The Chairman of the Board of OJSC “GF” informed the Prime Minister about the activities to support entrepreneurs

On August 10 the Prime Minister Muhammedkaliy Abylgaziev held a meeting at which he heard a report on the activities of the Russian-Kyrgyz Development Fund and OJSC “Guarantee Fund” (OJSC “GF”) in the regions of the republic. This was reported by the press service of the Government Office.

The leaders of these structures provided information on activities to support small and medium enterprises and increase their access to finance. The Chairman of the Board of OJSC “Guarantee Fund” Malik Abakirov, during his speech, reported to the Prime Minister that during the whole period of work, entrepreneurs received 522 guarantees for which banks provided over KGS 1.9 billion of loan funds, more than 800 new jobs were created, 28 export-oriented projects KSS 100 million are implemented worth.

Since the beginning of this year, as of August 1, small and medium enterprises have been issued 281 guarantees in the amount of KGS 271 million, and partner banks have provided loans in the amount of KGS 908 million for these guarantees. Including rural entrepreneurs were issued 222 guarantees (79% of the total number) in the amount of KGS 183 million (68%). The volume of loans provided to entrepreneurs in the regions under the guarantees of OJSC “GF” amounted to KGS 568 million (63%). These figures exceed the same figures last year.

In 2018 the Government of the Kyrgyz Republic increased the authorized capital by another KGS 300 million and now it is KGS 582 million and the size of its own capital reached KGS 596 million.

In order to expand the coverage of entrepreneurs with guarantees in the regions, in March, OJSC “GF” attracted a loan from the RKDF in the amount of KGS 100 million, of which almost 70 percent have already been disbursed. By the end of the year, it is planned to receive another loan in the amount of KGS 100 million from the RKDF.

Malik Abakirov, the Chairman of the Board of OJSC “GF”, further reported on the programs developed and being implemented, including those related to mechanical engineering – the creation of the automotive industry and the restoration of agricultural engineering, projects were sent to the Government of the Kyrgyz Republic. He also spoke about other programs for supporting small and medium enterprises, including “One region – one enterprise”, “Entrepreneurship support centers” in regional cities, and providing consulting and information services.

The Asian Development Bank recognized the activities of the Kyrgyz model of Guarantee Funds as efficient and sustainable and recommended for implementation in the countries of Central Asia and the Caucasus, M. Abakirov noted.

Following the meeting, the Prime Minister Muhammedkaliy Abylgaziev stressed that strengthening the work of the RKDF and OJSC “Guarantee Fund” in the regions will provide farmers and peasants with access to cheap and long-term credit resources, which will contribute to the development of the regions and the country’s economy. In addition to other industries, according to the Prime Minister, it is also necessary to develop the tourism industry.