The Ministry of Finance has been instructed to allocate from the state budget for 2026 99 million 876 thousand 695.44 soms for financial and credit organizations participating in the project, after coordination with the relevant committee of the Jogorku Kenesh.
These funds will be used for additional interest rate subsidies on preferential loans for entrepreneurs, in addition to the previously allocated 300 million soms.
Thus, the total funding volume for the project in 2026 will amount to 399 million 876 thousand 695.44 soms.
In addition, the Ministry of Finance must also provide for funding for the program in subsequent years and consider the necessary changes in the amendments to the law on the republican budget for 2026 and the planned years 2027–2028.
The document also makes amendments to the Cabinet's order of January 12, 2026, No. 1-t, updating the procedure for project implementation.
The main lending conditions through financial and credit organizations have been clarified, including adherence to Islamic principles: the final interest rate will be 6% per annum.
The program covers four areas:
investments (up to 60 months),
working capital replenishment (up to 36 months),
refinancing of received loans (up to 18 months)
support for beginner entrepreneurs and startups (up to 18 months).
The maximum loan amounts depend on the borrower's category and the purpose of the loan.
For the textile industry, special conditions have been established: for existing enterprises, the maximum loan amount is up to 100 million soms regardless of the borrower's category, while for startups, it is up to 1 million soms.
When distributing loans, there is a requirement: at least 60% of the volume must be directed to regions, and no more than 40% to the cities of Bishkek and Osh (an exception is made for the textile industry).
Batken region has become a priority region for the implementation of the project, and the textile industry is one of the priority areas.
Additionally, the document updates the subsidy parameters: the subsidy rate is 11.99% (with an average nominal rate of 17.99% and a final rate of 6%). Calculation coefficients for subsidies depending on the loan term (18, 36, 48, and 60 months) have also been specified, with the distribution of payments by years within the budget allocations.
| Target Sector | Final Interest Rate | Loan Term | Grace Period | Loan Amount | |
| 1 | Investments: purchase of new equipment, reconstruction, modernization of fixed assets | 6% per annum | 60 months | Up to 6 months | Individuals and legal entities: 1) small enterprises (revenue up to 8 million soms) - up to 30 million soms; 2) medium enterprises (revenue up to 50 million soms) - up to 50 million soms |
| 2 | For replenishing working capital: purchasing raw materials | 6% per annum | 36 months | Up to 6 months | Individuals and legal entities: 1) small enterprises - up to 10 million soms; 2) medium enterprises - up to 20 million soms |
| 3 | For refinancing loans | 6% per annum | 18 months | Up to 6 months | Individuals and legal entities: 1) small enterprises - up to 7 million soms; 2) medium enterprises - up to 10 million soms |
| 4 | For supporting beginner entrepreneurs, startups | 6% per annum | 18 months | Up to 6 months | Individuals and legal entities - up to 1 million soms |
Project Implementation
The procedure for implementing the project "Preferential Lending for Entrepreneurship in the Kyrgyz Republic through Interest Rate Subsidies"
(Revision of the Cabinet of Ministers of the Kyrgyz Republic order dated February 13, 2026, No. 77-t)
Chapter 1. General Provisions
The goal of the project "Preferential Lending for Entrepreneurship in the Kyrgyz Republic through Interest Rate Subsidies" is to reduce the cost of borrowed funds for small and medium-sized businesses, ensure access to financing, stimulate economic growth, and develop the regions of the Kyrgyz Republic by providing affordable loans.
The project implementation period is 60 months.
Funding for the project is provided from the republican budget and credit resources of open joint-stock companies "Ayil Bank," "Eldik Bank," the microcredit company "Fund for Entrepreneurship Development," and other willing financial and credit organizations.
Financial parameters of the project:
- total project amount - 3,699,136,868.06 soms;
- subsidy amount for 2026 - 399,876,695.44 soms.
The project implementation is scheduled to begin in January 2026. Credit funds will be provided by financial and credit organizations throughout 2026.
The responsible executors are the Ministry of Finance of the Kyrgyz Republic, the Ministry of Economy and Commerce, as well as the financial and credit organizations participating in the project.
Within the framework of the project in 2026, financial and credit organizations provide loans to small and medium-sized enterprises at preferential rates, including Islamic principles, in accordance with the banking legislation of the Kyrgyz Republic.
The Cabinet of Ministers of the Kyrgyz Republic subsidizes interest rates on loans provided by financial and credit organizations at the expense of the republican budget for the relevant years.
The procedure for providing loans is carried out in accordance with the banking legislation of the Kyrgyz Republic.
All risks of loan repayment are borne by financial and credit organizations, and the selection of borrowers is carried out according to internal procedures.
Financial and credit organizations may provide loans with the guarantee of the open joint-stock company "Guarantee Fund" in the established manner.
Financial and credit organizations are responsible for meeting the project conditions.
Financial and credit organizations must lend to borrowers, including under Islamic principles, under the following conditions:
| No. | Target Sector | Final Interest Rate | Loan Term | Grace Period | Loan Amount |
| 1 | Investments: purchase of new equipment, reconstruction | 6% per annum | 60 months | Up to 6 months | Individuals and legal entities: 1) small enterprises - up to 30 million soms; 2) medium enterprises - up to 50 million soms |
| 2 | Replenishing working capital | 6% per annum | 36 months | Up to 6 months | Individuals and legal entities: 1) small enterprises - up to 10 million soms; 2) medium enterprises - up to 20 million soms |
| 3 | Refinancing loans | 6% per annum | 18 months | Up to 6 months | Individuals and legal entities: 1) small enterprises - up to 7 million soms; 2) medium enterprises - up to 10 million soms |
| 4 | Development of businesses for beginner entrepreneurs | 6% per annum | 18 months | Up to 6 months | Individuals and legal entities - up to 1 million soms |
For the textile industry, the maximum loan amount for existing enterprises is up to 100 million soms regardless of the borrower's category. For startups in this industry, it is up to 1 million soms for a term of up to 18 months.
