Russian-Kyrgyz fund to launch lending program in Kyrgyzstan
By Vusala Abbasova
The Russian-Kyrgyz Development Fund (RKDF) plans to launch a lending program geared toward small and medium-sized businesses in Kyrgyzstan.
News of the Fund was unveiled in a statement made at a press conference following the second session of the Russian-Kyrgyz Development Fund Board in Moscow on July 7.
Nursulu Akhmetova, the Chairman of the Russian-Kyrgyz Development Fund, said that a range of issues was discussed at the Fund Board session.
She added that the most important issues regarding the funding of small and medium-sized businesses had also been discussed.
Following the session, the board members agreed to finance a lending program to support Kyrgyz small and medium-sized businesses from Fund resources for a period of five years.
The Fund’s initial capital will amount to $500 million until it is fully funded at the end of May 2016, stressed Bakyt Kurmanbekov, a member of the RKDF.
The RKDF will issue highly competitive low-interest loans with an optional grace period for up to one year.
Oleg Pankratov, Kyrgyzstan's Minister of Economy and the RKDF Board Vice Chairman said that small and medium-sized businesses are of great importance to creating a stable economy.
Along with providing small and medium-sized businesses with credit, the Fund will provide larger projects with direct funding.
Pankratov also noted that large projects, such as investment in the garment industry and agricultural and export-oriented projects will be financed.
Moreover, some of the large projects that are already listed will be financed by this September, while loans to small and medium-sized businesses are scheduled to launch in August.
Currently, the financial resources of the RKDF amount to $250 million. Entrepreneurs who wish to get financial assistance from the Fund should work out their projects and proposals, taking into account specific requirements that can be found on the Fund's website.
The Fund was created in order to promote economic cooperation between Kyrgyzstan and Russia, modernize and develop the Kyrgyz economy, and for the effective use of opportunities on both sides for Eurasian economic integration.
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