The milk processing enterprise has faced financial difficulties due to a high interest rate at a commercial bank and the consequences of a foot-and-mouth disease outbreak. Currently, the plant produces ayran and cheese, with plans to export products to Russia.
Reasons for the support request
The entrepreneur reported that he was previously unable to obtain a loan from Aiyl Bank due to overdue debt. This occurred over a three-month period when the enterprise was unable to make payments due to the spread of foot-and-mouth disease among livestock. Although the loan was later fully repaid, the bank refused to issue a new loan.
The plant currently services a loan at a commercial bank at a 29% annual interest rate, which significantly increases production costs. To implement plans for cheese exports to the Russian Federation, the company requires additional working capital for raw material procurement.
Project financial indicators
Of the 31,000,000 som requested in concessional loans, 25,000,000 som is planned to be directed toward repaying the current debt to the commercial bank.
