Kyrgyz-Russian Development Fund to Change Its Operational Strategy
During the quarter of active work, the fund has already granted loans for 307 million soms to 63 projects. Farmers engaged in processing and production of agricultural products submitted 33 applications (51.3 percent), 18 projects (42.9 percent) relate to the manufacturing industry and modernization of production equipment, and 3 applications (4.8 percent) pertain to the mining and metallurgy industries. The majority of them – 55.6% – were submitted by entrepreneurs from the Chui region. Some threshold requirements for borrowers are difficult for farmers from other regions to meet: for example, under the lending conditions, the gross revenue for the previous year should not exceed 30 million soms, and no more than 300 people should be employed in the company. Thus, some potential clients were filtered out. However, companies that need subsidies the least received them without difficulty, which did not go unnoticed by journalists. The diplomat assured that soon the fund's activities will be conducted under new rules, and an external audit is not excluded – to avoid accusations of corruption, bias, and misappropriation of funds.
- The foundation was originally based on the idea of genuinely helping Kyrgyz entrepreneurs cope with the challenges associated with the republic's accession to the EAEU. As for specific provisions recorded in the fund's charter that turned out to be ineffective, we must always understand that any initiative should be tested in practice. The not entirely effective and positive start of the fund's operations, coupled with expectations that turned out to be directed in a completely different direction, has led to a reassessment of its foundations and principles of operation. The increase in the amount of assistance to Kyrgyz entrepreneurs is also being discussed: the fund is not a static organization and will adapt to the needs of Kyrgyz citizens, with the first steps already taken in this direction. However, the fund is an international organization, and it does not have the capacity to deal with each individual client. Therefore, we will seek to attract the experience of local structures in these areas. As for its activities – I see no obstacles to revising the main directions of the fund's work. It has just begun its operations and is conducting a self-audit; however, such an external check is quite possible, – believes Krutko.
