Financing and investments in agriculture

Investments Promotion Agency

Contents: The current state of agriculture in the Kyrgyz Republic;

The main terms of the Russian-Kyrgyz Development Fund;

Contract-based financing of agriculture;

Projects which are being implemented with the assistance of IPA (Investments

Promotion Agency)

Investments Promotion Agency

Sectors with export capacity

Current situation

The total sown area of agricultural crops: 1,18million hectares of arable land9,3million hectares of pastures

• Contribution to the economy - 14% of GDP

• 30% of the population in agriculture

• The volume of gross output - $ 197 million (2015)

• FDI in the food industry - almost 5% of the total FDI in the country

• 279,8 thousand farms (2015)

• On average, 182 centners (quintals) of fruits and vegetables are picked from/per 1 hectare

• 279,800 farms (2015)

Сбор (тыс. тонн)

Урожайность (центнер с 1 га)

Зерно 1813,0 28,1

Сахарная свекла 195,4 293,4

Хлопок-сырец 68,6 29,3

Табак 6,5 21,0

Картофель 1332,0 163,3

Овощи 881,5 186,8

Agriculture

Sectors with export capacity

Advantages• Agriculture is exempt from VAT payment• Infrastructure is being improved by building

roads in rural areas• High-quality organic products• State support and preferential loans from the

State• Availability of an excellent raw materials base

Growth capacity

• Accession to the EAEC• Elimination of customs barriers• Doubling the volume of sales of

products, and of the sale market• Significant capacity of livestock growth,

the expansion of exports of dairy products and meat

• Good climatic conditions for the cultivation of agricultural products

(thousand ton)

Beef and veal

96,9

Pork 15,1

Mutton and goat meet

51,8

Horse meat 22,2

Poultry 6,8

The main terms of crediting from the RKDF

Investments promotion agencywww.invest.gov.kg

- Absence of debts to creditors and the budget;

- Availability of own funds - not less than 15 per cent;

- The threshold amount for SMEs - US $ 1 million;

- The repayment term was set from 5 to 15 years with depending on the industry;

- The interest rate of 5% in US dollars and 12% in soms;

- The opportunity to refinance up to 30 percent of the loan amount

As of 26.09.2016, the Fund issued directly to projects on agricultural products processing in the amount of 17.476 thousand USD.

Investments promotion agency

Contract-based financing

Contract-based financing Loan «Sweet Harvest»

Contract-based financingе

The concept of "Sweet Loan", implemented in 2 commercial banks in cooperation with the processing company and the KWF as the model of contract-based funding is being promoted for other VAC (value-added chains)

Program «Sweet Loan»

Financing of Bank "Bai tushum" under the “Sweet Harvest“ Programme

• The loan amount of 10 000 soms;

• Interest rate – 28%;• Loan Term: 1 agricultural

cycle, from 3 to 12 months;• Experience of at least 1 year

in the cultivation of sugar beetroot;

• A signed contract with the plant JSC "Kaindy-Kant"

The contract with JSC "Kaindy Kant“ serves as a 50% collateral on the loan

Export of meat to Iran

Processing of calendula and

export to Europe

Construction of meat and dairy

plant.

The Projects implemented with the assistance from IPA

On-going projectsProcessing of calendula and export to Europe

Work on attracting an investor from Gonkong on growing and processing of calendula.

A land parcel has been designated in the Ak-Suu district of 200 hectares for the cultivation of calendula, and industrial premises are being sought for the purchase by the the investor and subsequent processing

Volume of investments is 3 mln. USD.

On-going projectsConstruction of meat and dairy plant in the village

of Krasnorechka, of the Issyk-Ata raion

Investor: Company "Yimpash Asia TARIM've hayvandzhylyk Co." Turkey.

Current status: a land parcel has been purchased with the area of 3 hectares in village Krasnorechka. It undergoes the procedure for obtaining permits.Volume of investments is 5 mln. USD.

Supply of meat to Iran

A Memorandum between the Kyrgyz company LLC "Janas" and the Iranian company for the supply of 500 tons of meat to Iran has been signed.In fact, 120 tons of meat have already been delivered to Iran

Thank you for your attention!