RKDF plans to start providing funding to startups

Bishkek, Jan. 11, 2019. /Kabar/. The Russian-Kyrgyz Development Fund (RKDF) plans to begin providing funding to startups in 2019, Chairman of the RKDF Erkin Asrandiev told the Kabar News Agency.

He noted that the project is under development.

“In December, we received the approval of this direction from the Council of the Fund. It will take time to develop mechanisms for financing small businesses. We assume the mandatory participation of partners – perhaps, banks or investment companies, or microfinance organizations,” he said and added that it may take 2-3 months to develop mechanisms.

Asrandiev explained that the project will concern the category of entrepreneurs who have developed a good business plan, but start their business from scratch.

“Credit institutions, for example, require to show sources of income, financial history, provide collateral, etc. Novice entrepreneurs cannot meet all standard requirements. They have no possibility of coming to us, we have other scales. They don't know who to count on. Our project will be a pilot one. The amount is limited to $ 1 million,” the head of the Fund added.

As of December 1, 2018, the Fund approved 1,650 projects worth $ 303.9 million.