The Entrepreneurship Development Fund is to be transformed into a microfinance company

OJSC MKK ‘Entrepreneurship Development Fund’ is to be transformed into a microfinance company. The decision was taken at an extraordinary general meeting of shareholders, the sole shareholder of which is the Ministry of Finance of the Kyrgyz Republic.

During the meeting, the fund’s management presented information on its current activities, financial and economic indicators, the implementation of state programmes to support entrepreneurship, and prospects for further development.

Following the transformation, the fund will be granted broader powers in the area of financial operations. Specifically, this includes the ability to raise additional funds through new financing instruments, carry out foreign exchange transactions and accept deposits from the public within the framework of the law.

There are also plans to increase the maximum amount of funding available to entrepreneurs. Currently, the fund issues loans of up to 5 million KGS; following the restructuring, this amount may be increased to 9 million KGS. This is expected to enable greater support for small and medium-sized enterprises and to finance more capital-intensive projects.

Among the key areas of development is the issuance of corporate securities and their listing on the stock exchange. This will open up access to additional sources of funding, including foreign investors, and increase the total volume of funds available for business lending.

A separate initiative will be the launch of an ‘Islamic window’, which will enable financial services to be provided in accordance with the principles of Islamic finance.

In addition, the fund will continue its digital transformation. Plans include modernising the automated banking system and introducing digital solutions to speed up the processing of applications and improve the quality of customer service.

Following the meeting, the shareholder instructed the fund to implement measures to transform it into a microfinance company and to enhance the effectiveness of state support for entrepreneurship.