On the 10-th of February a meeting of a new IBC committee – microfinance committee – was held in FINCA company. The former president of the Kyrgyz Republic Mrs. Roza Otunbaeva, the deputies of Jogorku Kenesh and the representatives of the Association of Microfinance Institutions of Kyrgyzstan attended the committee.

“Nowadays there are many gossips in the society, sometimes negative, regarding the activities of the microfinance industry in the republic, –FINCA CEO Makhmud Saidakhmatov explained the necessity of establishing a new committee. – We are blamed that the industry doesn’t fulfill its mission and, according to some of the critics, we “push population into debt pit”. That is why we have united into the committee under the IBC, in order to communicate to society and the country’s leaders, the role of microfinance industry, the existing problems and to find the ways to resolve the problems together”.

The republic’s leading microfinance companies– FINCA, “Bai-Tushum and Partners”, “Kompanion”, “Mol Bulak Finance” – made presentations to meeting participants describing their activities, and shared their problems as well.
Microfinance sector which appeared in Kyrgyzstan in 1995, nowadays is a leader in the Central Asia region. For the last 15 years this sector has demonstrated stable, dynamic development, but today the legislative base that governs its activities, doesn’t correspond to the call of the times.
“It is very pleasure that Mrs. Roza Isakovna took part in the development of our industry, which plays an important role in the economy of our country, under her patronage, – said the deputy General Manager of “Bai-Tushum and Partners” microfinance company Nurgul Torobaeva. – Today the legislative base requires changes, and if they are not introduced, the industry has no prospects for development. That is why it is very important also that the deputies participate in our meeting”.
As it was emphasized by the companies’ managers, “it is especially important that we have demonstrated the social constituent of financing”. The companies hope that now, after the cooperation with the JK deputies and business community has been established, they will be able to solve today’s most important problem– to make amendments to the Law on microfinance, which has come into effect back in 2003 and is extremely outdated today.
For information
In 2011 the loan portfolio of microfinance sector of Kyrgyzstan exceeded 13.78 bn KGS, portfolio growth for the year then ended constituted 49.9%, the number of clients – 438 497 (growth of 26.3%). The highest demand of the population was in agro loans, loans for trade and consumer loans. More than 80% of borrowers reside in rural areas.