Committee Approves Loan from Islamic Development Bank for Agricultural Equipment
The Ministry of Water Resources, Agriculture, and Processing Industry of Kyrgyzstan is set to receive a significant financial boost thanks to a $45 million loan and a $110,000 grant from the Islamic Development Bank. The funds, provided for a 25-year term, aim to support the agricultural sector in the country.
Out of the total amount, $26 million will be offered at an interest rate of 1.5 percent, with the remaining $19 million subject to an additional Euribor base rate. The repayment grace period is set at seven years, providing some relief for borrowers.
The funds will be channeled through Eldik Bank and Aiyl Bank, offering preferential leasing options to agricultural producers and processors. This initiative will enable entrepreneurs to access the necessary funds to purchase agricultural machinery and equipment. State banks will offer these resources at an annual interest rate of 7 percent for a period of seven years, with a 10 percent down payment required.
The approval of the loan by the Committee on Budget, Economic, and Fiscal Policy of the Parliament signifies a step forward in supporting the agricultural sector and promoting economic growth in Kyrgyzstan. With this financial injection, the Ministry aims to boost productivity and modernize agricultural practices in the country, ultimately benefiting both producers and consumers.
