Horticulture and forestry funding

Target industry segment:

Small and medium-sized enterprises involved in agriculture

Requirements for Partner Banks:

Requirements in the framework of "Lending to SMEs through commercial banks" program

Purpose of loan:

Setting up the intensive orchards with horticultural crops [1] and planting forest trees [2]

Currency:

Kyrgyz som, US dollar

Amount:

Up to 1 million US dollars or an equivalent in KGS. 

Terms:

Up to 7 years.

 

It is possible to have a deferral for a loan principal repayment up to 24 months.

Interest rate of a Commercial Bank for the Borrower:

No more than 9% per annum in KGS, including all fees of the Partner Bank 

No more than 5% per annum in US dollars, including all fees of the Partner Bank 

Additional commissions and charges:

Collateral insurance

Repayment:

Individual, seasonal repayment schedule in accordance with the Commercial Bank requirements and the Borrower financial condition

Collateral security for a Partner Bank

According to the Commercial Bank requirements

In case of insufficiency of the collateral, it is possible to provide guarantees of the Guarantee Fund OJSC.

Requirements for SMEs

  • Relevant financial indicators as required by the Partner Bank;
  • Ownership or long-term lease (for a period not less than the loan term) of a land plot for planting a garden and forest trees with the appropriate permits;
  • Planting of popular breeds (it is possible to provide preliminary contracts with logistics centers for the supply of a certain breeds of horticulture crops), as well as forest trees;
  • Availability of a certificate from the seedling supplier:
  • About analysis of the soil of the land where the garden is planned;
  • About completing training in intensive gardening and tree planting;
  • Garden planting plan and garden planting cost calculations with appropriate recommendations.
  • A contract with a supplier on the supply of seedlings, indicating the mandatory conditions:
  • The amount of supplied planting material, the amount of the contract;
  • Supplied varieties of fruit and tree crops;
  • Terms of delivery (delivery period);
  • Terms of payment;
  • Guarantee from the supplier and terms of service (i.e. guarantee of seedlings survival rate of at least 80%, advice on growing a garden within 3 years from the date of planting, etc.).

Requirements for fruit-growing farms

  • Experience of at least 5 years in the preparation of seedlings;
  • An operating garden or nursery farm of at least 5 hectares;
  • Availability of qualified personnel trained for the preparation of seedlings and consultations;
  • Availability of certificates and supporting documents for the varieties of fruit crops sold (registration of the variety at the State Center for Testing Varieties and Plant Genetic Resources)[3];
  • Availability of quality certificate[4], variety identification certificate[5], phytosanitary certificate[6];
  • Availability of zoned varieties, i.e. fruit crops adapted to the natural and climatic conditions of the Kyrgyz Republic.

Requirements for companies supplying seedlings

  • Experience in supplying seedlings for at least 3 years;
  • Signed contract with the nursery farms for the supply of seedlings that meet the above requirements;
  • Availability of qualified personnel trained for the preparation of seedlings and consultations;
  • Availability of certificates and supporting documents for the varieties of fruit crops sold (registration of the variety at the State Center for Testing Varieties and Plant Genetic Resources);
  • Availability of quality certificate, variety identification certificate, phytosanitary certificate;
  • Availability of zoned varieties, i.e. fruit crops adapted to the natural and climatic conditions of the Kyrgyz Republic.

 

[1] Planting fruit crops that begin to bear fruit early, while bearing a large number of high quality fruits.

[2] Planting a tree culture with a shorter period in order to increase the yield of wood per unit area.

[3] Requirements for planting fruit crops.

[4] A quality certificate is a document issued according to the rules of the certification system of seeds and seedlings of fruit and berry plants and grapes, certifying their planting qualities and confirming their compliance with the requirements of state and industry standards.

[5] Variety identification certificate is a document issued after the approbation of varietal plantings and certifying the varietal purity of plants. Only varieties included in the State Center for Testing Variety and Plant Genetic Resources obtained legally and allowed for use are subject to certification.

[6] Every plant nursery, once a year, undergoes phytosanitary licensing and receives a phytosanitary certificate for its products, issued by state organizations for plant quarantine and protection (in world practice).