The Prime Minister Muhammadkaliy Abylgaziev: Commercial banks can become active participants in regional development

The Prime Minister of the Kyrgyz Republic Muhammadkaliy Abylgaziev today, June 7, in the framework of 2018 as the Year of Regional Development announced by the President, held a meeting with managements of commercial banks.

The Head of the Government recalled that the Government adopted the Concept of the regional policy for the period 2018-2022, which is aimed at creating support centers for growth on the basis of 20 pilot cities in the country.

“Today, regional development receives full attention. I believe that commercial banks and financial organizations must play an important role in this process. It is loan resources that assist in opening new enterprises, creating jobs. Therefore, the policy of issuing loans in banks should be targeted at, in particular, the regions, ” – said Muhammadkaliy Abylgaziev.

The Prime Minister Muhammadkaliy Abylgaziev noted that financial indicators show the development of the banking sector as a whole, there is a decrease in interest rates of loans issued, and the volume of lending is growing.

“However, at the present time there is a tendency when banks’ loan resources are mainly concentrated in Bishkek city, Osh city and Chui region, in other regions the situation is different. We must, starting this year, lay the foundation for future systemic changes in the development of regions, including provision of access to loans for entrepreneurs in regions. They should be able to receive cheap and long-term money. In this regard, the Government encourages commercial banks to actively participate in projects within the development of 20 points of growth, ” – he said.

In addition, the Head of the Government invited commercial banks to consider the possibility of increasing the number of branches in regions and the volume of concessional lending for farmers, as well as constantly working on improvement and expansion of the list of financial instruments used.

“We can consider incentive measures through tax preferences for opening of head offices of commercial banks in regions,” – the Prime Minister added. In turn, representatives of commercial banks reported that they were ready to participate in many state programs, support entrepreneurs in regions and develop human potential, which is one of the main priorities for the development of the state.

The Head of the Government Muhammadkaliy Abylgaziev stressed that within the framework of the Concept of Regional Development, emphasis will be placed on the irrigation system and provision of clean drinking water.

“We understand that without solving these two issues there can be no question of development of regions. In addition, the priority task of the Government of the country is to provide each village with Internet so that it becomes accessible to every resident of the country. Also within five years it is planned to build 2000 kilometers of roads and solve a number of other problems. We intend to focus on regions to create necessary conditions for work and life in homeland for young people leaving for other countries for work, ” – said Muhammadkaliy Abylgaziev.

Information Support Department of the Government Apparatus of the Kyrgyz Republic