IFAD supports financial innovations for Agriculture in the Kyrgyz Republic
On April 14 2021, IFAD-funded project Access to Market Project (ATMP) awarded grants to two financial institutions to support the introduction of innovative products that will help catalyze agricultural development in Kyrgyzstan.
The ATMP is therefore providing grant resource to the Union of Banks of Kyrgyzstan to develop its “Warehouse Receipt Funding” product. The latter involves the development of a tool that will allow producers, traders, processors and exporters of agricultural products to obtain loans secured by warehouse stocks. When accepting goods for storage, the warehouse operator will issue a certificate that can be used as collateral when obtaining a loan. This new product is expected by mid-March 2022.
Aiyl Bank is also to receive funding for the development of its "Online Trade and Logistics Platform for Value Chain Entities". This product aims at the development of the largest agricultural fair trade platform on the local market. The platform, which should be online by mid-October 2021, will connect farmers to industrial and commercial enterprises throughout the Republic, to the Eurasian Economic Union (EAEU) space, and to other countries with close trade relations with the Kyrgyz Republic.