The Ministry of Finance is instructed to allocate **99 million 876 thousand 695.44 soms** from the republican budget to financial and credit organizations participating in the project, in coordination with the relevant committee of the Jogorku Kenesh.
These funds will be directed towards additional interest rate subsidization for preferential loans for entrepreneurs, which will add to the already allocated **300 million soms**.
Consequently, the total funding for the project in 2026 will amount to **399 million 876 thousand 695.44 soms**.
The Ministry of Finance must also provide for project funding in subsequent years and take changes into account when preparing amendments to the law on the republican budget for 2026, as well as for the planned period of 2027–2028.
Furthermore, changes were made to the Cabinet's order No. 1-t dated January 12, 2026, regarding the implementation procedure of the project.
In particular, the main conditions for lending through participating financial and credit organizations (including taking into account Islamic principles) are established: the final interest rate will be **6% per annum**.
The project includes four areas:
investment purposes (up to 60 months),
working capital replenishment (up to 36 months),
refinancing of previously received loans (up to 18 months),
support for novice entrepreneurs/startups (up to 18 months).
The maximum loan amounts depend on the category of the borrower and the purpose of the loan.
Special conditions for the **textile industry** have been defined: for existing enterprises, the maximum loan amount is up to 100 million soms, regardless of the borrower's category; for startups in this industry — up to 1 million soms.
In the distribution of lending, a requirement has been established: at least 60% of the amount must be directed to the regions, and no more than 40% — to the cities of **Bishkek and Osh** (exceptions are provided for the textile industry).
The priority region for project implementation is identified as **Batken Region**, and the textile industry is highlighted as one of the key areas.
The document also updates the parameters for subsidization: the subsidy rate is set at 11.99% (with a weighted average nominal rate of 17.99% and a final rate of 6%), and calculation coefficients are indicated depending on the loan term (18, 36, 48, and 60 months) with distribution of payments by year within the budget allocations.
| Target Industry | Final Interest Rate | Loan Term | Grace Period | Loan Amount | |
| 1 | Investment: purchase of new equipment, production reconstruction, acquisition, modernization of fixed assets, engineering works | 6% per annum | Up to 60 months | Up to 6 months | Individual entrepreneurs and legal entities: 1) small enterprise (annual revenue not exceeding 8 million soms) - up to 30 million soms; 2) medium enterprise (annual revenue not exceeding 50 million soms) - up to 50 million soms |
| 2 | For replenishing working capital: purchasing raw materials, goods | 6% per annum | Up to 36 months | Up to 6 months | Individual entrepreneurs and legal entities: 1) small enterprise (annual revenue not exceeding 8 million soms) - up to 10 million soms; 2) medium enterprise (annual revenue not exceeding 50 million soms) - up to 20 million soms |
| 3 | For refinancing previously received loans | 6% per annum | Up to 18 months | Up to 6 months | Individual entrepreneurs and legal entities: 1) small enterprise (annual revenue not exceeding 8 million soms) - up to 7 million soms; 2) medium enterprise (annual revenue not exceeding 50 million soms) - up to 10 million soms |
| 4 | For business development of novice entrepreneurs, startups | 6% per annum | Up to 18 months | Up to 6 months | Individual entrepreneurs and legal entities - up to 1 million soms |
Implementation Procedure of the Project
The implementation procedure of the project "Preferential Lending for Entrepreneurship in the Kyrgyz Republic through Interest Rate Subsidization"
(In accordance with the Order of the Cabinet of Ministers of the Kyrgyz Republic dated February 13, 2026, No. 77-t)
Chapter 1. General Provisions
The goal of the project "Preferential Lending for Entrepreneurship in the Kyrgyz Republic through Interest Rate Subsidization" is to reduce the cost of borrowed funds for small and medium-sized business entities, ensure access to financing, stimulate economic growth, and develop the regions of the Kyrgyz Republic through affordable preferential loans.
The project implementation period is 60 months.
Project financing is carried out from the republican budget of the Kyrgyz Republic for the relevant years, as well as from the funds of open joint-stock companies "Aiyl Bank", "Eldik Bank", the microcredit company "Fund for Entrepreneurship Development", and other financial and credit organizations willing to participate in the project.
Financial parameters of the project:
- the total amount of the project is 3,699,136,868.06 soms;
- the amount of subsidies for 2026 is 399,876,695.44 soms.
The project implementation begins in January 2026. Credit funds from financial and credit organizations participating in the project will be provided throughout 2026.
