Commodity producers have utilised only 3% of the preferential loans allocated to them

Kyrgyzstan has taken another step towards consolidating small-scale agricultural production. As part of the ‘Financing of United Commodity Producers’ project, approved in December last year, farmers received their first preferential loans.

According to the Ministry of Finance, as of 11 September, ten united agricultural producers across the country have been provided with financing in the amount of 72.2 million soms. The total volume of the programme is 2.2 billion soms. It is operated by state-owned banks — Ayil Bank and Eldik Bank.

The initiative aims to solve one of the key problems of the industry — the fragmentation of small farms. The consolidation of producers should increase their competitiveness, simplify access to markets and credit resources, and contribute to the formation of sustainable cooperatives.