The deputy expressed concern that the new rate is now comparable to the conditions of commercial banks.
In response, Deputy Minister of Finance Nurbek Akzholov explained that the zero rate was in effect during the COVID-19 pandemic when small and medium-sized businesses faced significant difficulties.
“The situation in the country's economy has improved, the credit rating has increased, which has led to a reduction in the grant component. Currently, loans are provided on market, albeit preferential, terms,” noted the deputy minister.
He added that the 8% annual rate is still preferential and includes the following conditions:
- the loan term is 5 years,
- loans are issued without collateral,
- there are no experience requirements (which is specifically provided for startups).
This issue was discussed in the context of reviewing the draft law "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on Venture Financing," which was at its first reading.
