Kyrgyzstan issues 3.5 billion soms to back farmers

/By AzerNews/

By Vusala Abbasova

The Kyrgyz Finance Ministry has allocated concessional loans in the amount of 3.5 billion soms (over $48.3 million) for farmers since early 2015 in the framework of the Financing Agriculture-3 Project.

Roughly 9,143 farmers were able to benefit from the loans issued under the project during the January-October 2015. Of the total amount some 2.794 billion soms were issue for livestock farmers, 369.440 million soms for tribal and agricultural cooperatives and 347.123 million soms for crop production.

As many as 6 banks are involved in implementation of the Financing Agriculture-3 Project.

Kyrgyzstan's agriculture production is quite competitive within the framework of its integration with the EEU. The country’s joining the EEU is expected to favorably affect the development of agriculture production, improving technologies and trade relationships.

Kyrgyzstan is a mountainous agricultural country and agriculture is a leading sector of Kyrgyzstan's economy, accounting for approximately 24 percent of the country's GDP.

Besides, about 64 percent of the country's population is living in rural areas and 14 percent of all people are working in the agriculture sphere. For comparison, this figure in developed countries amount only to 1-3 percent. Thus, Kyrgyzstan's agriculture has not only economic but also social and political importance.