Results of the International Conference “The role and place of OJSC” Guarantee Fund ” in the development of the economy of the Kyrgyz Republic”, dedicated to the 5th anniversary of OJSC “Guarantee Fund”

On September 15, 2021, OJSC “Guarantee Fund” held an international conference entitled “The role and place of OJSC” Guarantee Fund “in the development of the economy of the Kyrgyz Republic” in honor of its 5-year anniversary.

The conference was attended by representatives of the Presidential Administration of the Kyrgyz Republic, the National Bank of the Kyrgyz Republic, the Cabinet of Ministers of the Kyrgyz Republic, international financial institutions (the World Bank, ADB, IFC, EBRD, UNDP, etc.), heads of partner banks of OJSC “Guarantee Fund”, foreign colleagues, domestic entrepreneurs, ADB consultants and university rectors.

Including:

– Tolkunbek Abdygulov, Chairman of the NBKR Management Board;

– Akylbek Zhaparov, Deputy Chairman of the Cabinet of Ministers-Minister of Economy and Finance of the Kyrgyz Republic;

– Askat Bekov, Head of the Department of Policy of Strategic Development and Planning of the Presidential Administration of the Kyrgyz Republic;

– Navid Hassan Naqvi, Head of the World Bank Representative Office in the Kyrgyz Republic;

– Mirlan Bakirov, Chairman of the State Property Management Fund under the Ministry of Investment of the Kyrgyz Republic;

– Aibek Kadyraliev, Chairman of the Board of Directors of OJSC “Guarantee Fund”;

– Manizha Mamadnabieva, Head of the Representative Office of the International Finance Corporation (IFC);

– Artem Novikov, Chairman of the RKFR Management Board;

–  Bermet Musakozhoeva, Director of the Credit Line Management Department of the Ministry of Finance of the Kyrgyz Republic;

– Anvar Abdrayev, President of the Union of Banks of Kyrgyzstan;

– Azizbek Omurkulov , Chairman of the Management Board of OJSC “RSK Bank”;

– Ulan Bukabaev, Chairman of the Management Board of OJSC “Aiyl Bank”.

 

A video message was made by:

– Yuji Miyaki, Asian Development Bank;

– Robert Bodo,USAID;

– Nilufar Karimova, Executive Director of the public organization “Zamonat” (Republic of Tajikistan).

The conference began with a welcoming speech by the Chairman of the Management Board of OJSC “Guarantee Fund” Malik Abakirov to the participants.

As the Chairman of the Management Board of OJSC “Guarantee Fund” Malik Abakirov noted, the need to create a Guarantee Fund was due to the fact that 30-40% of entrepreneurs could not get the necessary loan amount due to a lack of collateral.

“OJSC Guarantee Fund was established in 2016 and started its activity with a capital of 282 million soms. To date, the capital of the Guarantee Fund is 4 billion 132 million soms, which are aimed at supporting entrepreneurs.

For 5 years of its activity, the Guarantee Fund has provided guarantees to more than 2 thousand entrepreneurs in the amount of more than 3 billion soms, and partner banks have provided loans in the amount of more than 10 billion soms. The Guarantee Fund is a stable, profitable financial structure, ” Malik Abakirov said.

The conference program consisted of 4 main sessions on the following thematic blocks:

  1. Guarantee Fund as a tool for the development of small and medium-sized businesses;
  2. International cooperation;
  3. The relationship of OJSC ” GF ” with the banking system. Financial literacy;
  4. The contribution of OJSC ” GF ” to the development of regions and sectors of the economy.

 

Below is a brief summary of the speeches of T. S. Abdygulov, Chairman of the NBKR Management Board, and A. U. Zhaparov, Deputy Chairman of the Cabinet of Ministers and Minister of Economy and Finance of the Kyrgyz Republic.

 

The speeches of other speakers can be found at the links:

 

The first speaker was Tolkunbek Abdygulov, Chairman of the NBKR Management Board. Opening the conference, in his speech Tolkunbek Abdygulov noted that OJSC “Guarantee Fund” was created in a timely manner in order to provide guarantees and effective support for entrepreneurship in Kyrgyzstan.

It was noted that the National Bank has supported the development of guarantee funds since the creation of regional guarantee funds within the framework of the USAID project. After the creation of OJSC “Guarantee Fund” by the Government and the entry of the National Bank into its capital, the Guarantee Fund became one of the largest financial institutions of the country in terms of capital. This organization has a great bright future. It was also noted that OJSC “Guarantee Fund” has a responsibility to support entrepreneurship.

Answering the questions of the conference participants, Tolkunbek Abdygulov noted that the place that the Guarantee Fund has already taken is significant, and OJSC “Guarantee Fund” will be an integral part of the financial system of our country.

Akylbek Zhaparov, Deputy Chairman of the Cabinet of Ministers — Minister of Economy and Finance of the Kyrgyz Republic, spoke about the positive impact of the guarantee system on the development of the economy of the Kyrgyz Republic by providing access to SME finance.

Akylbek Zhaparov noted the need to increase the provision of guarantees and the multiplier coefficient. With an increase in the need for guarantees, the issue of increasing the capital of OJSC “Guarantee Fund” by 2 billion soms may be considered.

It is necessary to increase the guarantee support for entrepreneurs, especially export-oriented and import-substituting enterprises, to introduce guarantee tools according to Islamic principles.

Akylbek Zhaparov further noted that the Ministry of Economy and Finance of the Kyrgyz Republic plans to provide guarantees to business entities from the new year and, possibly, qualified specialists, managers and managers of the Guarantee Fund will be involved to provide consultations.