Responsible executors: The Ministry of Finance of the Kyrgyz Republic, the Ministry of Economy and Commerce of the Kyrgyz Republic, as well as the financial and credit organizations participating in the project.
Within the framework of the project in 2026, financial and credit organizations will provide credit funds to small and medium-sized enterprises at preferential interest rates, including the use of Islamic banking principles in accordance with the legislation of the Kyrgyz Republic.
Interest rate subsidization for loans issued by financial and credit organizations is carried out by the Cabinet of Ministers of the Kyrgyz Republic at the expense of the republican budget for the relevant years, including operations performed in accordance with Islamic principles.
Loan provision and financing are carried out in accordance with the banking legislation of the Kyrgyz Republic.
All risks associated with the repayment of issued loans are borne by financial and credit organizations, and borrower selection is conducted according to internal procedures.
Financial and credit organizations may carry out lending within the framework of the project under the guarantees of the open joint-stock company "Guarantee Fund" in the manner established by law.
Financial and credit organizations are required to strictly adhere to the conditions and requirements of the project.
Project participants must ensure lending to borrowers under the following general conditions:
| No | Target Industry | Final Interest Rate | Loan Term | Grace Period | Loan Amount |
| 1 | Investment: purchase of new equipment, production reconstruction, acquisition, modernization of fixed assets, engineering works | 6% per annum | Up to 60 months | Up to 6 months | Individual entrepreneurs and legal entities: 1) small enterprise (annual revenue not exceeding 8.0 million soms) - up to 30.0 million soms; 2) medium enterprise (annual revenue not exceeding 50.0 million soms) - up to 50.0 million soms |
| 2 | For replenishing working capital: purchasing raw materials, goods | 6% per annum | Up to 36 months | Up to 6 months | Individual entrepreneurs and legal entities: 1) small enterprise (annual revenue not exceeding 8.0 million soms) - up to 10.0 million soms; 2) medium enterprise (annual revenue not exceeding 50.0 million soms) - up to 20.0 million soms |
| 3 | For refinancing previously received loans | 6% per annum | Up to 18 months | Up to 6 months | Individual entrepreneurs and legal entities: 1) small enterprise (annual revenue not exceeding 8.0 million soms) - up to 7.0 million soms; 2) medium enterprise (annual revenue not exceeding 50.0 million soms) - up to 10.0 million soms |
| 4 | For business development of novice entrepreneurs, startups | 6% per annum | Up to 18 months | Up to 6 months | Individual entrepreneurs and legal entities - up to 1.0 million soms |
For the textile industry, the maximum loan amount for existing enterprises is up to 100.0 million soms, regardless of the borrower's category. For startups in this industry, the maximum loan amount is up to 1.0 million soms for a term of up to 18 months under the conditions established in line 4 of the table in paragraph 13.
Financial and credit organizations may establish a longer grace period at their own expense.
(This clause has been rendered invalid according to the Order of the Cabinet of Ministers of the Kyrgyz Republic dated February 13, 2026, No. 77-t)
In case of misuse of loan funds, financial and credit organizations may apply liability in accordance with the loan agreement and internal procedures, including the requirement for early repayment of debt and imposition of penalties, unless otherwise stipulated in the agreement.
If the collateral is insufficient, borrowers may apply to the open joint-stock company "Guarantee Fund" for a guarantee.
Startups may be granted loans of up to 1,000,000 soms for a term of up to 18 months through a simplified procedure based on a business plan, provided they meet the requirements of the financial and credit organization.
Lending must be carried out with at least 60% in the regions and no more than 40% in the cities of Bishkek and Osh, with the exception of the textile industry.
The priority region for project implementation is Batken Region.
At least 30% of loan recipients must be women entrepreneurs or enterprises with more than 50% female participation, including in the textile and garment industries.
Refinancing of existing debt is permitted in the manner established in subparagraph 3 of the table in paragraph 13, with the total volume of refinancing not exceeding 30% of the total lending of this organization within the project.
Participation in the project is allowed for small and medium-sized enterprises with a loan delinquency of no more than 60 days over the past 36 months.
Financial and credit organizations must consider applications from entities in the textile and garment industry as a priority when distributing lending limits.
The textile industry is a priority direction of the project.
