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Shumkarbek - Financing and investments in agriculture (en)

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Shumkarbek - Financing and investments in agriculture (en)

  1. 1. Investments Promotion Agency
  2. 2. 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
  3. 3. Sectors with export capacity Current situation The total sown area of ​​agricultural crops: 1,18million hectares of arable land 9,3million 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
  4. 4. 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 (thousan d ton) Beef and veal 96,9 Pork 15,1 Mutton and goat meet 51,8 Horse meat 22,2 Poultry 6,8
  5. 5. 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
  6. 6. Contract-based financing Contract-based financing Loan «Sweet Harvest»
  7. 7. 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»
  8. 8. 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
  9. 9. 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
  10. 10. On-going projects Processing 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.
  11. 11. On-going projects Construction 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.
  12. 12. 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
  13. 13. Thank you for your attention!

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