BISHKEK, Kyrgyzstan, November 14. The Guarantee Fund of Kyrgyzstan, within the frame of the Component 2 of the World Bank's "Emergency Support for Micro, Small, and Medium-sized Enterprises" project, has issued 4,160 guarantees to businesses as of November 13, Trend reports.
The total value of these guarantees, as reported by the fund, amounts to 1.5 billion soms ($16.793 million).
This WB’s project is being executed by the Ministry of Finance of Kyrgyzstan in collaboration with the Guarantee Fund. The fund serves as an agent, providing portfolio guarantees to business representatives.
The Component 2 of the project, the "Portfolio Risk-Sharing Facility" (PRSF), has been in progress since the beginning of 2022.
According to the bank, the purpose of the component is to decrease the likelihood of the financial sector withdrawing or reducing support to MSMEs. Additionally, it aims to make sure that these enterprises continue to receive credit or financial assistance during the recovery period that follows the crisis (Covid-19).
Currently, the Guarantee Fund has entered into six cooperation agreements with its partner banks under the PRSF. These agreements aim to establish the procedures and conditions for the Guarantee Fund to provide portfolio credit guarantees. Within the framework of PRSF, the banks have approved loans exceeding 3.2 billion soms ($35 million) for entrepreneurs.