Kyrgyzstan launches startup financing program

It is planned to launch a mechanism for financing startup projects and small businesses in the regions of the country from August in Kyrgyzstan. The National Bank reported.
According to the bank, the project is being implemented by the National Bank, the Russian-Kyrgyz Development Fund and Guarantee Fund OJSC. At the first stage, the parties discussed the implementation of the mechanism in Batken, Talas and Naryn regions.
The program is aimed at financing startup projects for the processing of agricultural products of local producers.
"The Russian-Kyrgyz Development Fund plans to allocate $ 1 million to finance startup projects, which will be evenly distributed among the three regions. About $ 350,000 will be allocated for each region. At the same time, the minimum credit threshold for direct financing will be $ 200,000," the message says.
Additionally, the RKDF announced a launch of a new program for financing startup projects of small businesses in all regions of the country, which are implemented with partner banks and the Guarantee Fund. The amount of financing will be from 300,000 to 1 million soms, which will be issued for the implementation of new business projects (ideas) at an interest rate (preliminary) 10 percent per annum for a period of up to five years. The project will be accompanied by trainings.
According to preliminary information, the practical implementation of the projects will begin in August 2019. The Guarantee Fund will provide guarantees to entrepreneurs whose startup projects will be selected for financing.