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Wednesday, January 29th, 2020

Country’s financial institutions increase share of financing regional projects

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by January 14, 2020 General

Kyrgyz President Sooronbay Jeenbekov received on Tuesday Chairmen of the Board of the Russian-Kyrgyz Development Fund (RKDF) Erkin Asrandiyev, Aiyl Bank OJSC Baktybek Shamkeyev, Guarantee Fund OJSC Malik Abakirov and RSK Bank OJSC Azizbek Omorkulov, his press service said.

The President emphasized the priority areas of activity of the country’s financial institutions should be the support of processing, clothing and textile industry and tourism, as well as small energy projects and development of trade and logistics infrastructure.

He highlighted the processing industry, including the processing of meat, milk, wool and leather, which is the main raw material in rural areas.

“The growth of export potential, support for these areas will contribute to the creation of new jobs in the regions and reduce internal migration,” Jeenbekov said.

The heads of the country’s financial institutions provided information on the volume of project financing and the issuance of soft loans for 2019.

Chairman of the RKDF Board Erkin Asrandiyev said at the end of last year, the Fund approved 724 projects worth $77.5 million. Compared to 2018, this figure increased by 80%. Of the total number of approved projects, 88% were in the regions of the country.

In 2019, Aiyl Bank OJSC extended 53,957 loans worth KGS 12 billion. Of this amount, KGS 10.1 billion, or 84%, were allocated to finance regional projects. The share of regional financing increased by 9% compared to 2018.

In 2019, RSK Bank OJSC disbursed 10,335 loans for the total amount of KGS 8.4 billion. The share of loans issued in the regions of the country has increased, they amounted to KGS 5.5 billion or 66% of the total amount of loans.

Also, upon the totals of 2019, 946 guarantees for the amount of KGS 921 million were issued by the Guarantee Fund OJSC. This is almost twice as much as in 2018, the increase in guarantee amounts was 82%, the share of regional financing increased to 66%.

The heads of the country’s financial institutions said most of the funding went to projects in agriculture, processing and industrial sectors.

Jeenbekov emphasized the activities of the financial institutions in 2020 should also be focused on stimulating regional development.

He pointed out the particular importance of increasing the availability of credits in the regions, drew attention to the strengthening of funding for projects in remote and border areas, and called for further work on digitalization of banking services.

Source: Kyrgyz National News Agency

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