Zaparov has proposed that loans to businesses be granted based on the prospects of the projects, rather than solely on collateral

Kyrgyzstan plans to change its approach to business financing. When granting loans, banks will be required to consider not only collateral, but also the project’s potential and whether it is likely to generate a profit in the future. President Sadyr Zhaparov made this announcement on 21 October at a national conference on the country’s socio-economic development.

According to the Head of State, one of the main objectives is to provide businesses with long-term financing. At the same time, the performance of state-owned banks and development funds will be assessed based on results: how many projects they have helped to launch, how much investment they have attracted and how many jobs they have created.

State-owned banks and development funds must also make more active use of new methods of business financing, including via the stock market.

Furthermore, the authorities intend to simplify entrepreneurs’ access to capital, technology and new markets. To this end, there are plans to improve legislation on banking and investment, as well as to create conditions for attracting funds from abroad.

They wish to provide particular support to enterprises that manufacture modern goods, export services and help develop the export business.

However, the specific terms of the new funding have not yet been defined. It is not yet known which collateral requirements will change, who will be eligible for funding, or under what conditions.