During the pandemic, approximately 8,000 companies received support through the Guarantee Fund

During the COVID-19 pandemic, approximately 8,000 micro, small, and medium-sized enterprises received support through the Kyrgyzstan Guarantee Fund. About 2,800 of these were led by women. This was reported by Hugh Riddle, the World Bank’s representative in Kyrgyzstan, at an event marking the fund’s 10th anniversary.

According to Riddell, the World Bank channeled approximately $40 million through the fund to support businesses as part of an anti-crisis project. The guarantee mechanism helps entrepreneurs obtain loans when they do not have sufficient collateral for the bank.

Riddell also discussed new areas of cooperation. The World Bank, in partnership with the Asian Infrastructure Investment Bank, has provided approximately $60 million as part of a support facility for the Guarantee Fund. A new project to develop sustainable financing for small and medium-sized enterprises includes a “green” guarantee mechanism. These guarantees can help finance, among other things, drip irrigation and electric vehicles.

Riddell identified digitalization as another priority. According to him, it will allow for faster issuance of guarantees, increase the transparency of the process, and improve credit risk assessment. The World Bank intends to continue supporting the development of Kyrgyzstan’s financial sector.