The “Value Chain Agro Finance” project provides support to farmers and processing enterprises of value chain participants in implementing new advanced technologies of production and processing of agricultural products, introduction of international standards of product quality and access to long-term agricultural investment loans in national currency.
The Project funds for lending to farmers, processors and other value chain actors are provided by the European Investment Bank and the Federal Ministry for Economic Cooperation and Development (BMZ) of the Federal Republic of Germany, which channels the funding through the German Development Bank (KfW) and total EUR 31 million.
Financial resources provided by the German Development Bank (KFW) and the European Investment Bank (EIB) will be used to grant loans in national currency Kyrgyz som (KGS) to eligible beneficiaries – MSMEs -Value Chain stakeholders via partner commercial banks mainly as investment loans with a maturity over up to 7 years for procurement of agricultural machinery, equipment and working capital.
Besides primary producers and agricultural processors, the other eligible beneficiaries are aggregators (e.g. large buyers / sellers), agriculture input and machinery providers, and service providers stakeholders of the agricultural value chains.
The detailed information on the main terms and conditions on loans from European Investment Bank (EIB) and German Development Bank (KfW) will be provided in due time.