FINANCIAL INSTITUTIONS OF THE KYRGYZ REPUBLIC INCREASED THE SHARE OF FINANCING REGIONAL PROJECTS

On January 14, President of the Kyrgyz Republic, Sooronbay Zheenbekov held Erkin Asrandiev, the Chairmen of the management board of the Russian-Kyrgyz Development Fund (RKDF), Baktybek Shamkeev, OJSC “Aiyl Bank”, Malik Abakirov, OJSC “Guarantee Fund”, and Azizbek Omorkulov, OJSC “RSK Bank”.

The head of state emphasized that the priority areas of activity of the country’s financial institutions should be pillar for the processing, sewing and textile industries, and tourism, as well as small energy projects, and the development of trade and logistics infrastructure. He particularly highlighted the scope of the processing industry, including the processing of meat, milk, wool, and leather, which is the main raw material in rural areas.

The President emphasized that within the framework of the state policy for regional development, emphasis should be placed on supporting export-oriented enterprises. “Increasing export potential and supporting these areas will help creaser new jobs in regions, and reduce internal migration. It is important to prevent corruption in the implementation of your projects in regions, and to support entrepreneurs I need of soft loans”, states the President.

The leaders of the country’s financial institutions provided information on the volumes of project financing and the issuance of soft loans for 2019. The Chairman of the Board of RKDF, Erkin Asrandiev, said that following the results of last year, the fund approved 724 projects worth 77.5 million USD. Compared to 2018, this indicator grew by 80%. Of the total number of approved projects, 88% were in country’s regions.

OJSC “Aiyl Bank” issued 53 957 loans in amount of 12 billion KGS in 2019. Of the total, 10.1 billion KGS, or 84% were allocated to finance projects in the regions. The share of regional financing increased by 9% compared to 2018. OJSC “RSK Bank” issued 10 335 loans for the total amount of 8.4 billion KGS in 2019. The share of loans issued in the regions of the country increased, they amounted to 5.5 billion KGS or 66% of the total loans.

Also in 2019, by OJSC “Guarantee Fund” 946 guarantees were issued in the amount of 921 million KGS. This is almost double the indicators of 2018, the growth of guarantee amount is 82%, the share of regional financing increased to 66%.

The leaders of the country’s financial institutions said that most of the funding came from projects in agriculture, processing, and industrial sectors.

The head of state emphasized that in 2020, the activities of financial institutions should also be focused on stimulating the development of regions.

He noted the particular importance of increasing the availability of loans in the regions, drew attention to the increased financing of projects in remote and border areas, and called for continued work of digitalization of banking services.

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