OJSC “Guarantee Fund” provided interest-free loans amounting to 87.5 million KGS to more than 1,300 farmers of the Issyk-Kul region
- Posted by: test
- Category: Digest
Three years ago, on August 10, 2017, an agreement was signed between the Kyrgyz Republic and the International Development Association (the World Bank) on financing the Comprehensive Dairy Sector Productivity Improvement Project. The agreement was ratified by the Law of the Kyrgyz Republic of December 28, 2017 No. 220 and entered into force on April 10, 2018.
In 2018, an agreement was reached between the Guarantee Fund and the World Bank on the Fund’s participation in the implementation of this project. In 2019, the participation of the Guarantee Fund was officially determined by the Order of the Government of the Kyrgyz Republic, which was a confirmation of the competence of the Guarantee Fund, recognition of the effectiveness of its activities by the government bodies and international financial organizations.
To date, the implementation of the Comprehensive Dairy Sector Productivity Improvement Project aimed at increasing the productivity of dairy cattle and the quality of milk on small pilot dairy farms in the Issyk-Kul region is in full progress.
1,307 farms representing four districts of the Issyk-Kul region received loans on an interest-free basis. The first borrowers under this project were farmers of the Jeti-Oguz district in 2019. At present, farmers of Ak-Suu, Ton and Tyup districts of the Issyk-Kul regions have received similar loans for a period of 10 to 36 months.
In total, in 2019, 444 farmers benefited from the support of the Guarantee Fund within the framework of the above project, who were provided with loans in the amount of more than 31.5 million KGS. And in 2020, until today, the number of borrowers within the framework of this project amounted to 864 farmers, who received loans amounting to almost 56 million KGS.
Thus, a comparative statistical analysis of indicators for two years of the project’s implementation showed that this product is in rather high demand among entrepreneurs in the agricultural sector. The increase in the number of borrowers was over 190%, and the volume of loans issued – 180%.
The project will be completed on December 31, 2020, after which the Guarantee Fund intends to reach about 2 thousand direct beneficiaries, transfer funds from the working capital to be able to continue supporting the dairy sector and implement this experience in other regions of the republic.