After the presentation of the speakers of the first session, the procedure for signing agreements and memoranda with partners of OJSC “Guarantee Fund” took place:

  1. Agency agreement between the Ministry of Economy and Finance and OJSC “Guarantee Fund” on the World Bank project “Emergency support for small and medium-sized businesses affected by COVID 19”. The agreement was signed by Akylbek Zhaparov, Deputy Chairman of the Cabinet of Ministers-Minister of Economy and Finance of the Kyrgyz Republic and Malik Abakirov, Chairman of the Management Board of OJSC Guarantee Fund.

Within the framework of the Agency Agreement, OJSC “Guarantee Fund” promotes the implementation of the 2 component “Mechanism and distribution of portfolio risk” within the framework of the project “Emergency support for small and medium-sized businesses” for the introduction of portfolio guarantees aimed at supporting entrepreneurs. The amount of the Component is 24 million US dollars.

The agency agreement was signed within the framework of the World Bank project. For the first time, portfolio guarantees will be presented on the market.

Information about agreements and memoranda can be found at the link:

Signing of an agreement between the Minister of Economy and Finance Zhaparov A. U. and the Chairman The Management Board of OJSC “Guarantee Fund” Abakirov M.

The participants were presented with presentations of OJSC “Guarantee Fund” about its activities, achievements and results over a five-year period of work, followed by their discussion, providing recommendations and answers to questions of interest.

Understanding the needs of entrepreneurs, 10 years ago in 2011, 6 regional guarantee funds were created, the successful activity of which contributed to the creation of OJSC “Guarantee Fund”.

It should be noted that 5 years have passed since the decision was made by the Government of the Kyrgyz Republic to create an open joint stock company “Guarantee Fund” to assist entrepreneurs in obtaining the necessary loan amount if there is a lack of collateral.

During its activity, the Guarantee Fund has issued more than 2 thousand guarantees worth more than 3 billion soms. The amount of loans issued by partner banks amounted to more than 10 billion soms.

Main results of the International Conference:

 

  1. Роль и место ОАО «Гарантийный фонд» в поддержке предпринимательства в Кыргызстане стали значительными.

2.The Guarantee Fund has become one of the largest organizations by authorized capital and an integral part of the financial system of the Kyrgyz Republic.

  1. With an increase in the need of business entities for guarantees, the issue of increasing the authorized capital of OJSC “Guarantee Fund”will be considered.

4.The Kyrgyz model of guarantee funds is being implemented in foreign countries. The Kyrgyz model has already been implemented in the Republic of Tajikistan, representatives of the Republic of Uzbekistan and other countries are showing interest.

5.The World Bank project “Integrated development of the dairy sector in Issyk-Kul region” was successfully implemented together with the Ministry of Economy and Finance. As a result of the project implementation, the World Bank additionally allocated US $ 17 million to expand the project in other regions of the republic. OJSC “Guarantee Fund” has transferred the project to the Ministry of Economy and Finance for further implementation.

6.The number of projects with international financial organizations with the participation of OJSC “Guarantee Fund” is increasing.

7.An agreement was signed with the Ministry of Economy and Finance and OJSC “Guarantee Fund” on the World Bank project to support SMEs and introduce a new guarantee tool “Portfolio guarantees”. The project amount is 24 million US dollars.

8.The International Finance Corporation (IFC, a member of the World Bank Group) is ready to join the implementation of the portfolio guarantee project and increase the potential of the program by an additional $ 10 million.

9.The list of partner banks of OJSC “Guarantee Fund” is expanding.

10.The universities of the republic are introducing new subjects “Credit and guarantee schemes” based on the activities of OJSC “Guarantee Fund” and the Kyrgyz model of guarantee funds.

  1. The following agreements and memoranda were signed with the participation of OJSC “Guarantee Fund”:
  • Agency agreement between the Ministry of Economy and Finance and OJSC “Guarantee Fund” on the World Bank project. In accordance with the agreement, OJSC “Guarantee Fund” will introduce a new tool – portfolio guarantees to support entrepreneurs. The project cost is 24 million US dollars.
  • Memorandum of Cooperation of OJSC “Guarantee Fund” with the public organization ” Zamonat “(Republic of Tajikistan”). Thanks to the help of OJSC “Guarantee Fund”, the public organization “Zamonat” was opened and the Kyrgyz model of guarantee funds was introduced in the Republic of Tajikistan.
  • Agreement on cooperation between OJSC “Guarantee Fund” and OJSC “Dos-Credobank” on the provision of guarantees for small and medium-sized businesses.
  • Memorandum of Cooperation between OJSC “Guarantee Fund” and the Public Fund “Social Partnership Fund for the Development of Regions” for further mutually beneficial cooperation.
  • Memorandum of Cooperation between OJSC “Guarantee Fund” and the Academy of Public Administration under the President of the Kyrgyz Republic. Within the framework of the memorandum, a new subject “Credit and guarantee schemes” will be introduced based on the activities of OJSC “Guarantee Fund” and the Kyrgyz model of guarantee funds, students will undergo an internship at the Guarantee Fund.
  • Memorandum of Cooperation between OJSC “Guarantee Fund” and Kyrgyz University of Economics. Within the framework of the memorandum, a new subject “Credit and guarantee schemes” will be introduced based on the activities of OJSC “Guarantee Fund” and the Kyrgyz model of guarantee funds, students will undergo an internship at the Guarantee Fund.
  1. The participants noted the relevance of the topics discussed, the high professional level of the International Conference. The international conference has become a platform for information exchange, establishing contacts and communication between financial and credit organizations, development funds, representatives of various companies, ministries and departments.
  2. Taking into account the importance of further support for the development of the economy, a number of representatives of financial and credit organizations and entrepreneurs made proposals for regular holding of similar conferences.