Ayil Bank Opened Kumtor-Chakan Line of Microcredit to Support Rural Population of Kyrgyzstan

published: 19 November 2013

Considering the importance of the continued efforts aimed at supporting rural population, the Government of the Kyrgyz Republic, as part of Kumtor Gold Company’s sponsorship optimization program, has selected Ayil Bank JSC as an agent entrusted to extend easy microloans to rural population through a special lending product, Kumtor-Chakan. The said decision is based on Ayil Bank’s years of experience in loan provision for village residents and taken with due account for the Bank’s wide regional network, which makes it possible to provide as many loans and other banking services countrywide as possible.

Kumtor Gold Company’s sponsorship which is to be transferred by Ala-Too Finance Microcredit Agency to Ayil Bank JSC is estimated at approximately 808 mln soms. A further 70 mln soms in the existing loan portfolio of the regional microcredit agencies is supposed to be transferred at a later date.

Upon receiving the full amount of assets (as cash and loan portfolio), the Bank is planning to use Kumtor Gold Company’s contribution for extending easy loans, approximately 100 mln soms per month. In other words, the loans are supposed to be extended to 2,000 to 3,000 people every month. Thus, all the funds received will be allocated within 8 to 9 months.

The Kumtor-Chakan loan product is designed to give vulnerable groups of rural population access to financial resources. Moreover, Ayil Bank is planning to grant credits on what is regarded as easy terms by Kyrgyzstan’s banking institutions, i.e. at an interest rate of 10% with a loan value varying from 5,000 soms to 50,000 and a loan period of one year.

Rural residents are expected to get funds they can use to boost plant cultivation, animal husbandry, farming enterprise and service industry in rural areas. The main purpose of the Kumtor-Chakan loan product is to create conditions facilitating income-bearing activities in the countryside and thereby contribute to the efforts aimed at improving the living standards of the people and ensuring economic growth in the regions.