At a meeting of the Parliament’s Committee on Finance, Budget, Entrepreneurship, and Competition Development, the Ministry of Finance of the Kyrgyz Republic presented a draft loan agreement between Kyrgyzstan and the Asian Infrastructure Investment Bank.
According to Deputy Finance Minister Nurbek Akzholov, the Asian Infrastructure Investment Bank will provide an additional 7.3 billion Japanese yen ($50 million) as part of «Developing a Sustainable Finance Market for Micro, Small, and Medium Enterprises in the Kyrgyz Republic» project, for which the World Bank has already allocated $120 million.
The loan is provided for 32 years, of which seven years and six months will be at a floating rate. According to the Deputy Minister, the interest rate is 1 percent.
The official noted that the funds will be provided to small and medium-sized businesses to support «green projects.» Loans ranging from 100,000 soms to 50 million soms will be provided to entrepreneurs for five years at 8 percent annual interest.
Nurbek Akzholov reported that the $120 million allocated by the World Bank began being provided to entrepreneurs in early February.
Following the discussion, deputies approved the draft agreement.
