Russian-Kyrgyz Development Fund finances over 1,600 projects
By Abdul Kerimkhanov
Russia is the leading trading partner of Kyrgyzstan. Kyrgyz-Russian cooperation is multidimensional in nature, characterized by the proximity of approaches to international and regional affairs, focusing on the development of Eurasian integration processes.
Over 1,600 projects worth more than $ 300 million were financed through the Russian-Kyrgyz Development Fund, said the President of Kyrgyzstan, Sooronbay Jeenbekov, during a meeting with residents of the Kadamzhai district of the Batken region.
As he noted, the Russian-Kyrgyz Development Fund financed over 1,600 projects. In general, more than $300 million was spent. Of these, more than 50 percent are directed to the processing industry and the agro-industrial complex.
The rate on loans for crop and livestock production was 10 percent per annum, for processing - 6 percent, for horticulture and livestock - 8 percent per annum.
In addition, funds allocated by the State Guarantee Fund increased by three times, guarantees for 755 million soms ($10.8 million) were issued for 656 projects.
The guarantee fund together with partner banks doubled the issuance of agricultural loans in the regions, as a result, they issued loans totaling approximately 3 billion soms ($43 million).
“80 percent of the financial resources aimed at supporting entrepreneurship went to Bishkek and Chui regions, while other regions went unheeded. Now we are paying attention to the villages. If small and medium businesses develop in the regions, there will be a stable economy, taxes will be received, jobs will be created, migration will be reduced,” said Jeenbekov.
He noted that this problem is closely related to the activities of the regions’ heads, districts and ayil okmotu.
‘‘We must try to attract funds to the countryside, through the Guarantee Fund it is necessary to take over the processing industry. Especially the local authorities should support those who export products,” the president stressed.
The head of state emphasized that the work on the regions’ development will not be stopped, it will be continued in 2019, adding that rural development will remain a priority of state policy even in 2020.
As he noted, the development of regions is considered a priority issue, specific cases of regional development will be continued.
To this end, 2019 has been declared the “Year of Regional Development and Digitalization of the Country”.
Diplomatic relations between Kyrgyzstan and Russia were established on March 20, 1992.
Kyrgyzstan has traditionally close relations with Russia - both countries are strategic partners, are included in such organizations and associations as the SCO, CSTO and the EEU.
Russia and Kyrgyzstan interact in the framework of such associations as the CIS, the Collective Security Treaty Organization (CSTO) and the Shanghai Cooperation Organization.
Kyrgyzstan joined the Eurasian Economic Union (EAEU) on August 12, 2015, of which Russia, Belarus, Kazakhstan and Armenia are also members.
Russia's exports to Kyrgyzstan include following types of goods: mineral products; food products and agricultural raw materials; metals and products from them; chemical industry products; machinery, equipment and vehicles; wood and pulp and paper products; textiles and footwear.
The structure of Russian imports consists of cars, equipment and vehicles; metals and products from them; textiles and footwear; food products and agricultural raw materials; chemical industry products.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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