The Ministry of Water Resources, Agriculture, and Processing Industry of Kyrgyzstan will receive a $45 million loan and a $110,000 grant from the Islamic Development Bank.
The funds will be provided for a 25-year term. Of the total, $26 million will be provided at an interest rate of 1.5 percent, while the remaining $19 million will be subject to an additional Euribor base rate. The repayment grace period is seven years.
The funds will be allocated through Eldik Bank and Aiyl Bank as preferential leasing to agricultural producers and processors.
Entrepreneurs will be able to purchase agricultural machinery and equipment through state banks at an annual interest rate of 7 percent for a period of seven years. A 10 percent down payment is required.
The Committee on Budget, Economic, and Fiscal Policy of the Parliament approved the loan.
