Dear partners, entrepreneurs, colleagues, and friends!
Happy New Year!
I wish you good luck in the new year, so that you achieve all your goals! In the past year, we completed a lot of creative work together, laid the foundations for the further development of our companies, and made a great contribution to the economy of Kyrgyzstan.
I wish you a success and achievements, family well-being, financial prosperity!
The Chairman of the Management Board of OJSC “Guarantee Fund”
According to the latest data, as of December 31 of the outgoing year, OJSC “Guarantee Fund” approved 1 602 guarantees in amount of 1 675 million KGS. The volume of loans approved by partner banks amounted to 5 647 million KGS.
Since the inception of this year, 946 guarantees have been issued in amount of 920.7 million KGS. At the same time, the amount of bank loans amounted to 2 895 million KGS.
The good news is also on loan of RKDF received by OJSC “Guarantee Fund” in amount of 100 million KGS. It has been successfully mastered. Within the framework of this credit line, 28 guarantees were issued in amount of 100.5 million KGS (101%)
Support of Regions.
The results of the activities of OJSC “Guarantee Fund” for 2019 and previous years, show an increase in quantitative and qualitative indicators, confirming the correctness of the chosen strategy of activity with emphasis on supporting regional entrepreneurs.
From the beginning of activities and as of December 31, 2019, OJSC “Guarantee Fund” approved 1602 guarantees in amount of 1 676 million KGS, the volume of loans issued by partner banks amounted to 5 658 million KGS.
Of the total number of guarantees in agriculture, for instance, 925 were provided, 74 – in processing sector, 114 – in manufacturing.
If we consider a regional context, then entrepreneurs in Issyk-Kul region received 546 guarantees, Naryn -210, Chui – 189, Osh -138, Jalal-Abad – 94, Batken – 78, Talas – 47, Osh city – 49, Bishkek -251.
Due to guarantee support of entrepreneurs, a total of 2413 new jobs were created in the republic, 10 462 existing jobs were supported.
From words to action!
On December 25, OJSC “Guarantee Fund” decided to issue the first guarantee as part of the implementation of the Intensive Sheep Husbandry Development in the Kyrgyz Republic program developed by the fund.
The recipient of the guarantee is Aralbek Abdyrasulov, a farmer who specializes in fattening sheep, using the herd method in his own farm near Bishkek. Guarantee support was necessary for him to obtain a loan for the purchase of animals and extruders – equipment for the preparation of feed by local assembler.
The “Intensive Sheep Husbandry Development in the Kyrgyz Republic” program provides for the stall keeping of sheep for meat using extruded feed.
The Essence of Intensive Sheep Husbandry Program
“OJSC “Guarantee Fund” developed this program in order to support the efforts of the President of the Kyrgyz Republic and the Government of the Kyrgyz Republic to develop regions, finance important industrial, export-oriented and infrastructure projects in the industrial and agricultural sectors, process agricultural products”, said Malik Abakirov, Chairman of the Management Board of OJSC “Guarantee Fund”.
Within the framework of the program, OSJC “Guarantee Fund” provides support to sole proprietorship of Aralbek Abdyrasulov, who has been engaged in the feeding and sale of animals since 2014. He is a livestock specialist by training, worked in various positions in the agriculture industry, and headed a province.
Today, OJSC “Guarantee Fund” approved a guarantee for the farmer to obtain a bank loan for the purchase of high capacity sheep and extruders. According to Malik Abakirov: “We will continue to provide advisory and guarantee support to Aralbek Abdyrasulov in the implementation of this, as well as other ideas and business plans.”
Mr. Abdyrasulov reports: “Large pastures are not needed for intensive animal feeding. My farm, with a total area of 15 acres, contains up to 500 sheep. At the same time, animals gain weight much faster. I alternate between conventional feed and extruded with an increase in the proportion of the latter. The benefits of stall maintenance are obvious. If during normal feeding the daily gain of sheep is 90-100 grams, while feeding sheep with extruded feeds brings a gain in amount of 130-140 grams.
As for weight conditions, to achieve the required weight of sheep during normal feeding, a farmer needs at least 100 days, and when feeding with extruded feeds the period shortens to only 80 days. This is the obvious saving of workdays. Sheep selling is going well. I, as a former livestock specialist, provide control not only over weight gain, diet, but also the state of animal health, timely conduct of veterinary examination and maintenance. Due to this, my sheep are even exported to neighboring countries.”
According to Malik Abakirov, for the widespread dissemination of this program, it is necessary to create a solid fodder base using extruded feeds, improve veterinary services, and acquire extruders. The implementation of the program will contribute to an increase in the number of meat-producing sheep in the next 3-5 years from 6.2 million (as of the end of 2018) to 7.5 million heads by the end of 2023, as well as to the preservation of pastures from degradation.
“Every day, people are more and more interested in our program, farmers form various regions of Kyrgyzstan are getting in touch with us”, continues the head of the fund. Since December, the specialists of OJSC “Guarantee Fund” have prepared a number of business plans for obtaining finances for farmers to keep sheep using the stall method.
Export Potential of the Program
Mr. Abakirov is sure that during the implementation of the program of “Intensive Sheep Husbandry Development in the Kyrgyz Republic” by OJSC “Guarantee Fund”, significant results will be achieved in sheep breeding in the meat sector with great export potential. A training center will be created on the basis of the farm of Aralbek Abdyrasulov, publication and distribution of brochures on the stall keeping of sheep is planned.
It is assumed that in each region 10-20 farms will be created with 1-2 thousand sheep. As a result, the annual growth of number of sheep will amount to 300-400 thousand heads. By 2023, it is expected that the number of sheep will reach up to 7.5 million heads. Meat production by this time will reach 144 thousand tons per year. Meat export will be up to 20 thousand tons per year.
“The implementation of the program will create a value chain 0- from the manufacture of feed, meat, wool and hires to export products. The development of value chain will contribute to the stable production of competitive agricultural products, the application of best practices in sheep farming, access to foreign markets, export of products and an increase in the contribution of livestock sector to GDP.
OJSC “Guarantee Fund” since the inception of its activities and as of December 24 approved 1584 guarantees in amount of 1 637 million KGS. Partner banks approved loans in amount of 5 530 million KGS.
As of December 24, OJSC “Guarantee Fund” disbursed 96 percent of the loan of the RKDF which was received in amount of 100 million KGS: 24 guarantees were provided in the amount of 95.8 million KGS. Prior to this, two similar loans were successfully mastered.
In the process of providing guarantees involved 12 partner banks and RKDF. Guarantees are issued in all regions of Kyrgyzstan. In the sectoral context, agriculture and other priority sectors are leading.
In 2019, two branches of OJS “Guarantee Fund” were opened in Naryn and Osh regions. The next step is the opening of branches in Jalal-Abad and Issyk-Kul regions. These measures will improve the interaction of OJSC “Guarantee Fund” with local entrepreneurs, expand their coverage with consultations and guarantees. It is worth to note that the branches are authorized to approve guarantees with an amount of up to 300 thousand KGS.