The Hungarian-Kyrgyz Development Fund announces start of accepting applications for financing of investment projects. The Chairman of the Board of the Fund Temirbek Erkinov announced today at a press conference.
According to him, the fund will start working from November 2021. During this time, regulations have been developed. The Fund is ready to present the terms of lending.
«Applicant must be a registered subject of the economy of Kyrgyzstan. It must be a substantiated investment application, i.e. a business plan, a guarantee contribution of not less than 15 percent of the amount of funding and in case of project financing — not less than 30 percent, availability of acceptable collateral. Besides, there should be a minimum 30 percent Hungarian share (services, technology, equipment),» Temirbek Erkinov said.
In turn, member of the Board of Directors of the Fund Alymbek Orozbekov told that loans would be provided at a minimum rate of 1.5 percent and the maximum rate of 7.25 percent. It will depend on four criteria: importance for the economy of the Kyrgyz Republic, the Hungarian participation, the timing of the project and the level of collateral. He also said that the Fund has chosen several priority areas for financing: alternative energy sources (small hydropower plants), agriculture (development of livestock breeding, beekeeping, development of fisheries).
«In addition, there are projects with the City Hall of Bishkek on street lighting and solid waste. They are being worked out now. We also focus on social projects that have made a significant contribution to the overall development of the city or region. Taking into account the situation with food security, we decided to put a great emphasis on the sectors related to the provision of essential products (vegetable oil, sugar, flour). We will prioritize projects in these sectors. But in general, we have no restrictions on sectors of funding. We are also interested in projects in the IT sector, creative economy and tourism. We could work with them,» Alymbek Orozbekov stressed.
