To expand its business model, the Entrepreneurship Development Fund became a microfinance company

The Kyrgyzstan Entrepreneurship Development Fund has officially changed its status from a microcredit company to a microfinance institution. This transformation expands the organization’s financial capabilities; specifically, the maximum loan amount for businesses increases from 5 million KGS to 9 million KGS, and in the future, the fund will be able to accept deposits.

The organization has completed its state re-registration with the Ministry of Justice and will now continue its operations under the name OJSC MFC “Entrepreneurship Development Fund.”

The transition to microfinance company status signifies an expansion of the fund’s business model. In addition to an 80% increase in the loan limit, the organization gains the ability to diversify its funding sources. Specifically, provided it holds the appropriate license from the National Bank, the MFC will be able to accept deposits and use these funds to provide further loans to entrepreneurs.

Ishenbek Medetov, Chairman of the Fund’s Board, called the transformation an important step in expanding state support for business.

“We view the transformation into a microfinance company not merely as a change in legal status, but as an important step toward increasing the effectiveness of government support for entrepreneurship,” he noted.

According to Medetov, increasing the maximum loan amount will allow entrepreneurs to raise more funds for purchasing equipment, modernizing production facilities, and implementing investment projects.