One of deputies of Kyrgyzstan complained about unfavorable conditions the entrepreneurs face in the Russian-Kyrgyz Development Fund

Almaty. June 22. Silkroadnews – Deputy of “Respublika-Ata-Jurt” faction Mirlan Zheenchoroev reported on the problems in activities of the Russian-Kyrgyz Development Fund, KyrTAG writes.

“Initially the fund has been created to encourage businesses, develop production, in reality though it turned different. If a person is lucky and got a loan, he/she then starts to pay interest from the first month. How shall such enterprise operate?” M. Zheenchoroev said at the meeting of Parliament of the Kyrgyz Republic on Wednesday.
Also, he added, “there are problems with the pledge”.

“Now the interest rates on pledge of credit reaches 100-150%. If local investor wants to build a small plant for $5-10 million, he/she shall put on security the property for $30 million! Besides, he/she shall also put his/her business on a bail. What are the investments then? The objectives this fund has been created for cannot be achieved here,” he added.

M. Zheenchoroev noted that in other countries where such funds operate the investor first covers only 20% of the cost of equipment and collateral, the rest is undertaken by the fund.