IBC members banks to finance businesses in the pandemic

Eight commercial banks, including three IBC member banks – Optima Bank OJSC, Kyrgyz Investment and Credit Bank CJSC and Bai Tushum Bank OJSC" received another tranche from the Ministry of Finance to finance business entities.

4.2 billion soms were allocated to commercial banks for the implementation of the Entrepreneurship Entities Financing Program previously approved by the Government of the Kyrgyz Republic.

The Ministry of Finance allocates 2.2 billion soms and the National Bank of the Kyrgyz Republic through credit auctions – 2 billion soms, the press service of the Kyrgyz Government reports.

The implementation of the program is aimed at restoring and ensuring economic and social stability, supporting business entities in the context of the spread of coronavirus infection.

The funds will be used to finance fixed assets (purchase, renewal, expansion and modernization of fixed assets) and working capital (purchase of raw materials, components and spare parts), as well as to refinance loans.

In order to introduce digitalization of tax administration, preferential loans will be provided to small and medium-sized businesses that use components of fiscalization of tax procedures (electronic invoices, software cash registers and product labeling).

On July 20, 2020, the Ministry of Finance of the Kyrgyz Republic, within the framework of the Entrepreneurship Entities Financing Program, allocated another tranche to eight commercial banks for a total of KGS 1.4 billion:

Aiyl Bank OJSC -- 350 million soms;

RSK Bank OJSC – 350 million soms;

Bakai Bank OJSC -- 210 million soms;

Optima Bank OJSC – 200 million soms;

Commercial Bank “Kyrgyzstan" OJSC -- 120 million soms;

Kyrgyz Investment and Credit Bank CJSC -- 120 million soms;

Bai Tushum Bank OJSC -- 30 million soms;

Finanscreditbank OJSC -- 25 million soms.

Earlier, the Ministry of Finance of the Kyrgyz Republic held two auctions for commercial banks for a total amount of 840 million soms, as a result of which six commercial banks received funds for concessional lending to business entities.