The Russian-Kyrgyz Development Fund placed $265 out of available $350 mln in Russian banks. Chairwoman of the Board of the Fund Nursulu Akhmetova told today at a meeting of the Committee on Budget and Finances.
According to her, as of today, the registered capital of the Fund is $ 350 million. For the first 7 months of work, the Fund financed projects at $ 43 million, it also issued 1,200 billion soms through the state banks. "In 2016, we have allocated additional 350 million soms to KICB commercial bank and will allocate 700 million soms to the state-owned banks," Nursulu Akhmetova said.
In 2016, the Fund plans to finance projects at $ 160 million. As for $ 265 million of temporarily free funds, according to the head of the Board, they are placed in Russian banks. "These are disposable securities in US dollars, purchased on the secondary market, which cost about $ 130 million. There are also Vnesheconombank deposits, the weighted average yield on which is about 4 percent, to be precise- 3.73 percent," Nursulu Akhmetova noted.
In response to the question of deputies, why it was impossible to place these funds in Kyrgyz banks that they work for the benefit of the Kyrgyz economy, she noted that $10 million is placed in Aiyl Bank. "RSK Bank refused, saying that it had no reserves. The decision on placement of the funds in Russian banks has been made in 2014 by the Board of the Fund, where the Russian side dominates. At the same time, the Kyrgyz side was against those criteria that were taken into account," Nursulu Akhmetova said, referring to BB + level by Moody's, while Kyrgyzstan got B rating only in December 2015.
"There was a certain lack of confidence in the banking sector of the Kyrgyz Republic, especially as our government did not issue securities in US dollars and was only going to do it, by the way, it was an offer of our Board also," she added.
In conclusion, the head of the Fund's Board reported that on February 18, 2016 the Kyrgyz side and the Board raised the question on the amendments and the return of funds to the territory of the Kyrgyz Republic. "This meeting was attended by member of the Board - Minister of Finance of the Kyrgyz Republic Adylbek Kasymaliev. He can confirm my words. We carefully and thoroughly discussed this issue, and Russian representatives of the Council asked for information about the capacity of our banking sector, we believe, that decision on the return of funds to the republic will be made in the nearest future," Nursulu Akhmetova expressed hope.