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    As of October 29, 2019, OJSC “Guarantee Fund” approved 1131 guarantees in amount of 1.393 billion KGS. The amount of loans approved by partner banks under the guarantees of OJSC “Guarantee Fund” totaled to 4.801 billion KGS.

    Since the inception of the year, 475 guarantees have been approved in amount of 638.7 million KGS. The volume of loans approved by partner banks totaled to 2.048 billion KGS.

    As of October 29, 38 percent of the loan amount issued by RKDF (100 million KGS) was disbursed. OJSC “Guarantee Fund” approved 12 guarantees in amount of 38.3 million KGS.

    The issuance of guarantees is carried out in partnership with 12 commercial banks of the republic, with a total of more than 250 branches, and RKDF.

    According to data as of September 30, 2019, the share of loans issued by partner banks from the start of operations amounted to 1.17% of GDP. At the same time, the average weighed rate on loans amounted to 11.72%.

    In total, 142 branches of partner banks out of 233 available were involved in providing loans under guarantees, including:

    “Ayil Bank” – 31 out of 33 branches;

    “Bank of Asia” – 9 out of 9;

    “Demir Bank” – 5 out of 14;

    “KICB” – 11 out of 17;

    “Kompanion” – 9 out of 18;

    CB “Kyrgyzstan” – 20 out of 32;

    “RSK Bank” – 28 out of 52;

    “FINCA” – 9 out of 24;

    “Halyk Bank” – 9 out of 10;

    “BTA Bank” – 4 out of15.



    International Seminar.

    In period between October 22 to 25, the seminar of the Interbank Association of the Shanghai Cooperation Organization on topic “Experience in Financing Regional Development Projects” was held in Rixon Hotel, Bishkek. Representatives of the Development Bank of Kazakhstan, Amonat Bank of Tajikistan, and the EEF of the Russian Federation participated in it.

    The seminar was also attended by the Chairman of the Management Board of OSJC “Guarantee Fund”, Malik Abakirov. He familiarized attendants about the experience of the Fund’s cooperation with SMEs of the republic in providing guarantees and disseminating the Kyrgyz model of guarantee funds to foreign countries.

    Malik Abakirov spoke about the prerequisites for creating a guarantee system in Kyrgyzstan, caused by the necessity to provide assistance to SMEs in access to financial resources. The number of SMEs is more than 800 thousand units, and lending to the business sector is only 22% of the Kyrgyz Republic’s GDP, while in OECD countries, the percentage is 100-300 percent of GDP.

    Moreover, SMEs have limited access to finance due to bank’s stringent requirements for collateral and high interest rates. In general, the need for guarantees by SMEs is estimated at 40% of the total loan portfolio of banks.

    To resolve these problems, a new financial system was created in 2011-2013 – regional guarantee funds. In 2016, the Government of the Kyrgyz Republic established OJSC “Guarantee Fund” with the assistance of ADB, operating throughout the country. As a result, a two-level Kyrgyz model of guarantee funds was created; OJSC “Guarantee Fund” and six regional guarantee funds. The system was highly praised by ADB. Significant events took place in 2019: the amendment of the Law “On guarantee funds in the Kyrgyz Republic” was adopted, the Government of the Kyrgyz Republic actualized additional capitalization of the fund, and the National Bank of the Kyrgyz Republic became one of the shareholders. As a result, the authorizes capital of the fund was increased up to 1.132 billion KGS.

    Over the past year, OJSC “Guarantee Fund” has truly become a development institution, the Chairman of the Management Board further emphasized. Not only does the fund provide guarantees, but it also provides a package of services for SMEs – it conducts consultations, seminars for regional entrepreneurs and bank employees, assists in developing business plans, and participates in enterprise management.

    Since the inception of the fund’s activity, representative offices have been created in all areas. The first branch was opened in September in Naryn region. It is projected to open branches in Jalal-Abad and Issyk-Kul regions, which will increase the coverage of guarantees and services of local entrepreneurs.

