During the meeting with residents, the head of state drew attention to farmers' complaints about high interest rates on loans. Sadyr Japarov therefore instructed the relevant agencies to establish the reasons for problems with agricultural producers' access to state concessional lending programs.

StoriesПрезидент приказал проверить доступ фермеров к льготным кредитамSlides: 9
  1. Президент приказал проверить доступ фермеров к льготным кредитам
  2. President Sadyr Japarov ordered a review of concessional loan access for farmers. The issue was raised after a meeting with residents in Aitmatov and Manas districts.
  3. Farmers complained about high interest rates on loans. The President instructed agencies to investigate why agricultural producers struggle to access state concessional lending programs.
  4. 20–22 % — Annual interest rate farmers are currently forced to take
  5. 4 % — Stated low rate for loans
  6. 6 % — Stated low rate for loans
  7. «Agricultural producers need a longer grace period to repay debt, which could begin only after income from the harvest is received.» — Razzak Kydyraliev
  8. The President demanded answers from banks and agencies regarding the high interest rates. He stressed that such rates are inappropriate for seasonal agriculture.
  9. President of Kyrgyzstan Sadyr Japarov has ordered a review of whether farmers actually receive concessional loans at reduced rates, a topic raised at a meeting between the head of state and residents of Aitmatov and Manas districts.

Problems obtaining loans and high rates

One farmer, Razzak Kydyraliev, said that despite many years of cooperation with the bank, he has been unable to obtain a loan at the stated low rates (4, 6 or 10 percent). According to him, he is currently forced to take loans at 20–22 percent per annum.

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20–22percent per annum
4percent
6percent
10percent

As a proposal, Kydyraliev said agricultural producers need a longer grace period to repay debt, which could begin only after income from the harvest is received. He compared the situation with practice in Kazakhstan, where farmers can count on a three-year holiday.

President's demands on financial institutions

President Sadyr Japarov asked representatives of banks and relevant agencies why a farmer is forced to take a loan at 20–22 percent when the state has set lower rates for the agricultural sector. The head of state stressed that such interest rates are inappropriate for seasonally operating agriculture.

As a result, the President instructed the Ministry of Agriculture, the Ministry of Economy and banks to conduct a review to establish whether funds allocated for concessional lending reach farmers directly.