MECHANISM OF FINANCING FOR START-UP PROJECTS AND SMALL ENTREPRENEURSHIP IN THE REGIONS OF THE COUNTRY WILL BE IMPLEMENTED BY THE NATIONAL BANK OF THE KYRGYZ REPUBLIC, THE RUSSIAN-KYRGYZ DEVELOPMENT FUND AND THE GUARANTEE FUND
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News of the NBKR.
On July 24, 2019, a meeting was held between the heads of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov, the Russian-Kyrgyz Development Fund (RKDF) Erkin Asrandiev and the Guarantee Fund Malik-Aidar Abakirov, during which the parties discussed the financing mechanism for startup projects in Batken, Talas and Naryn regions and the participation of the Guarantee Fund in this project.
As part of the execution of instructions of the President of the Kyrgyz Republic and the implementation of the Decree of the President of the Kyrgyz Republic “On declaring 2019 the Year of Regional Development and Digitalization of the Country,” the National Bank and the RKDF have developed a mechanism for financing startup projects in Batken, Talas and Naryn regions.
The program is aimed at financing startup projects for the processing of agricultural products produced by local producers.
RKDF provides for $ 1 million for the allocation for start-up projects, which will be evenly distributed in three regions, or about 350 thousand dollars for each region. At the same time, the minimum lending threshold for direct financing is from 200 thousand US dollars, respectively, projects with the amount of financing from 200 to 350 thousand US dollars can participate in the competition.
In addition to the above, Erkin Asrandiev added about the launch of a new program for financing startup projects for small businesses in all regions of the country (except Bishkek), which will be implemented jointly with partner banks and the Guarantee Fund. The amount of financing will be from KGS 300 thousand to KGS 1 million, which will be issued for the implementation of new business projects (ideas) at an interest rate (preliminary) of 10% per annum for up to 5 years.
According to preliminary information, the practical implementation of these projects will begin in August of the current year.
As part of the mechanism for implementing this program, the Guarantee Fund will provide guarantees to entrepreneurs whose startup projects will be selected for financing.