The National Bank of Kyrgyzstan, the Russian-Kyrgyz Development Fund and the Guarantee Fund OJSC implement financing mechanism for start-up projects in Batken, Talas and Naryn regions. Press service of the National Bank of the Kyrgyz Republic reports.
Investment support of these regions at the initial stage is reportedly caused by a need to improve the level of economic development, taking into account difficult geographical and climatic conditions. The program is aimed at financing start-up projects for processing of agricultural products of local producers.
RKDF plans to allocate $ 1 million to finance start-up projects, which will be evenly distributed among the three regions.
«Each region will receive about $ 350,000. The minimum credit threshold for direct financing is from $ 200,000. Projects from $ 200,000 to $ 350,000 will be able to participate in the contest. Start-up projects can be additionally financed at the expense of the funds of commercial banks participating in the program,» the message says.
A distinctive feature of the program is the establishment of minimum requirements for collateral security and the absence of requirements for break-even operation for three years. The program provided for preferential terms: a low interest rate (4 percent), a financing period of up to seven years, a grace period for return of the money (up to 24 months) and consulting support for entrepreneurs.
Contribution of an entrepreneur under the terms of the program is at least 15 percent of the amount of the project. This may be money and assets involved in the project.
The Guarantee Fund will provide guarantees to entrepreneurs whose start-up projects will be selected for financing.