GUARANTEE FUND AS ONE OF THE TOOLS FOR THE DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISES

Year 2013, Volume: 2 Issue: 58, 54 - 58, 01.05.2013

M Abakirov

Abstract

One of the primary problems of small and medium businesses in the Kyrgyz Republic is the hindered access to financial resources due to insufficient collateral. When issuing a loan, banks normally demand a liquid collateral amounting to at least 120% of the loan amount. Many entrepreneurs don’t have sufficient collateral. Solving this problem will enable the creation of credit guarantee funds to support small and medium enterprise. This article describes the activities of guarantee funds in the country. The project was implemented within the framework of USAID project

Keywords

Guarantee Fund, Small and Medium Businesses, Collateral, Guarantee, Credit, GDP, Revenue, Jobs, USAID, Individual Entrepreneur, Banks.