After analyzing the available loan products, the Russian-Kyrgyz Development Fund (RKDF) adopted a new program to support small and medium-sized businesses. The head of the fund, Artem Novikov, announced on Wednesday.
The main innovation is that the fund returns funding for projects in the national currency. By the end of the year, it is planned to allocate at least 600 million soms for these purposes. If necessary, the RKDF is ready to increase the amount of funding, but there is a limitation.
Loans in the national currency can be used only for the purchase of raw materials, components and goods made in Kyrgyzstan and purchase of services from domestic entrepreneurs.
In addition, the RKDF decided that it would also be possible to take loans through commercial banks to finance working capital upon investment costs. Taking into account the situation in the regions with the availability of banking infrastructure, the fund will allow, at the discretion of banks, to issue part of the working capital in cash. Up to 50 percent of the amount of allocated funding will be allowed to be used for the purchase of commercial and other real estate necessary for the implementation of projects in the regions.
«The SME support program will finance projects from $20,000 to $1 million. Of course, we cannot tell banks which projects to approve, what clients to attract, how to use the funds. But the fund works with 14 commercial banks. Each of them can provide funding from the RKDF. In the absence or shortage of collateral, our entrepreneurs can also apply to the Guarantee Fund, which is designed to solve these problems,» Artem Novikov said.
The fund plans to consider projects on food security, export support, and job creation in the regions in the near future.
