(MENAFN- AzerNews) By Kamila Aliyeva
The government of Kyrgyzstan will allocate 2.6 billion soms to support exports and import substitution.
This was stated by Kyrgyz Deputy Prime Minister Tolkunbek Abdygulov during a working meeting with the Prime Minister Sapar Isakov on October 4, KyrTag reported.
"A program to support exporters has been developed within the framework of the project of the Cabinet of Ministers ‘Jany Dorogo Kyrk Kadam'. Necessary changes in the budget, which are supported by the parliamentary profile committee, have already been made. The government will allocate 2.6 billion soms from the budget to subsidize interest rates in order to support domestic producers focused on export and import substitution by the end of the year," he said.
The financing scheme is similar to the program of support of agricultural producers,
"Commercial banks themselves select participants, work with borrowers, give them the necessary funds and, then, the funds only for subsidizing interest rates are allocated from the budget," the deputy prime minister said.
Abdygulov also noted that within the framework of the program, all enterprises that will work for export should present their projects, licenses and certificates of quality. The enterprises can apply to the bank in case they possess all the necessary documents.
Azizbek Omorkulov, Chairman ofthe Board of RSK Bank JSC, informed that bythe end ofthe year it is planned todraw fundsin the amount of 300 million soms.
'Wewill beable tofinance basic and current assets. Tofinance fixed assets, wewill issue aloan for upto5years, for working capital— uptothree years. Inthis case, itisnecessary tohave acertificate oforigin and the absence ofanegative credit history and debts for taxes and other obligations and payments tothe budget. Priority will begiven toenterprises that have contracts for the supply ofproducts toneighboring countries, contracts for the purchase ofraw materials from local producers and with apositive dynamics ofjob growth. AtonceI will say that incase ofmisuse ofthe loan, its rate will stop tobepreferential and will increase to30percent, he said.
In 2016, the volume of foreign trade amounted to $5.4 billion and demonstrated a decrease by 1.4 percent compared with 2015. Agricultural and engineering products occupied the largest share in the structure of exports. Last year the volume of coal exports amounted to 29.2 percent, glass products to27.4 percent, ores and precious metals to45.4 percent in the total export structure
Kyrgyzstan's economy advanced 3.8 percent year-on-year in 2016, compared to 3.5 percent growth a year earlier. Industrial output increased by 4.9 percent, driven by metal ores, manufacture of refined petroleum products, food products and production of precious metals.
In 2016, the GDP growth has reached 3.8 percent. The forecasts say that the real GDP growth of Kyrgyzstan will be 2.9 percent in 2017. The risks which can affect the GDP growth in 2017 are instability of the global economy, dependence of the economy on world prices for gold and energy resources, risks for increase of inflation due to the growth of food prices and others.
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