Kyrgyz Jewelers to Receive Discounted Gold as Government Expands Industry Support
Kyrgyzstan’s Cabinet of Ministers has approved a package of support measures for the jewelry industry, implementing a directive from President Sadyr Japarov aimed at improving producers’ access to raw materials. Earlier, Japarov instructed the government to ensure that jewelers could obtain raw materials from the State Fund of Precious Metals and Precious Stones on more favorable terms. Under the new resolution, Kyrgyz jewelry manufacturers will be able to purchase domestically produced gold from the state at a 2% discount to the London Bullion Market Association (LBMA) fixing price. The State Fund will supply precious metals to jewelers in raw form, without the right of resale. To purchase gold, companies must either sign a direct contract with the fund or acquire the metal through a commodity exchange. Jewelers will also be granted deferred payment terms of up to 180 days. Transactions will be conducted at market prices in the national currency, the som. Access to gold scrap and refined bullion will be limited to companies operating under a special tax regime, with confirmed production capacity and compliance with requirements for accounting and the targeted use of raw materials. In addition, the government has approved a preferential lending mechanism for the jewelry sector. Authorities will subsidize interest rates on loans issued by state-owned banks, with approximately $11.5 million allocated to the program. The maximum loan amount will be $1 million, with a term of up to 60 months. The interest rate is set at 6% per annum, with a possible payment deferral of up to 180 days. Funds may be used for production modernization, equipment purchases, and the upgrading of manufacturing facilities. Eligible borrowers include legal entities and individual entrepreneurs registered with the State Tax Service. “The implementation of these initiatives will create a sustainable foundation for the development of the jewelry industry and increase its contribution to the national economy,” the Ministry of Economy and Commerce said in a statement, adding that the measures are expected to reduce costs, expand production, and create jobs. Stalbek Akmatov, head of the Kyrgyz Jewelers Association, told The Times of Central Asia that the industry had been advocating for such measures for many years. According to him, local producers were previously forced to purchase domestic gold at prices about 5% above London market levels, making imports from Russia and Turkey more common, despite higher logistics costs. “Now the situation will change, and the industry has real prospects for development,” Akmatov said.
