He inquired about what measures are being taken to ensure that the population can also obtain loans on more favorable terms.
Deputy Minister of Economy and Commerce Benazir Nurlanova responded that a representative of the National Bank should answer this question.
Deputy Chairman of the National Bank Medet Tairov clarified that Kyrgyzstan receives foreign currency loans at low interest rates, which are then converted into soms for the population.
Nurlanova also added that businesses are provided with interest-free loans; however, the deputy commented that the amount of these loans is too small.
“It is necessary to eliminate the interest of intermediary banks so that clients have the opportunity to access affordable loans. I understand that there are exchange rate differences and other factors affecting the cost of loans, but an interest rate of 1% should not increase to 15%,” he stated.
This issue was raised during the discussion of the draft Law “On Amendments to the Law of the Kyrgyz Republic ‘On the Exchange of Credit Information’,” which is being considered in the first reading.
Deputy Samakov emphasized that concessional external borrowings should reach the end borrowers in the form of accessible loans, rather than turning into a profitable business for commercial banks. In his opinion, the margin of intermediary banks, that is, the difference between the rates for attracting and issuing loans, is too high, making loans inaccessible for the population and small businesses.
Representatives of the NBKR and the Ministry of Economy noted that foreign currency loans are converted into soms taking into account the exchange rate and risks, and that interest-free and concessional programs for businesses are already in place, but their coverage is limited.
Deputy Chairman of the NBKR Medet Tairov confirmed that it is planned to obtain $120 million from the World Bank at 8% in the near future to support small and medium-sized businesses.
