BISHKEK, Kyrgyzstan, May 7. The Parliament of Kyrgyzstan has approved credit and grant agreements with the Asian Development Bank (ADB) in the second reading, Trend reports.
According to the parliament, the agreements concern a credit for the Climate-Resilient Agricultural Value Chain Development Project in Kyrgyzstan.
The project's total financing is $40 million, including $20 million as concessional credit from the ADB, $20 million as a grant from the ADB, and $850,000 as co-financing from Kyrgyzstan's Cabinet of Ministers.
The loan term is 32 years, accompanied by an 8-year grace period. The grace period interest rate is 1 percent and the after-grace rate is 1.5 percent, with semi-annual installments.
The project will operate in two directions: increasing bank financing to support the development of trade and logistics centers, warehouse owners, primary processors, suppliers, aggregators, logistics companies, and other entities in the fruit and vegetable production and marketing chains; and strengthening production and marketing chains in fruit and vegetable production. The project implementation period is from March 2024 to December 2028.
On December 13, 2023, in the city of Bishkek, the ADB and Kyrgyzstan signed the project agreement.
To note, the ADB's sovereign loan portfolio in Kyrgyzstan comprised 14 loans and 19 grants, totaling $784.8 million, as of December 31, 2023.