Interest-Free Loans for SMEs in Kyrgyzstan

The Ministry of Finance of Kyrgyzstan has published a report on the amount of interest-free loans granted to enterprises under the project, “Emergency Support to Micro, Small and Medium Enterprises” as of January 1st, 2024. The report indicates that loans of 5,921,800,000 som ($6,629,870) were granted to 8,929 entrepreneurs. This includes loans of up to 1,000,000 som ($11,196) to 7,788 entrepreneurs totaling 4,219,300,000 som ($47,238,020), and up to 3,000,000 som ($33,587) to 1,141 entrepreneurs totaling 1,702,400,000 som ($19,059,561).

The project, “Emergency Support to Micro, Small and Medium Enterprises,” which started its activities in September 2021, and will continue until June 2027, is supported and financed by the World Bank and the Asian Infrastructure Investment Bank (AIB). Several agreements with commercial banks have also been signed under the project.

Small and medium-sized businesses play a significant role in the private sector, which in turn forms the basis of Kyrgyzstan’s market economy. The main reason for this is the lack of the need for large start-up investments, and the speed of resource turnover.

Due to their scale, small businesses represent the largest layer of the economy, determining the socioeconomic and partly the political level of development within the country. They act as both direct producers and consumers of a wide range of goods and services. The small business sector operates mainly in local markets. Micro, small and medium-sized businesses account for approximately 50% of Kyrgyzstan’s GDP, and are fundamental to job creation in the country.

Times of Central Asia

Times of Central Asia

 Stephen M. Bland is a journalist, author, editor, commentator and researcher specialising in Central Asia and the Caucasus. Prior to joining The Times of Central Asia, he has worked for NGOs, think tanks, as the Central Asia expert on a forthcoming documentary series, for the BBC, The Diplomat, EurasiaNet, and numerous other publications.
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Published in 2016, his book on Central Asia was the winner of the Golden Laureate of Eurasian Literature. He is currently putting the finishing touches to a book about the Caucasus.
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www.stephenmbland.com

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