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    Dairy sector.

    The Order of the Government of the Kyrgyz Republic No. 148-p was issued on May 23, 2019, that identified OJSC “Guarantee Fund” as one of the participants in the implementation of the International Development Association (the World Bank) project Integrated Dairy Productivity Improvement. The agreement between the Kyrgyz Republic and the IDA was signed on August 10, 2017. It was ratified by the Law of the Kyrgyz Republic of December 28, 2017, No. 220 (25) and entered into the force on April 10, 2018.

    Guarantee Fund reached an agreement with the World Bank on the participation in this project implementation. Now the participation is officially supported by the government order. This demonstrates confidence in Guarantee Fund as a financial institution and recognition of its competence by international organizations and government agencies.

    Today, the dairy sector enterprises believe that their main issue is the insufficiency of highly productive dairy breeds, low volumes and milk quality among farmers. They believe that a large-scale, comprehensive work is required in this regard with the involvement of the government agencies, dairy enterprises, farming and business communities.

    Therefore, the goal of this project is to enhance dairy animal productivity and milk quality on beneficiary farms in the Issyk-Kul region. It comprises of four components. The first component, strengthening public and private services in the dairy sector will contribute to the program development objective by improving the public-private dialogue on private sector development issues, and by supporting the improvements in the breed stock (genetic quality) of the dairy cows. The second component, on-farm productivity enhancement will work towards the establishment of model dairy villages. The third component, farm-level investments objective is to promote investments in agribusiness, fostering backward and forward linkages in the dairy value chain and support supply chain infrastructure that create higher value. The fourth component, project management will cover the costs associated with project management, including monitoring and evaluation (M and E), and results assessment.

    As part of the farm-level investments component, Guarantee Fund will conclude agreements with farmers – members of borrower groups, monitor compliance with the loan repayment schedule, work with problem borrowers and be responsible for the loan repayment.


    The total amount of funding is USD 5 million (IDA), of which USD 2.25 million is a grant and USD 2.75 million is a loan. The project implementation period is from April 10, 2018 to December 31, 2020.

    The project executive agencies are the Ministry of Agriculture, Food Industry and Melioration of the Kyrgyz Republic and the Ministry of Finance of the Kyrgyz Republic. The project implementing agencies are the Agribusiness Competitiveness Center, the Credit Line Management Department of the Ministry of Finance of the Kyrgyz Republic, and, as it was said, the OJSC “Guarantee Fund”.



    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.




    Guarantees for entrepreneurship.

    As of May 29, 2019, Guarantee Fund approved 838 guarantees in the total amount of KGS 1.039 billion. Thanks to guarantees on loans, partner banks approved guaranteed loans to entrepreneurs in the amount of KGS 3.582 billion.

    Since the beginning of this year, 182 guarantees have been approved in the amount of KGS 284.6 million. Partner banks approved the guaranteed loans in the amount of KGS 829.8 million.

    To date, Guarantee Fund has disbursed 74 percent of the RKDF loan (KGS 100 million) obtained to support regional entrepreneurs. The guarantees were provided to 43 entrepreneurship projects in the total amount of KGS 73.6 million.

    Reminding that the priority areas for providing guarantees are production of various types of products; agriculture and processing of agricultural products; sewing and textile industries; export-oriented and import-substituting enterprises; tourism and other industries.



    SME support.

    With our guarantees entrepreneurs actively used loan resources of commercial banks for project implementation and further business development.

     From November 2016 and as of May 27, 2019, Guarantee Fund approved 836 guarantees in the amount of KGS 1.025 billion. The amount of guaranteed loans approved by partner banks reached KGS 3.541 billion.

    From the beginning of 2019, 180 guarantees were approved in the amount of KGS 270 million. The guaranteed loans amounted to KGS 789.3 million.

    Guarantee issue is performed in partnership with 11 commercial banks having in total more than 230 branches, and the RKDF. Despite the fact that among the partners of Guarantee Fund there are less than half of the capital banks, their share in the banking system is significant.

    So, as of April 1 of this year, the assets of the partner banks accounted for 69.5% of the assets of the banking system, capital – 65.1%, loan portfolio – 68.5%, profit – 102.9%, number of branches – 72.4% of the total branches of the banking system.

    In the Year of Regional Development, extensive outreach work is conducted both among local entrepreneurs and among employees of the branches of the partner banks. As a result, guarantees are issued in the most remote corners of the country.

    At present, Guarantee Fund has disbursed 61 percent of the loan from the RKDF (KGS 100 million) received last fall. 39 projects amounted to KGS 60.6 million received the guarantee support. The peculiarity of the RKDF loan is that it is targeted and is intended for the guarantee support to regional entrepreneurs.



    Consulting services.

    As it is known, one of the issues that prevent the full and progressive development of SMEs in the Kyrgyz Republic is the low level of the knowledge of entrepreneurs in the field of business organization, planning, financial issues, business risks and marketing and also lack of awareness of various instruments of financing entrepreneurial initiatives and possibilities of their use. The presence of such issues does not contribute to the successful development of regional entrepreneurs.

    OJSC “Guarantee Fund” (Guarantee Fund), the purpose of which is precisely to promote the entrepreneurship development, has identified consulting support to entrepreneurs as one of the priorities of its activities. What does Guarantee Fund today offer in the framework of consulting and information services? These are consultations on obtaining guarantees, preparation of business plans, raising funds (using various tools – lending, leasing, attracting direct investments, etc.), assistance in establishing enterprises or opening new directions in already existing enterprises.

    Guarantee Fund provides consulting services free of charge.

    In total, since the beginning of 2019, Guarantee Fund (including Bishkek and regional representative offices) provided consulting services to over 50 legal entities and individual entrepreneurs, five of them developed business plans on a contractual basis.

    During consultations entrepreneurs are provided with the necessary information, specific recommendations and, if necessary, a business plan is developed. Agricultural, processing and industrial enterprises in the regions of the Kyrgyz Republic and their growth and stable development contribute to the creation of new jobs and the maintenance of existing ones.