Guarantee Fund issued guarantees in the amount of KGS 11 million

In four months Guarantee Fund issued 16 guarantees in the amount of KGS 11 million. Deputy Minister of Economic Affairs of the Kyrgyz Republic Daniyar Imanaliev reported at a press conference.

According to him, today one of the most challenging and outstanding issues is insufficient collateral for loans. About 40-50% of loan applications are rejected by commercial banks due to insufficient collateral. The most difficult situation is in regions.

Collateral is fully covered only in cities such as Bishkek and Osh. In regions collateral value is low and it is insufficient for loan.

“Within anticrisis measures in 2016 the Government created Guarantee Fund to support small and medium-sized enterprises. It was created in a short period of time and nowadays fully operates”, – said Daniyar Imanaliev.

Capital of GF constitutes KGS 282 million. KGS 1 million was allocated from the budget and KGS 210 million is a grant of Asian Development Bank. The Fund issues guarantees at 1,5% of the amount, and since March 1, 2017 – at 2,5%.

The priority sectors for support are production and agro-processing, meat cluster, meat-dairy industry, fisheries, clothing and textile industry, construction materials production, tourism development, medical services export and transportation and logistics services.

Besides, it is planned to use possibilities of Guarantee Fund while implementing the Cabinet of Ministers export-oriented and import-substituting productions support program.