In the near future we will begin active work, ” – said Kalykov.

    Muhammadkaliy Abylgaziev recommended that “TheState Lottery Company” think about the implementation of lottery tickets during the III World Nomad Games on the shore of Issyk-Kul Lake.

    The Head of the Government stressed that the Government will provide necessary support including financial support for the state enterprise “The State Lottery Company”.

    Information Support Department of the Government Apparatus of the Kyrgyz Republic



    The Asian Development Bank acknowledged the successful operation of guarantee funds of Kyrgyzstan and recommended implementation in the countries of Central Asia and the Caucasus

    High assessment from ADB.

    The model of functioning of guarantee funds of the Kyrgyz Republic on support and development of small and medium-sized enterprises is recognized by the Asian Development Bank (ADB) as a successful, sustainable and effective for entrepreneurs.

    In this regard, ADB decided to recommend that the countries of Central Asia and the Caucasus implement a system of guarantee funds on the basis of the Kyrgyz model.

             Reference. The initial authorized capital of OJSC “Guarantee Fund” was formed in the amount of KGS 282 million, including KGS 72 million were allocated from the republican budget and KGS 210 million (USD 3 million) was financial support of ADB.

             As for the capital of regional guarantee funds, it is formed from funds of local authorities.



    Seminars in regions.

    On May 24, 2018 employees of OJSC “Guarantee Fund” (OJSC “GF”) held seminars for employees of local branches of partner banks in the cities of Tokmok and Kara-Balta. The purpose of the already traditional seminars was to introduce representatives of banks, namely, loan officers, to the mechanism for using such a financial instrument as guarantees.

    As it is known, in the case of insufficiency of collateral for small and medium-sized businesses when applying to banks for a loan, OJSC “GF” provides a guarantee for the missing part of the collateral.

    In the city of Tokmok, the seminar was conducted by the Head of the Department of Guarantees and Product Development Erik Talasbaev. There were representatives of Tokmok and Karabalta branches of OJSC Bakai Bank and Tokmok branches of CJSC KICB. He told the bankers about the prerequisites for creating in the country a guarantee system and OJSC “GF”, the role and importance of the company for small and medium-sized enterprises in the country, mechanisms for interaction with commercial banks. In the course of questions and answers, the specialists of banks received exhaustive information about the terms of issuing guarantees, commission rates, currency and terms, the nuances of interaction between OJSC “GF”, entrepreneurs and partner banks.





    On the same day, a similar seminar was held in the city of Kara-Balta, Zhayil district. The seminar was conducted by the Head of the Department of Consulting and Information Services Aibek Davlesov. There were about 30 representatives of local branches of OJSC RSK Bank, CJSC FINCA Bank, CJSC KICB and others. Among them there were both chiefs and specialists of loan departments, as well as lawyers.

    Aibek Davlesov told the audience about the mechanisms for using guarantees and the terms of their provision, as well as the advantages they give to the bank. Firstly, loan risk is partially reduced, as part of the risk is assumed by OJSC “GF”. Secondly, the issuance of loans under guarantees has a positive effect on their revenues. After all, without guarantees, they would not issue a loan or give in a smaller amount.

    Aibek Davlesov also noted that due to the comprehensive activities of OJSC “GF” to increase the financial literacy of entrepreneurs, business training, facilitate the planning and organization of business, develop business plans, and search for sales markets, partner banks receive a trained quality clientele.

    Thus, OJSC “GF” and partner banks make a significant contribution to the support and development of small and medium-sized enterprises.

    The head of the Regional Development Department of OJSC “GF” Kamchybek Aliev took an active part in the organization of the trip and seminars,


    OJSC “GF” presented strategic programs

    OJSC “GF” presented strategic programs

    On May 17 2018 OJSC “Guarantee Fund” (OJSC “GF”) made a presentation on strategic programs directed to the creation of domestic machine building. At the presentation representatives of ministries, agencies, international organizations, partner banks participated.

    The chairman of the Board of OJSC “GF” Malik Abakirov opened the ceremony and told about strategic programs. One of the programs is called “Creating an automobile industry in the Kyrgyz Republic”. Its practical implementation will be an enterprise for assembling buses. “The need for a city buses is very high. As part of this program, we are planning to organize an assembly production in Bishkek together with Shydyr Jol LLC. All work is carried out in accordance with the developed strategy for the development of the automotive industry in Kyrgyzstan,”- the head of GF OJSC stated.

    For the sample a bus of Chinese manufacture, working on gas, is taken. The first 18 of these buses, delivered by LLC Shydyr Jol, already run along the 35th city route. A few months later, a production base will be created and the company will begin assembling the buses. It should be noted that the use of gas instead of gasoline and diesel fuel carries both environmental and economic benefits. And the issue of sustainability for Bishkek is crucial.

    In addition to the creation of the automobile industry, in the Year of the regional development OJSC “GF” has developed another ambitious Program – Restoration of Agricultural Machinery in the Kyrgyz Republic, further said Malik Abakirov: “In due time, as people of the middle and older generations remember, – balers of the plant of agricultural machinery named after Frunze were well-known for the whole Soviet Union. We also want to lay the foundation for such an enterprise with a large export potential, whose products will be of interest to consumers in neighboring countries. “

    As part of this program, GF supports Dyikan Plus LLC in the production of “Topoz” tractors of various models and attachments.

    The third program of OJSC “GF” – “Creation and development of electric vehicles in the Kyrgyz Republic” – is associated with the production of electric vehicles. This will be our response to the modern requirements of environmentally friendly and technological transport, Malik Abakirov continued. The more there is transport on electric traction, the purer the air in our cities and towns will be!

    President of the Chamber of Commerce and Industry of the Kyrgyz Republic Marat Sharshekeev, Deputy Minister of Transport of the Kyrgyz Republic Zhenishbek Nogoibaev, Director of the Agency for Promotion and Protection of Investments of the Kyrgyz Republic Adilbek uulu Shumkarbek, ex-director of the Kristall factory, author of various investment-attractive industrial projects Zharasul Abdraimov, member of the Advisory Council at the GF OJSC Bakhtiyar Fattakhov, member of the Board of KICB Bank Nurlan Aldayarov, Deputy Chairman of the Board of CJSC Bank of Asia Edil Ismailov, Director of Shydir zhol LLC Toktobubu Ouerhalika and, Director of LLC “Dyikan plus” Tologon Ibraev.

    All of them supported the actions of OJSC “GF”, personally its leader Malik Abakirov, aimed at implementing strategic programs for the whole country. The general leitmotif of their speeches was: “Good luck, “Guarantee Fund! “.

    Then, certificates for tractors were received by rural entrepreneurs from Alamudun, Kochkor and At-Bashy districts. Arablebek Abdrasulov, a farmer from the village of Acha-Kayin of the Ata-Bashy district, said that the villagers are in great need of such a technique since the cost, the proposed number of models and technical capabilities of the tractors satisfy them.

    Press service of OJSC “GF”

    May 18, 2018