The Islamic Development Bank will provide $44.6 million to two banks in Kyrgyzstan to support farmers

The Islamic Development Bank will provide $44.61 million to two state-owned banks in Kyrgyzstan to finance the purchase of agricultural machinery and equipment. The funds will be provided through the Islamic banking windows of OJSC “ABank” and OJSC “Eldik Bank” for a term of up to seven years at an interest rate of 6%.

The relevant agency agreement was signed by the Ministry of Agriculture, the Ministry of Finance, “ABank,” and “Eldik Bank” as part of Project KGZ-1037 to promote the mechanization of agriculture.

Farming enterprises, entrepreneurs, and individuals will be eligible for financing. To this end, the Islamic financial products “Murabaha” and “Ijara Muntahiyya Bittamlik” are available.

The annual rate of return will be 6%, and the financing term will be up to seven years.

The project aims to expand agricultural producers’ access to modern equipment and to develop the country’s agricultural sector.