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Kyrgyzstan changes conditions of concessional lending in favor of export

The Kyrgyz government changes the conditions of concessional lending in order the exporters can get more support. The head of the Cabinet Sooronbay Jeenbekov announced today at a government meeting.

According to him, exports increased by 5.1 percent compared to 2015. At the same time, the foreign trade turnover decreased due to 20 percent reduction in imports. The Cabinet believes it is a good indicator, since the volume of exports to the countries of the union increased by 4.6 percent. Deliveries to the European Union increased by 44 percent.

«We have great opportunities. It is necessary to develop and improve the program for export support. This question was raised several times. We need to create the conditions for the development of export-oriented companies. It is necessary to develop a national standardization and certification system to meet international standards," Sooronbay Jeenbekov noted.

He recalled that nine technical regulations of the Eurasian Economic Union on food safety will come into force on August 12, 2017. Until that time, the head of the government instructed to carry out a large-scale information campaign. Sooronbay Jeenbekov also touched upon the concessional lending programs.

As of today, 80 percent of all preferential loans are issued for cattle breeding sphere, 10 percent -crop farming, and 10 percent — for the processing of products.

Since 2017, the government plans to move away from this system. The emphasis this year is planned to be put on export-oriented businesses. They will be able to obtain preferential loans at six percent per annum for three years. The Cabinet expects that approximately 20 percent of all loans will be issued specifically for such enterprises.

«It is necessary to create logistics centers, to modernize the laboratories. We have to work hard to make our veterinary control system equivalent to EEU standards. The State Phytosanitary Inspection will have to do a great job. Local government heads should help them. This is work for the future," Sooronbay Jeenbekov concluded.