Meeting in the Government of the Kyrgyz Republic.
On July 1, 2019, the Prime Minister of the Kyrgyz Republic, Muhammedkaliy Abylgaziev, held a meeting to discuss mechanisms for financing regional development projects. The meeting addressed issues that are of priority importance in the framework of the implementation of the Decree of the President of the Kyrgyz Republic on declaring 2019 the Year of Regional Development and Digitalization.
“We need to turn our attention to the development of the regions as a whole, and a mechanism for financing regional development projects in the amount of 2 billion KGS should be introduced. At present, a competition commission is being set up under the government to select priority investment business projects, infrastructure projects and development programs,” said Muhammedkaliy Abylgaziev.
Guarantee Fund today puts more emphasis on supporting regional enterprises, implements a number of development programs. In cooperation with partner banks, a number of serious projects were funded, including the processing of beans in Talas, the construction of dairy plants in Osh, Issyk-Kul and Jalal-Abad, the production of wooden boxes in Alamudun district, the construction of a hotel in At-Bashy district, the purchase of breeding cattle in Ak-Suu district, construction of a greenhouse in the city of Jalal-Abad, production of building materials in Osh and Batken regions, production of rubber shoes in Bishkek, production of tractors in Issyk-Ata region, etc.
OJSC “GF” is currently implementing the program “One region – one enterprise”, the purpose of which is to assist entrepreneurs in creating new enterprises and / or new directions in existing enterprises in each region. 38 innovative and export-oriented projects are under implementation.
Another program of OJSC “GF” involves cooperation in the management of regional enterprises, in particular in financial management, developing an enterprise development strategy, including a business strategy, in attracting investments and working with investors, donors, banking institutions.
The most important area of activity of OJSC “GF” is active work to improve the financial literacy of entrepreneurs in the regions. For the 5 months of 2019, a total of 56 seminars were held by the regional representatives of OJSC “GF” for entrepreneurs and employees of affiliates of partner banks.
Since the beginning of the year, the Consulting Services Department of the GF has conducted more than 20 consultations for SMEs, and 7 business plans have been developed.
The Prime Minister of the Kyrgyz Republic, Muhammedkaliy Abylgaziev, held a meeting on the activities of financial and loan organizations with a state participation.
During the meeting, information was received on the work of the open joint-stock companies Aiyl Bank, RSK Bank, Guarantee Fund, and the Russian-Kyrgyz Development Fund as part of the Year of Regional Development and Digitalization.
The Head of the Government noted that over the 5 months of this year, the GDP growth amounted to 5.6%.
“For the 5 months of 2019, commercial banks in the republic issued loans in the amount of 136.4 billion KGS, of which 86.6 billion KGS were issued in national currency. Credits were issued in the following areas: trade – 36 billion KGS, agriculture – 27.4 billion KGS, consumer loans – 14.6 billion KGS, mortgage – 13 billion KGS, construction – 12.3 billion KGS, industry – 11.2 billion KGS. As you know, for us, the priority in our work is the development of regions and digitalization. In this aspect, the role of financial institutions in supporting entrepreneurs by providing affordable credit is important. This will allow developing enterprises and creating new jobs, thereby improving the socio-economic situation of the regions. In addition, it is important to develop banking infrastructure in the regions, increase the accessibility of the population to banking services, especially in remote areas of the country,” said the Prime Minister.
Muhammedkaliy Abylgaziev stressed the importance of simplifying the procedures for consideration by the Russian-Kyrgyz Development Fund for the development of business projects. In addition, the importance of considering lending to facilities in the field of tourism and supporting women’s entrepreneurship was noted.
During the meeting, financial and loan organizations, including Aiyl Bank, were instructed to strengthen work in the regions in terms of lending to agriculture and the processing industry.
The State Property Management Fund under the Government of the Kyrgyz Republic has been instructed to expedite the resolution of issues related to the capitalization of the joint-stock companies RSK Bank and Guarantee Fund.
Department of Information Support
of the Government Office
of the Kyrgyz Republic
Business Support Tool.
As of July 4, 2019, GF approved 887 guarantees for a total amount of KGS 1.144 billion. Under the guarantee of the Fund, partner banks approved loans to entrepreneurs in the amount of 3.916 billion KGS.
Since the beginning of this year, 231 guarantees have been approved in the amount of 389.8 million KGS. The amount of bank loans amounted to 1.164 billion KGS.
Reminding that the priority areas for providing guarantees are: agriculture and processing of agricultural products; sewing and textile industries; export-oriented and import-substituting enterprises; tourism and other industries.
The interaction procedure of the “Guarantee Fund”, the partner bank and the entrepreneur (in case of insufficient collateral) is as follows:
The entrepreneur contacts one of the partner banks of the Guarantee Fund.
After evaluating and approving the application, the bank, together with the entrepreneur, applies for a guarantee to the Guarantee Fund.
The Guarantee Fund evaluates the project and makes a decision.
The guarantee fee is paid once and ranges from 2 (priority sectors) to 2.5%.