BISHKEK, Kyrgyzstan, April 8. The parliamentary committee of Kyrgyzstan on international affairs, defense, security, and migration has approved a draft law, in the first reading, for ratifying a credit agreement with the Asian Development Bank (ADB) for the Climate-Resilient Agricultural Value Chain Development Project, Trend reports.
According to the parliament, Bakyt Torobaev, the Minister of Water Resources, Agriculture, and Food Processing Industry, disclosed that the project's total amount is $40 million: $20 million as concessional credit from the ADB, $20 million as a grant from the ADB, and $850,000 as co-financing from Kyrgyzstan's Cabinet of Ministers.
It was noted that the loan term is 32 years, with an 8-year grace period. The interest rate is set at 1 percent per annum during the grace period and 1.5 percent per annum thereafter. Payments will be made semi-annually.
Torobaev emphasized that credit recipients could include trade and logistics centers, warehouse owners, primary processors, logistics companies, and other entities in the fruit and vegetable production and supply chains. The borrowers will be provided a 10-year loan at an interest rate of 8 percent per year.
The agreement for the project between the bank and Kyrgyzstan was signed on December 13, 2023, in the city of Bishkek.