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Guarantee Fund issues loan guarantees at 11 million soms

Created in Kyrgyzstan Guarantee Fund has issued to businessmen 16 guarantees at 11 million soms within four months. Deputy Economy Minister Daniyar Imanaliev told today at a press conference.

According to him, as of today, one of the most problematic and unresolved issues is insufficient loan collateral. Approximately 40–50 percent of business applications are rejected by commercial banks because of lack of collateral. The most difficult situation is in the regions.

Collateral is covered completely only in Bishkek and Osh cities. Collateral price is low in the regions, and it is not enough to get a loan.

«As part of anti-crisis measures in 2016, the government established the Guarantee Fund to support small and medium-sized enterprises. It was created in a short time and is fully working now," Daniyar Imanaliev said.

Capital of the fund is 282 million soms. 1 million soms was allocated from the budget, and 210 million soms is the grant of the Asian Development Bank. The Fund provides a guarantee at 1.5 percent of the amount, and from March 1, 2017 — at 2.5 percent.

The priority areas for support is production and processing of agricultural products, meat cluster, meat and dairy industry, fisheries, garment and textile, construction materials production, tourism, export of medical services, transportation and logistics services.

In addition, it is planned to use the capabilities of the Guarantee Fund in the implementation of the Cabinet program on support of export oriented and import-substituting industries.