Kyrgyzstan does not have any “serious” investment products, the Russian-Kyrgyz Development Fund says

Almaty. February 29. Silkroadnews - There are almost no major investment products at the Kyrgyz market, member of the Russian-Kyrgyz Development Fund (RKDF) Almaz Aibalayev said, KyrTAG reports.
“At the moment we have seen very clearly our market has no major investment products. That is, today our banks cannot offer long credit terms to their customers at affordable rates; thus, we have lowered the lending bar. If earlier the fund used to consider directly the projects in the amount of 3 million and above, now we will look at projects in the amount of 1 million and above,” - said A.Aibalayev on Monday.
He also clarified “it shall not in any way create additional competition for the commercial banks, as banks do not give credits on the terms offered by the fund.”
“Thus, the conditions we offer cannot be received in our banks; consequently, we will not seize the customers from our banks. Basically, we will work with those customers who are interested to make very significant investment costs as a part of their projects,” - he explained.
A.Aibalayev noted that the major results achieved by the fund in the course of the Russian- Kyrgyz Development Fund Board are the easing credit conditions under its direct project.
“The Fund has significantly improved the credit conditions. The key issues are the credit terms have been increased up to 15 years, we will follow the sectoral direction, i.e. we have defined the priority sectors of the economy and based on the needs of these industries an appropriate timing will be set,” – the board member said.
He also noted the customer participation interest has been reduced from 20% to 15%.
“Earlier the participation interest required by the fund was not less than 20%, and now this threshold was lowered to 15%. As for the applications we received in 2015, we have analyzed them and saw, as a general, the numbers are quite acceptable. This is the rate that allows businesses to implement the projects,” - A.Aibalayev said.