Financial and credit organizations have the right to establish a longer grace period at their own expense.
(This clause has been rendered invalid according to the order of the Cabinet of Ministers of the Kyrgyz Republic dated February 13, 2026, No. 77-t)
In case of misuse of the loan, financial and credit organizations may apply liability measures in accordance with the loan agreement.
If borrowers do not have sufficient collateral, they may apply to the open joint-stock company "Guarantee Fund" for obtaining a guarantee.
Startups may be granted loans of up to 1 million soms for a term of up to 18 months through a simplified procedure.
The volume of lending must be at least 60 percent in regions and no more than 40 percent in Bishkek and Osh, except for the textile industry.
Batken region is a priority region for the implementation of the project.
At least 30% of borrowers must be women entrepreneurs or enterprises with a female participation share of over 50%.
Refinancing of debts is possible within 30% of the total volume of lending.
Participation of small and medium-sized enterprises with minor overdue loans over the last 36 months is allowed.
Financial and credit organizations must consider applications from the textile and garment industry as a priority.
The textile industry is a priority direction of the project.
Chapter 2. Priority Directions
Credit funds are allocated in the following directions, excluding economic entities that have received preferential lending under other programs:
- production and processing of food products, excluding tobacco;
- textile and garment production, shoe and leather goods manufacturing;
- production and processing of wooden and paper products;
- chemical products;
- pharmaceutical products;
- production of non-metallic mineral products;
- production of metal products;
- production of electronics and electrical equipment;
- construction materials;
- tourism and related services;
- educational and scientific activities;
- handicrafts;
- startups;
- healthcare;
- export activities;
- IT sector and innovations;
- acquisition of new equipment and real estate for expanding existing productions.
Financial and credit organizations verify the accuracy of the information provided by borrowers.
Chapter 3. Requirements for Small and Medium-Sized Enterprises
Entities must be registered with the state authorities of the Kyrgyz Republic and have resident status.
The differentiation of the concepts of "individual entrepreneur," "small enterprise," and "medium enterprise" is carried out according to the Tax Code.
For the textile industry, these conditions do not apply.
Chapter 4. Restrictions and Exceptions
Financial and credit organizations are prohibited from using preferential loans for:
- personal needs;
- mortgages;
- investment activities;
- currency exchange;
- gambling business;
- projects without economic activity.
Chapter 5. Description of Project Implementation
Financial and credit organizations wishing to participate in the project must submit an application to the Ministry of Finance within 10 days from the date of entry into force of the order.
To inform the public about the project, organizations must publish the lending conditions in the media and on their websites.
To receive subsidies, financial and credit organizations must submit applications to the Ministry of Finance at the end of the year.
The Ministry calculates the subsidies and prepares their transfer in accordance with the project.
Tranches of subsidies are transferred to the organizations' settlement accounts based on applications.
Oversight of the organizations' activities is carried out by the National Bank.
Organizations must provide monthly information about the loans issued to the Ministry of Economy and Commerce.
Chapter 6. Calculation of Subsidies
The Cabinet of Ministers establishes calculation coefficients for subsidies to cover expenses when providing subsidies.
1) the weighted average nominal rate is 17.99%, the final rate is 6%, the subsidy rate is 11.99%;
2) for loans for 60 months, the calculation coefficient is 33.47;
3) for loans for 48 months - 27.48;
4) for loans for 36 months - 21.48;
5) for loans for 18 months - 12.49.
Coefficients may change depending on the budget.
The annual subsidy amount is calculated by the Ministry of Finance. The subsidy rate remains unchanged at 11.99%.
Chapter 7. Transfer of Subsidies
Subsidies are transferred to financial and credit organizations in five tranches:
1) the first tranche - in 2026;
2) the second - 365 days after the first;
3) the third - 365 days after the second;
4) the fourth - 365 days after the third;
5) the fifth - 365 days after the fourth.
Organizations are required to provide information on early loan repayments.
Chapter 8. Risks and Threats
During the implementation of the project, risks of misuse of funds may arise.
Financial and credit organizations minimize these risks in the established manner.
In case of detection of facts of misuse of funds, organizations may apply liability measures.
The Ministry of Economy and Commerce and the National Bank conduct checks on the targeted use of funds.
Chapter 9. Monitoring of Targeted Use of Loan Funds
Monitoring will be carried out by financial and credit organizations as follows:
1) borrowers submit reports on the targeted use of funds;
2) authorized employees conduct checks with the preparation of reports;
3) loan applications must be accounted for in the electronic queue system.
Borrowers are required to provide the necessary documents to confirm the targeted use of the loan.
Chapter 10. Evaluation of Project Effectiveness
Financial and credit organizations provide information on the results of project implementation to the Ministry of Economy and Commerce based on key indicators.
1) number of jobs created;
2) number of new productions;
3) volume of production and sales;
4) total export volume;
5) amount of financial resources used for equipment.
