The Guarantee Fund has concluded agreements with six partner banks within the framework of the program for the entrepreneurship support in the amount of 1 billion KGS.

Today, September 11, the Guarantee Fund as part of the implementation of its own program “Increasing access for SMEs to financing in order to mitigate the consequences of coronavirus infection COVID-19”, developed in accordance with the Anti-Crisis Plan of the Government of the Kyrgyz Republic to reduce the negative impact on the economic and social stability in connection with the spread of the COVID-19 coronavirus, concluded agreements with six banks of the republic.

The subject of the agreements is the participation of banks in a deposit auction held by the OJSC “Guarantee Fund” for placing the fund’s resources on special deposit accounts of banks. Banks, whose applications will be satisfied as a result of the auction, provide comprehensive measures for granting loans to SMEs.

The funds provided for in the program of the Guarantee Fund are provided exclusively for lending to SMEs and will be sent in 100% to the regions of the country. Loans will be provided to entrepreneurs operating in such industries as:

  • production and processing of agricultural products;
  • industry;
  • tourism;
  • transport;
  • export-oriented and import-substituting enterprises:
  • trade and logistics centers and vegetable stores:
  • innovative activity (creation of new enterprises or new directions of activity);
  • production of protective medical equipment and personal protective equipment;
  • the sphere of education, information technology;
  • cluster projects of domestic producers, including the development of intensive sheep breeding.

Loans within the framework of the above program will be provided for up to 5 years, the loan amount – up to 10 million KGS. A prerequisite stipulated by the OJSC “Guarantee Fund” in the agreement is that the final interest rate for an entrepreneur should not exceed 10% per annum.

According to the results of the program implementation, the OJSC “Guarantee Fund” expects:

  • increasing the volume of guarantees of the OJSC “GF” up to 0 billion KGS;
  • the volume of concessional loans secured by the guarantee of the OJSC “GF” over KGS 2.0 billion;
  • coverage of more than 1,000 SMEs;
  • creation of new jobs and maintenance of existing jobs.

As of today, the Guarantee Fund has concluded agreements with OJSC “Keremet Bank”, “Aiyl Bank”, “Bakai Bank”, CJSC “Bank of Asia”, OJSC “Halyk Bank Kyrgyzstan” and “CB Kyrgyzstan”.

Negotiations are underway with other partner banks of the Guarantee Fund to conclude similar agreements:

  • OJSC “RSK Bank”, OJSC “Optima Bank”,
  • CJSC “Finca Bank”, CJSC “Bank Kompanion”;
  • CJSC “Demir Kyrgyz International Bank”, CJSC “KICB”;
  • OJSC “Bakai Bank”, OJSC “Optima Bank”;
  • CJSC “Kyrgyz-Swiss Bank”.