    As of September 30, 2019, in total of 980 entrepreneurs received guarantees worth over 1.3 billion KGS, Malik Abakirov declared. Under these guarantees, entrepreneurs received over 4.6 billion KGS from partner banks, and now are successfully implementing their business projects, contributing to the development of regions, providing employment for the population, helping to reduce poverty and reduce migration.

    A separate topic of the report of the head of the fund was the issue of export of the Kyrgyz Model of the guarantee funds. Particularly, a guarantee fund in Tajikistan, using the Kyrgyz model, was created and started functioning. More, Uzbekistan and Belarus expressed interest in the Kyrgyz Model of guarantee funds.

    As for the development prospects, Malik Abakirov informed that in the future, it is possible to transform OJSC “Guarantee Fund” into Guarantee Fund Corporation for the development of SMEs. There are also proposals to create a Central Asian Guarantee Fund to support SMEs in Central Asia and the Caucasus. The implementation of this idea will contribute to increasing the level of mutual trade between the SMEs of these countries, Malik Abakirov concluded.

    PR/Temirbek Mamatkanov/ 01.11.2019


    Meetings in Regions.

    “EXTEND THE ENTREPRENEURUAL REACH WITH GUARANTEE SUPPORT” – was the topic of meetings of the Deputy Chairman of the Management Board of OJSC “Guarantee Fund”, Azamat Kozhobaev, which he held from October 22 to 25, 2019 in Osh Region.

    During a visit to Osh region, Azamat Kozhobaev net with the leaders and employees of the local branches of partner banks, which have been actively cooperating with OJSC “Guarantee Fund” for several years. The parties discussed important issues of cooperation in support and development of SMEs, as well as mechanisms for cooperation in issuance of loans under guarantees of OJSC “Guarantee Fund”.

    Another purpose of the trip of the Deputy Chairman of the Management Board was organizational activities related to the upcoming opening of a branch of OJSC ‘Guarantee Fund” in Osh region.

    It should be noted that the Osh regional branch of OJSC “Guarantee Fund” will be empowered to independently approve and issue guarantees to a business entity in the amount of up to 300 thousand KGS. This will significantly accelerate the process of interaction between the branch of OJSC “Guarantee Fund” and the regional branches of partner banks, and will also expand the coverage of entrepreneurs with guarantee support.



    Business – Navigator in Kyrgyzstan.

    The concrete result of the international forum “Eurasian Week-2019” which ended in Bishkek at the end of September can be called an action plan (road map) for cooperation between Russian JSC “SME Corporation”, RKDF, and OJSC “Guarantee Fund”, the implementation of which is scheduled to begin in spring of 2020.

    As we already reported, the forum discussed topical issues of integration of EAEU countries, promising areas of development, a single energy market and joint agricultural projects. Then, on the sidelines of the forum, a conversation between the Chairman of the Management Board of OJSC “Guarantee Fund”, Malik Abakirov, and Nikita Bantsekin, the Head of the Directorate for International Affairs, a member of the Management Board of JSC “SME Corporation”. Each side expressed interest in establishing cooperation.

    Parties quickly turned from words to action. With the participation of RKDF, a draft action plan was prepared, the so-called road map, the purpose of which is to create a Business Navigator for SMEs in the Kyrgyz Republic.

    A business navigator is a free online resource for entrepreneurs who want to open or expand their business, work legally, pay all taxes and deductions. It allows entrepreneurs to learn online how to open and grow their business, calculate how much money they need to invest, how much profit to expect, how to get a grant, loan, subsidies. The tool also offers many other services.

    In accordance with the project, OJSC “Guarantee Fund” will be entrusted with the function of an executive agency. The fund, in agreement with “SME Corporation” and RKDF, will deal with issues of improving the financial literacy of local entrepreneurs, assisting in the preparation of business plans, which will contribute to the development of mass entrepreneurship in Kyrgyzstan.

    After the Business Navigator launches in Kyrgyzstan, entrepreneurs will receive so-needed online support, freeing up a precious time for creative business.



    Press Conference.

    On October 21, 2019, Kabar Agency hosted a press conference of the Chairman of the Management Board of OJSC “Guarantee Fund”, Malik Abakirov, for media, dedicated to the participation of the Fund in the implementation of the World Bank project “Integrated Dairy Productivity Improvement”. Currently, OJSC “Guarantee Fund” has started to issue first loans under the present project. The conference was also attended by the head of Guarantee and Product Development Department, Erik Talasbaev.

