KYRGYZ MODEL OF GUARANTEE FUNDS
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- Category: Digest
Ideas for export.
In 2018, the Kyrgyz model of guarantee funds of the Kyrgyz Republic to support and develop small and medium enterprises was recognized by the Asian Development Bank (ADB) as successful, sustainable and effectively helping entrepreneurs.
In this regard, the ADB recommended that the countries of Central Asia and the Caucasus introduce the Kyrgyz model of guarantee funds.
“The two-tier Kyrgyz model was formed in 2016 with the establishment of the OJSC “Guarantee Fund” by the Government of the Kyrgyz Republic,” – says Malik Abakirov, the Chairman of the Board of the OJSC “Guarantee Fund”. – In addition to the Fund, there are also six regional guarantee funds in the regions of the republic.
Currently, a guarantee fund system is being implemented in Georgia. Last year, according to the ADB, the Kyrgyz model of guarantee funds was offered to this country. Therefore, there is hope that Georgia will use the experience of our country. Another important news is that ADB also intends to recommend the Kyrgyz experience in establishing and operating guarantee funds to neighboring Uzbekistan.”
An international conference Innovative Finance for Growth: The Role of Credit Guarantee Funds was recently held in Istanbul, at which Malik Abakirov, the Chairman of the Board of the OJSC “Guarantee Fund”, made a presentation on the establishment and development of guarantee funds.
The presentation was received with interest by the conference participants. For representatives of financial institutions from different countries, the determining factor was the efficiency of practical activities and the institutional development experience of OJSC “Guarantee Fund”, which achieved noticeable results in just 2.5 years of operation.
Efficiency is, above all, successful assistance in accessing financial resources for small and medium enterprises in all regions of Kyrgyzstan, guaranteeing loans if there is insufficient collateral from entrepreneurs. The pace of development, quantitative and qualitative parameters of the activities of the OJSC “Guarantee Fund” confirm this convincingly.
The intellectual product can also be exported, as well as ordinary goods and products, Malik Abakirov is convinced. It also contributes to the increase of investment attractiveness, and improvement of the image of Kyrgyzstan.