President Sooronbai Zheenbekov discussed projects on support for agricultural producers with Russian Kyrgyz Development Fund and OJSC “Guarantee Fund”

Today on January 19, President of the Kyrgyz Republic Sooronbai Zheenbekov had a meeting with the Chairman of the Board of Russian Kyrgyz Development Fund Erkin Asrandiev and the Chairman of the Board of OJSC “Guarantee Fund” Malik Abakirov.

During the meeting they discussed issues on providing access to financing for entrepreneurs in regions of the Republic within the Presidential Decree on “the announcement of 2018 – the Year of Regional Development”.

President Sooronbai Zheenbekov stressed that Russian Kyrgyz Development Fund and OJSC “Guarantee Fund” must provide access to financing for projects directed to support for agricultural producers including export-oriented and finally directed to regional development.

“Our country tries to enter market of other countries. Entry of Kyrgyzstan into the Eurasian Economic Union has strengthened competition in export of domestic products. Only producers, who work with new technologies, have enough funds and can stay at market, can stand high competition. The government goal is to support and provide “long and cheap” loans for increasing competitiveness of domestic products, implementing innovations, material-technical base update, production extension”, – said Sooronbai Zheenbekov.

President stressed that in regions he had meetings with entrepreneurs who had good projects, but without collateral they could not obtain loans. These projects remained unrealized.

“While we have loan resources to support them. Your funds play a significant role in financial sector of economy and are a key factor in GDP growth and export in Kyrgyzstan.”

However, RKDF when financing projects made imbalance in the coverage of regions. Low cost or lack of collateral make a group of rural people unattractive for traditional banks. It is necessary to revise the financing policy and pay more attention to the development of regions’ welfare,” – the President said.

President Sooronbai Zheenbekov reminded, that when he was a prime minister, open joint stock company “Guarantee Fund” was created to assist entrepreneurs in obtaining necessary loan amount in case of insufficient collateral.

He recommended to “Guarantee Fund” considering Decree on “the announcement of 2018 – the Year of Regional Development” to assist regional entrepreneurs in access to financing of their projects including export-oriented productions with other financial institutions of the country.  Joint system work will help to promote entrepreneurship, create new jobs, that will finally reduce internal and external migration.

The chairman of the Board of Russian Kyrgyz Development Fund Erkin Asrandiev and the chairman of the Board of OJSC “Guarantee Fund” Malik Abakirov stressed that they would enhance joint work for regional development.

“In 2018 RKDF approved 781 projects in total amount of USD 261,46 million. We will make effort to find and realize projects related to production in regions taking into account the specificities of each region. We will make effort to create favourable conditions for financing in agricultural industry,” – Erkin Asrandiev said.

“For 14 months of activity from November 2016 OJSC “Guarantee Fund” issued 237 guarantees in total amount of KGS 248 million,” – Malik Abakirov informed.

 “When issuing guarantees, we pay special attention to rural entrepreneurs. More than half of our guarantees are issued in rural areas,” – added Malik Abakirov

In conclusion President Sooronbai Zheenbekov added that these Funds with the state banks should continue actively participate in modernization of economy of the Kyrgyz Republic by financing projects in regions of priority to the state.