The Committee on International Affairs, Defense, Security, and Migration has approved the ratification of a credit agreement between Kyrgyzstan and the Asian Development Bank for the project "Development of Climate-Resilient Value Chains in Agriculture" and a grant agreement for the same project. The agreements were signed on December 13, 2023, in Bishkek.
According to Bakyt Torobaev, Deputy Chairman of the Cabinet of Ministers and Minister of Water Resources, Agriculture, and Food Processing Industry, the project amount is $40 million, with $20 million as a concessional loan and grant each, and co-financing from the Cabinet of Ministers amounting to $850,000. The loan term is 32 years, with an eight-year grace period. The interest rate is 1% per annum during the grace period and 1.5% per annum thereafter, with semi-annual payments.
Torobaev emphasized that credit facilities can be accessed by trade and logistics centers, warehouse owners, primary processors, collectors, aggregators, logistics companies, and other entities in the fruit and vegetable production chains.
Deputy Minister of Finance Ruslan Tatikov explained that the choice of "Ayyl Bank" as the financier was due to its extensive branch network across all regions of the country. Tatikov mentioned that out of the $36 million, "Ayyl Bank" will only implement $23 million, while the rest will flow through other banks.
It is noted that borrowers can access credit for ten years at an 8% annual interest rate. Following discussions, the draft law was approved in the first reading.
