Eldik Bank and ADB Launch a Project to Support Kyrgyzstan’s Agricultural Producers
OJSC Eldik Bank has begun implementing the project “Developing Climate-Resilient Value Chains in the Agriculture Sector of the Kyrgyz Republic,” financed by the Asian Development Bank (ADB). Today, the Project Agreement was signed by the Chairman of the Management Board of OJSC Eldik Bank, Ulanbek Nogaev, and the Country Director of the ADB Resident Mission in the Kyrgyz Republic, Zheng Wu.
Under the project, Eldik Bank will receive a subsidiary loan in the national currency equivalent to USD 13 million. The funds will be directed toward concessional lending to legal entities and individual entrepreneurs engaged in the country’s fruit and vegetable sector.
The loan conditions are as follows:
• up to USD 5 million (equivalent in national currency);
• loan term of up to 10 years;
• annual interest rate of 6%.
The effective interest rate is from 6.23%.
Eligible use of loan funds: investments in fixed assets aimed at developing agriculture and improving agribusiness efficiency. Key areas of financing include:
• Post-harvest storage, processing, and sale of fruit and vegetable products, including the purchase of new vehicles and equipment;
• Production and/or supply of agricultural technologies and logistics, as well as the supply of agricultural inputs and services necessary for fruit and vegetable production;
• Construction, reconstruction, and repair of buildings and facilities, if such expenses meet project eligibility criteria;
• Investments in value-added equipment.
“This project is a vivid example of how international partnership contributes to strengthening the economy of the Kyrgyz Republic. We are creating a sustainable support system for farmers and processors so that agriculture becomes a source of stable growth and export,” noted Ulanbek Nogaev.
“We welcome Eldik Bank as another financial institution joining the ADB-supported Project for the Development of Climate-Resilient Agricultural Value Chains. Eldik Bank’s extensive network and expertise will help expand access to targeted and affordable financing for small and medium horticultural enterprises, contributing to climate resilience and improving rural livelihoods,” said Zheng Wu, Director of the ADB Resident Mission in the Kyrgyz Republic.
The project “Developing Climate-Resilient Agricultural Value Chains” aims to create favorable conditions for increasing the supply of fresh and processed fruit and vegetable products to domestic and international markets.
The main goal of the initiative is to strengthen and develop production and supply chains that will not only increase volumes and improve product quality, but also introduce modern technologies in production, storage, and processing. This will help enhance the competitiveness of Kyrgyz products. The project’s implementation will be an important step in advancing state policy in agricultural development and ensuring the country’s food security.
