BISHKEK, Kyrgyzstan, December 12. Kyrgyzstan will launch the Unified Producers Financing project on January 1, 2025, Trend reports.
According to the country’s Ministry of Water Resources, Agriculture, and Food Processing Industry, the project is aimed at encouraging the consolidation of small-scale production and providing state support to united producers through affordable and preferential credit options.
The project will run for five years and is financed through the national budget, as well as by the Aiyl Bank and Eldik Bank.
Under the initiative, livestock and crop producers in consolidated groups will be eligible for loans of up to 25 million soms (around $288,018) at 6 percent interest for six months.
Additionally, processing industry enterprises forming cluster associations with producer groups will have access to loans of up to 150 million soms ($1.7 million), also at 6 percent interest for six months.
The project will also support entities adopting highly efficient, resource-saving technologies such as drip irrigation, sprinkler systems, greenhouse farming, and the leasing of agricultural equipment and livestock.
These businesses, forming joint enterprises, will be eligible for loans up to 50 million soms ($576,036) at 6 percent for six months, secured by collateral.
The program is part of the government's strategy to support agricultural and industrial development, enhance productivity, and foster the growth of sustainable business practices in rural areas.