    Chairman of the Management Board, Malik Abakirov, informed reporters that the Fund was identified as one of the participants in implementation of the World Bank’s project “Integrated Dairy Productivity Improvement” in accordance with Order of the Government of the Kyrgyz Republic No. 148 dated May 23, 2019.

    Malik Abakirov noted that back in 2018 OJSC “Guarantee Fund” reached an agreement with the World Bank on participation of the fund in implementation of this project. In 2019, participation was officially supported by a government decree. This indicates the confidence in OJSC “Guarantee Fund” as a financial institution, testifies to the recognition of its competence by international organizations and government agencies.


    Start of Practical Implementation

    As part of the “Investments at the Farm Level” component (total funding of 2 million USD), “Guarantee Fund” participates in the selection process of applicants, arranges loan agreements with farmers – members of borrower groups, and monitors compliance with the loan repayment schedule, and is also responsible for the repayment of loans, Malik Abakirov continued.

    Employees of OJSC “Guarantee Fund” conducted a survey of households of farmers in Jeti-Oguz and Tyup districts. To the present day, 5.572 million KGS were approved in loans to 69 farmers from villages of Svetlaya Polyana, Darkhan, Boz-Beshik, Taldy-Suu, and Ken-Suu. After the completion of the issuance of loans in these areas, OJSC “Guarantee Fund” will begin issuing loans in Ak-Suu, Ton, and Issyk-Kul districts.

    Malik Abakirov noted that loans are interest-free, issued in the amount of up to $1.2 thousand per person (equivalent to 84 thousand KGS), and for a period of 10 months to 3 years.

    A specially hired company was involved in the formation of group of borrowers of milk producers, their training in financial literacy, procurement procedures, livestock breeding and feeding.

    A survey of farms was carried out by employees of OJSC “Guarantee Fund”, who drew attention to the absence of debt on loans, the availability of land with an area of not more than 5 hectares, and the presence of cattle no more than 3. Also, borrowers are obliged to make their own contribution in the amount of 10% of the total loan amount.

    Upon completion of the project (December 31, 2020), “Guarantee Fund” will transfer funds from the revolving fund that will allow the continuation of the project to support dairy sector, which will become the basis for extending this experience to other regions of the Kyrgyz Republic.

    Expected Project Results


    According to Malik Abakirov, the following indicators are expected to be achieved as a result of the project:

    • Reach up to 2 thousand direct beneficiaries – households and family farms;
    • Introduce enhanced methods of feeding, protecting health, raising and keeping livestock in 405 of dairy producers;
    • At least 45% of the direct beneficiaries should be women
    • At least 10% of the direct beneficiaries should be young adults (18-29 year olds)

    At the end of the press conference, the Chairman of the Management Board of OJSC “Guarantee Fund” Malik Abakirov and the head of the Guarantee and Product Development Department Erik Talasbaev answered journalists’ questions.


    Reference: The agreement between the Kyrgyz Republic and IDA was signed on August 10, 2017. It was ratified by the Law of the Kyrgyz Republic dated December 28, 2017 No 220 (25) and entered into force on April 10, 2018. The aim of this project is to increase the productivity of dairy cattle and the quality of milk on small pilot subsidiary dairy farms in Issyk-Kul region. The project consists of four components:

    • Strengthening public and private services in dairy sector,
    • Increasing on-farm productivity,
    • Investments at the farm level,
    • Project management (management, audit, monitoring, and evaluation).

    The total amount of financing is 5 million USD (IDA) of which, 2.25 million USD is a grant and 2.75 million USD is a loan. The implementation period of the project is from April 2018 to December 31, 2020. The executive departments of the project are the Ministry of Agriculture, Food Industry and Land Reclamation and the Ministry of Finance. Implementing agencies of the project are the Agribusiness Competitiveness Center, the Credit Line Management Department of the Ministry of Finance of the Kyrgyz Republic, and OJSC “Guarantee Fund”.