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Development Fund to work with microcredit companies

The Russian-Kyrgyz Development Fund plans to cooperate with microcredit organizations. Chairman of the Board of RKDF Kubanychbek Kulmatov told today at a meeting of the Parliament.

The deputies are considering the bill which suggests permitting the fund to take agricultural land as a pledge. Kubanychbek Kulmatov said that such a system would allow working more effectively to support farmers in the regions of the country.

«We reach the regions now, we work more there. For example, they could give loans for the development of gardening, if it was possible to take these lands as collateral. So it would be easier for farmers. In addition, we are starting to work with microcredit companies now. They have simpler conditions for the population. The rules of lending will be the same as in commercial banks. If a person takes a loan directly in the fund, then we give it at 4 percent, and a commercial bank — at 5 percent. The difference is only one percent. This is insignificant for farmers," Kubanychbek Kulmatov said.