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Thursday, November 14, 2019

EBD agriculture agreement begins

The Eurasian Development Bank's (EDB) loan agreement that finances the production of Kyrgyzstan's agricultural supplies took place on Nov. 15, the EBD announced on Monday.

The loan is financed by the EurAsEC Anti-crisis fund. It will lend $20 million to the Kyrgyzstan Ministry of Finance to purchase agricultural equipment and vehicles with the possibility of a 20-year extension given certain beneficial conditions are met. A bulk of the purchase will be in the form of tractors and combine harvesters. About $2 million will be set aside to improve infrastructure to maintain the equipment.

The country will allocate the loan to specific farmers through Aiyl Bank. They will provide sub-loans that are smaller and easier to repay within a timely manner. With this in mind farmers will lease equipment for $120 million over a period of 20 years.

Interest paid by the farmers will go into a fund that will later support the future leasing of equipment and other loans.

Organizations in this Story

Eurasian Development Bank

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