Chapter 2. Priority Directions
Credit funds are allocated for the following priority directions, excluding economic entities with debts from previously received preferential lending under state programs in the agricultural sector:
- production and processing of food products, excluding tobacco;
- textile and garment production, production of footwear and leather goods;
- production and processing of wooden and paper products, printing activities;
- production of chemical products;
- pharmaceutical production;
- production of rubber products and non-metallic mineral products;
- production of finished metal products;
- production of computers and electrical equipment;
- production of construction materials;
- other types of production, as well as repair and installation of machinery;
- tourism and related services (guest houses, eco-tourism, etc.);
- professional, scientific, and technical activities;
- education, including preschool institutions;
- handicrafts;
- startups;
- healthcare and social services;
- export-oriented enterprises;
- IT sector and innovations;
- acquisition of new technological lines and equipment;
- acquisition of real estate for expanding existing production.
Financial and credit organizations carry out verification of the accuracy of the information provided by borrowers in accordance with banking legislation and their internal procedures.
Chapter 3. Requirements for Small and Medium-Sized Enterprises
Small and medium-sized business entities must be registered with the state authorities of the Kyrgyz Republic and have resident status.
The distinction between the terms "individual entrepreneur," "small," and "medium enterprise" is made in accordance with the Tax Code of the Kyrgyz Republic.
For entities in the textile industry, these requirements do not apply.
Chapter 4. Restrictions and Exceptions
Financial and credit organizations are prohibited from providing preferential loan funds for:
- consumer needs;
- mortgages;
- credit, insurance, and investment services;
- currency exchange operations;
- gambling activities;
- operations with virtual assets;
- purchase of land plots;
- refinancing of debts (except in cases specified in the project);
- activities prohibited by law;
- trade in alcohol and tobacco;
- sale of prohibited substances;
- projects without real economic activity.
Chapter 5. Description of Project Implementation
Financial and credit organizations wishing to participate in the project must submit an application to the Ministry of Finance within 10 days after the order comes into effect, indicating the subsidy rate and the volume of lending.
To inform the public about the project, financial and credit organizations are required to publish the lending conditions in the media and on their websites.
To receive subsidies, organizations submit an application to the Ministry of Finance based on the results of 11 months of the reporting year.
The Ministry of Finance calculates and transfers the subsidy amount in accordance with the established coefficients.
Tranches of subsidies are transferred to the accounts of financial and credit organizations based on applications.
Oversight of activities is carried out by the National Bank of the Kyrgyz Republic.
Financial and credit organizations must provide information on issued loans to the Ministry of Economy and Commerce monthly.
Chapter 6. Calculation of Subsidies
The Cabinet of Ministers of the Kyrgyz Republic establishes calculation coefficients to cover the costs of financial and credit organizations when providing subsidies.
1) The weighted average nominal rate is 17.99%, the final rate is 6%, with subsidization at the level of 11.99%.
2) For loans for 60 months, the subsidy coefficient is 33.47.
3) For loans for 48 months, the coefficient is 27.48.
4) For loans for 36 months, the coefficient is 21.48.
5) For loans for 18 months, the coefficient is 12.49.
The application of these coefficients is carried out within the budget.
The annual amount of subsidies is calculated by the Ministry of Finance. The coefficient may vary depending on the loan term, but the rate remains fixed at 11.99%.
Chapter 7. Transfer of Subsidies
Subsidies are transferred to financial and credit organizations by the Ministry of Finance in five tranches:
1) the first tranche — in 2026;
2) the second tranche — 365 days after the first;
3) the third tranche — 365 days after the second;
4) the fourth tranche — 365 days after the third;
5) the fifth tranche — 365 days after the fourth.
Financial and credit organizations are required to provide information on early repayments of loans.
Chapter 8. Risks and Threats
The implementation of the project may face risks of misuse of funds.
Financial and credit organizations must minimize these risks.
In case of misuse of loans, an act must be drawn up, and liability measures must be applied.
The Ministry of Economy and Commerce, together with the National Bank, will check the targeted use of loans.
Chapter 9. Monitoring the Targeted Use of Loan Funds
Monitoring will be carried out as follows:
1) Borrowers must submit reports on the targeted use of loan funds.
2) Authorized employees will conduct monitoring on-site.
3) Applications for loan funds must be included in the electronic queue system.
Borrowers are required to provide necessary documents to confirm the targeted use of the loan.
Chapter 10. Evaluation of Project Effectiveness
Financial and credit organizations must provide aggregated information on the targeted use of loans to the Ministry of Economy and Commerce.
1) Number of jobs created;
2) Number of new productions;
3) Volume of production;
4) Revived enterprises;
5) Volume of sales and exports;
6) Amount of funds for equipment.
