TCA - English Language Newspaper in Central Asia AFGHANISTAN KAZAKHSTAN KYRGYZSTAN TAJIKISTAN TURKMENISTAN UZBEKISTAN CENTRAL ASIA news Catalog Statistic Search Subscribe F.A.Q Country Guide > Free News: Contact us | Advertise | Site map | About TCA News start page Accident Analysis Company News Economy Environment Finance Forums Investment Legislation Media Military Oil & gas Politics Society Tourism War on Terror News Archive<< Oct. 2004 >> MTWTFSS 27282930123 45678910 11121314151617 18192021222324 25262728293031 Place your text ad hereFree News Uzbekistan hopes to be key gas exporter To remove barriers to mass media progress "No going back" for Osh region State participation in the project - additional guarantee for an investor Kazakhstan holds 12th oil and gas conference KIOGE-2004 Dismissed British Envoy To Uzbekistan Plans Lawsuit Kyrgyz Commission Finds Shortcomings In Kulov Trial Regional workshops discusses environmental issues in Central Asia Credit unions progressing in Kyrgyzstan Topic:Economy Country: Kyrgyzstan Date:22-10-2004 07:00 Source:TCA Print Send Save as DOC BISHKEK (TCA). Two years ago small business people could not even dream of getting a bank credit of less than US ,000. Today some commercial banks in Kyrgyzstan grant credits of US -0 without collateral. The situation has changed due to the increasing popularity of micro crediting through credit unions. In the first half of 2004 micro crediting in Kyrgyzstan amounted to 2.3 billion soms, being a serious rival to the banking sector. This is a very good indicator, thinks President Askar Akayev. Way to help the unemployed According to the center for socio-economic studies CASE-Kyrgyzstan and consulting agency Expert, last year participants in credit unions in Kyrgyzstan, according to a poll, improved their financial situation thanks to "the increased business activity resulted from the access to credits." Today people all over Kyrgyzstan, even in remote regions with no banking services, know about credit unions. Micro crediting through credit unions is best developed in southern Kyrgyzstan, especially in Osh province. In Issyk-Kul province, credit unions are also effective, with 16% of the country's entire micro crediting volume, according to the National Bank. Take, for instance, the credit union Nurkench-98, organized by Elmira Alapayeva. Elmira and I were introduced to each other two years ago by Kyrgyz MP Marat Sultanov, who paid great attention to micro crediting in villages. Sultanov and I were then visiting some participants in Nurkench-98. A food industry engineer by profession, Elmira had no idea about banking and crediting. After perestroika, when almost all industrial enterprises in Issyk-Kul province stood idle, she worked for several years at the employment center in Cholpon-Ata. "There I saw many unemployed - smart, healthy, and educated people who did not find their place in a market economy," Elmira said. "So when I got booklets about micro crediting and credit unions I understood that was a way to help the unemployed." The former engineer started convincing visitors to go to the employment center, and her friends and relatives to unite in a credit union. Elmira gathered 11 people, and each of them contributed 3,000 soms to the credit union. That was a large amount of money for unemployed people at Issyk-Kul. During six months of work, the members of Nurkench-98 increased the charter capital of the credit union to 60,000 soms and received the first credit from the Financial Company to Support and Develop Credit Unions. "We pursue quality" The members of Nurkench-98 were achieving prosperity step by step. They not only helped each other by lending money but also strictly monitored its spending. Credits were granted for business only. Most members of the credit union worked in agriculture, but some tried to work in the tourist business. Guljan Osmonkanova, a woman of pre-retirement age, joined the credit union and through credit money set a yurt on the side of the road to Lake Issyk-Kul resorts. During summer season she caters tourists going to the lake. With time Guljan involved her sister and son in the credit union. In 2002 Nurkench-98 united 134 members, its charter capital exceeded 670,000 soms, and its working capital was over 1.4 million soms. Recently I called Elmira Alapayeva to ask how things are going on at her credit union. "Now many people want to join our credit union," Elmira said. "In the past I had to persuade people to join us; today we select new members from many candidates. Our members do not want to give credits to unreliable people. So we only admit people who wish to start or extend business and are ready to channel part of premiums into our reserve fund intended for the union's extension. "Now we pursue quality, not quantity. Today our credit union has 121 members. Our charter capital with the reserve fund has exceeded a million soms, and our working capital is more than 1.6 million soms. 99.7% of our credits are returned. We grant credits at an annual interest of 28%. Of course, the interest rate is rather high, but the Financial Company gives credits at 20% per annum." Q: Have any of your members changed the sphere of business? A: Yes. Previously most of us worked in agriculture; now 40% works in tourism. We all have land areas, and we sell vegetables and fruits that we grow, as well as cattle-breeding products (meat, milk, and sour cream), to local resorts and spas. Seven members of our credit union, including myself, established a cooperative and purchased a vegetable storehouse capable of storing 