published: 26 April 2021
Three microcredit agencies, ‘Jety-Oguz’, ‘Ton Finance’ and ‘Balykchy Finance’, opened with the support of Kumtor Gold Company, help develop the small and medium-sized business in Jety-Oguz, Ton and Balykchy of Issyk-Kul region. These financial institutions have been issuing loans at 12 percent per annum to support local SMEs and farming enterprises for already 15 years. Hundreds of entrepreneurs achieved success thanks to their support. Previously opened enterprises are picking up the pace, the new ones are well on the way to success.
Here are three success stories of recently implemented business projects.
Resident of Balykchy Gulnaz Kalygulova runs a private sewing shop, which produces, packs and sells bed cloths and blankets by wholesale. Volumes of production are still small: they sew up to a hundred sets per month, but will be picking up the pace. They are planning to sew lace gift sets and toshoks (national patchwork quilts). A few months ago the business lady took out a KGS 500,000 loan from Balykchy Finance for three years at 12 percent per annum. The money was used for creation of additional jobs, purchase of garment accessories, fabrics and equipment.
“It is unprofitable to take out loans from commercial banks, where the loan rate is 28% and above. Therefore, a low-interest loan for business development is a great help, thank Kumtor,” Gulnaz Kalygulova says.
In 2020, young businessman Alisher Abdullaev from Bokonbaevo of Ton district opened a bakery shop in his own house. The villager took out a KGS 350,000 development loan from the microcredit agency ‘Ton Finance’ in the fall of 2020. He used these funds to complete the construction of the premises, expand the production area and purchase the equipment – a dough-maker and two stoves. He bakes a homemade bread, muffins and buns, which are delivered to the shelves of local stores. Bakery products of the baker from Bokonbaevo are well known and loved even in Kadji-Sai, Jety-Oguz and Karakol.
In December 2020, resident of Bokonbaevo Baktygul Kabaeva took out a KGS 400,000 loan at Ton Finance to open a public bath. A vast crowd of people came to the opening of the bath on March 8, 2021, and there is no end of clients even today, people reserve a place in a queue. Up to 40 villagers come to take a bath every day, on weekends their number increases to 70.
Microcredit Agency ‘Balykchy Finance’ was opened in 2012 with the support of Kumtor Gold Company. Its start-up capital was KGS 15 million. After eight years, the agency has increased its loan portfolio to KGS 62 million. Kumtor Gold Company continues to support Balykchy Finance agency. Last year, they earmarked more than KGS 4 million to foster the activities of Balykchy Finance. Under the terms of microlending, residents of Balykchy may get a loan ranging from KGS 50,000 to 500,000 for the development of production and services at 12 percent per annum. Since the beginning of 2021, the loan office has already funded 64 initiatives.
Microcredit Agency ‘Ton Finance’ was opened in 2011 with the support of Kumtor Gold Company. Its start-up capital was KGS 14 million. Today, the loan portfolio of the financial institution amounts to KGS 87 million. Last year, Kumtor earmarked about KGS 3 million as an additional aid to Ton Finance. The agency issues soft loans ranging from KGS 50,000 to 500,000 to residents of Ton district. The loan rate is 10-12 percent per annum; the money is given for the development of agriculture, industry, tourism, small and medium-sized businesses. Last year, the volume of gross loans amounted to KGS 58 million. Since the beginning of 2021, Ton Finance has supported projects to the amount exceeding KGS 14.7 million. By the way, the agency closed the difficult year of 2020 with a 100% return on investment. Even exporters of fruits and vegetables, who faced with unforeseen difficulties – the border closure due to the pandemic, were able to pay off their debts.