OJSC “Guarantee fund” – a financial instrument for development
OJSC “Guarantee Fund” is aimed at providing access to financing for small and medium-sized enterprises (SMEs) in case of insufficient collateral throughout the Kyrgyz Republic.
The chairman of the Management Board of the Guarantee Fund M.-A. Abakirov: “Our Fund has developed its own program to support entrepreneurs in the amount of 1 billion KGS, and has started its implementation in a pilot mode”
Today, on September 7, the Chairman of the Management Board of the Guarantee Fund M.-A. Abakirov gave a press conference on the start of the program implementation developed by the Fund in accordance with the Anti-Crisis Plan of the Government of the Kyrgyz Republic to reduce the negative impact on economic and social stability due to the spread of the coronavirus COVID-19, according to which support will be provided to entrepreneurs in the amount of 14 billion KGS at the initial stage, and subsequently this amount will be increased to 40 billion KGS.
During the press conference, M.-A. Abakirov spoke about the goals of the program, directions of financing, about the conditions for placing funds on special accounts of partner banks, and also shared the expected results of the program.
“Within the framework of this program, the Guarantee Fund provides for support of about 1000 entrepreneurs of the country in the amount of 1 billion KGS, and the loan amount issued under our guarantees, according to our forecasts, will exceed 2 billion KGS,” M.-A. Abakirov informed.
“To date, within the framework of this program, we have already provided more than 10 guarantees for a total amount of over 15 million KGS, the amount of loans exceeded 35 million KGS” – M.-A. Abakirov presented to the attention of the media representatives the information on the progress of the program implementation in a pilot mode.
The terms and conditions provided in the program are currently very acceptable.
“The loan amount within the framework of the program is provided for up to 10 million KGS, the term for granting is up to 60 months, and the interest rate should not exceed 10%,” the chairman of the Guarantee Fund said.
Also at the press conference, information was announced on the activities of the Guarantee Fund following the results of eight months of 2020 and a comparative analysis of indicators for the same period of 2019 was presented.
So, for eight months of 2020, the Guarantee Fund provided 1,083 guarantees, which exceeded the number of guarantees provided for the eight months of 2019 by 370%. The total amount of issued guarantees amounted to more than 466 million KGS, and the total amount of loans issued under the guarantees of the Guarantee Fund reached almost 2 billion KGS.
At the end of the conference, M.- A. Abakirov shared information about the activities of the Fund from the beginning of its activities to the present day, according to which, the Guarantee Fund provided support to entrepreneurs, providing almost 2,700 guarantees worth more than 2 billion 142 million KGS, while the amount of loans issued under the guarantees provided exceeded 7.6 billion KGS.
International cooperation. On April 6, a video conference was held with the participation of Malik Abakirov, Chairman of the Management Board of OJSC “Guarantee Fund”,...read more
LECTURE ON GUARANTEES AND THE “GUARANTEE FUND” WAS HELD FOR STUDENTS OF THE INSTITUTE OF ECONOMICS AND MANAGEMENT OF KSU NAMED AFTER I. ARABAEVA
Guest lectures. On April 5, 2021, the head of the strategic development department of OJSC “Guarantee Fund”, candidate of economic sciences Abdil Tashirov gave a guest lecture for students and teachers of the Institute of Economics and Management of KSU...read more
As part of Global Money Week. On March 24-25, 2021, as part of the “Global Money Week” celebrated in the country, lectures were held at the Kyrgyz National and Kyrgyz Economic Universities on the topic “Guarantee Fund as an Instrument for the...read more
THE COUNTRY’S FINANCIAL INSTITUTIONS WILL FOCUS ON THE EXPANSION OF DIGITAL BANKING SERVICES IN 2021
At the reception of the President of the Kyrgyz Republic. On March 24, President of the Kyrgyz Republic Sadyr Zhaparov received Chairman of the Board of «Ayyl Bank» OJSC Ulan Bukabayev, «RSK Bank» OJSC Azizbek Omorkulov and «Guarantee Fund» OJSC Malik Abakirov. The...read more
OJSC “GUARANTEE FUND” TARGET GROUP
Entrepreneurs (including women entrepreneurs) of SME segment with activities focused on the production and processing of agricultural products, industry, services, as well as SMEs with export-oriented and import-substituting activities.
OJSC “GUARANTEE FUND” OPERATING CONDITIONS
Maximum amount of a guarantee is up to 30 million KGS. The volume of a guarantee must no exceed 50% of the loan amount.
The process of obtaining a loan with OJSC “Guarantee Fund” More…
The client comes to the bank for a loan and if they cannot get the necessary amount due to insufficient collateral, the client and the bank apply to OJSC “Guarantee Fund” for guarantee.
OJSC “GUARANTEE FUND” MISSION
The mission of the Fund is to ensure the dynamic and sustainable growth of the economy of the Kyrgyz Republic by developing a market of guarantees, to increase the share of SMEs to the country’s GDP and to improve the population’s welfare.
OJSC “GUARANTEE FUND” FUNCTIONS
- Providing a guarantee to entrepreneurs, including exporters;
- Participation in the Program of the Government of the Kyrgyz Republic “Financing of Agriculture”;
- Providing a guarantee to agricultural producers;
- Assistance in the development of small and medium enterprises.
OJSC “GUARANTEE FUND” VISION
The Fund will become a stable developing financial organization of the Kyrgyz Republic providing SMEs with the ability to obtain affordable loans by development of a guarantee system.
By the end of 2020 the Fund will become the leading financial institution in the market of the guarantee provision for SMEs and will contribute to attract potential local and international investors.
OJSC “GUARANTEE FUND” (THE FUND) AND REGIONAL GUARANTEE FUNDS (RGF) INTERACTION
- Institutional development of RGF;
- Possibility of RGF’s partial capitalization, Fund – 70%; local government-30%;
- Opening of Fund’s branches in regions with no RGF and no possibility of capitalization from local government;
- Conducting potential customer evaluation by RGF to provide guarantees under a contract with the Fund;
- Providing a reguarantee for large projects
- Issuance of guarantees to businessmen.