800 tons of vegetables and fruits. Last year many farmers who grew potatoes went bankrupt due to overproduction, low prices, and the absence of storehouses. We do not want this happen again. Q: What about Guljan Osmonkanova and her son? A: She's all right. She continues catering to tourists at her yurts with traditional Kyrgyz food. Her son, Kubanychbek, has become a large businessman - he delivers large batches of fruits to Russia. They are members of the credit union and are not yet going to quit. Support from the ADB Credit unions appeared and developed in Kyrgyzstan largely thanks to support from the Asian Development Bank. The ADB thinks that sustainable economic growth and social development are two major components in reducing poverty. According to ADB experts, people can be poor for various reasons: because they live in remote regions or regions with poor resources, because of age, health, dwelling conditions, belonging to an ethnic minority, etc. Poverty could also be caused by the rule of privileged groups and long established power structures. And, finally, poverty can exist due to the absence of political will, bad governance, incorrect state policies, and ineffective programs. During its cooperation with the ADB, Kyrgyzstan has received 22 loans worth US 6 million and 52 technical assistance grants totaling US .5 million. This money has been channeled to agriculture, financial sector, regional cooperation, and social sphere. According to the National Bank of Kyrgyzstan, as of 1 July 2004, Kyrgyzstan had 305 credit unions with an overall capital of 220 million soms. These credit unions united more than 27,000 members. Their overall credit portfolio amounted to 410.2 million soms. The average interest rate on credits was 29.4% per annum. In the near future Kyrgyzstan's credit unions might add mortgage lending and leasing to their existing services. 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From 22-10-2004: Economy in Kyrgyzstan (1065) 1 2 3 4 5 6 7 8 9 10 ...Next 15 Feeds 21/10/2004 KG South-Alai: Picking works of the 35 hectares of experimental high mountainous cotton completed BISHKEK. According to director of local Department of Agriculture Manas Kasymov, 25-26 centners of cotton was gathered p... 21/10/2004 KG Kyrgyzstan's GDP expands 7% in Jan-Sept Kyrgyzstan's GDP expands 7% in Jan-Sept BISHKEK. The preliminary numbers indicate that Kyrgyzstan's GDP expanded 7%... 21/10/2004 KG Russia does not intend writing Kyrgyz debt off Russia does not intend writing Kyrgyz debt off BISHKEK. Prime Minister Nikolai Tanayev asked Russian Foreign Minister... 21/10/2004 KG Free Credit unions progressing in Kyrgyzstan Credit unions progressing in Kyrgyzstan By Larisa Lee, TCA contributor BISHKEK . Two years ago small business ... 20/10/2004 KG In the Kyrgyz Television market, there is an increasing tendency of the total advertisement budget BISHKEK. 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The first official visit of the Russian Minister of Foreign Affairs to Kyrgyzstan is an evidence of high level ... 15/10/2004 KG Kyrgyzstan mines 3% more coal in Jan-Aug Kyrgyzstan mines 3% more coal in Jan-Aug BISHKEK. Kyrgyzstan produced 205,600 tons of coal in the first eight months ... 15/10/2004 KG Kyrgyz PM pleased with privatization results Kyrgyz PM pleased with privatization results BISHKEK. Kyrgyz Prime Minister Nikolai Tanayev is placed with the course... 14/10/2004 KG The delegation of PRC Kyzyl-Suu Kyrgyz Autonomous region arrived in Bishkek BISHKEK. The delegation arrived on 12th October by invitation of OJSC “Elektricheskie Stantsii” and discussed collaborat... 14/10/2004 KG “Development ways of boundary districts of Kyrgyzstan and Uzbekistan” were discussed in Andijan BISHKEK. The entrepreneurs of both the countries – local governments, non-governmental organizations, Switzerland Develo... 14/10/2004 KG Kyrgyz inflation 0.2% in Jan-Sept BISHKEK. Inflation in Kyrgyzstan in January- September amounted to 0.2%, National Bank of Kyrgyzstan CEO Ulan Sarbanov s... 13/10/2004 KG United States probably to write off Kyrgyzstan’s debt burden BISHKEK. The U.S. may write off Kyrgyzstan’s foreign debt if the republic honors its commitments to the Paris Club, U.S.... Feeds 1 2 3 4 5 6 7 8 9 10 ... Next 15 My TCA E-mail: Password: Forgot password | Register new user TCA Poll 29 Oct. 2004 In Kyrgyzstan a presedential decree has been signed to stain the hand of voters to avoid double voting. Will this measure prevent fraudelent voting? Yes No See results Latest News First turbines made in Kyrgyzstan First turbines made in Kyrgyzstan By Darya Malevanaya, TCA correspondent BISHKEK (TCA). Three new... Kyrgyz President visits Greece Kyrgyz President visits Greece BISHKEK . On November 1, Kyrgyz President Askar Akayev arrived in Greece fo... 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Weather Kabul+250 C (mostly sunny) Almaty+190 C (haze) Bishkek+220 C (cloudy) Dushambe250 C (sunny) Ashgabad+290 C (sunny) Tashkent+240 C (cloudy) Currency rate 1 USD equal to: Afganistan (AFA)43.8295 Kazahstan (KZT)135.307 Kyrgyzstan (KGS)42.2179 Tajikistan (TJS)2.78500 Turkmenistan (TMM)5200.00 Uzbekistan (UZS)1026.87 Contact us | Subscribe | Search | Advertise | Site map | About TCA © 2004 "The Times of Central Asia", All right reserved. Terms of use. Advertise with us. 155 Chui prospect (ZUM building), 7th floor, office 701,702 Bishkek, Kyrgyzstan, 720000 Editorial: gf@elcat.kg edittimes@infotel.kg, +996 (312) 680567, 681150, 681229, 681304, fax: 996 (312) 680769 Support: support@times.kg, tel.: +996 (312) 68 08 86