Loans were restructured by the microcredit company for the clients residing in Chon-Alai region of Osh oblast.

The decision was made since the population of Chon-Alai region was in a difficult situation. Due to severe and prolonged winter the pasturing season in 2012 started one month later. As a result, the reserves of the feed for cattle were used by farmers ahead of time, which lead to the exhaustion of animals and their mass loss.

Cattle breeding is the main source of income for Chon-Alai population, that is why loans here are mainly disbursed for cattle breeding. Having faced the unforeseen challenges, borrowers found it difficult to repay loans, –says FINCA Kyrgyzstan CEO Mahmud Saidakhmatov. – Our company has made concessions to its clients and we started working on the restructuring of the loans of the affected Chon-Alai borrowers.

Under the restructuring, the clients of FINCA Chon-Alai office were given grace periods to repay loan principals. Therewith, the affected borrowers are to pay just 1% per month on their loans until November 2012. Besides that, the company has written off all the penalties and interest accrued.

According to the information provided by the manager of FINCA Alai branch Tolkunbek Ramanov, the grace period was established in accordance with the period necessary for the economic condition of Chon-Alai region to recover. During 6 months livestock breeders will be able to breed their cattle on summer pastures for further sale. The preferential conditions applicable to loan servicing will enable farmers to strengthen their households while difficult times persist, and following the rehabilitation to get back to the regular market relations with their lender.

Earlier, in April this year, FINCA also assisted Chon-Alai farmers who were affected by the prolonged winter by supplying them with pressed hay for cattle feed.