Kyrgyzayltrust (KAT) project was sponsored in 1996 by the Independent Research Center-Women in Development (IRS-WID), a non-governmental organization based in Kyrgyzstan. Four representatives of IRS-WID attended a dialogue program in Bangladesh to learn the basics of the Grameen model. Grameen Trust provided $50,000 as seed capital to be used by KAT over a two year period.

In 1999, after successful implementation of Grameen replications in two southern areas of Kyrgyzstan, Batken and Lyalak, Grameen Trust approved additional scaling up funds for expansion of the microcredit system. That year KAT was registered as a financial credit company. KAT also obtained a licence from the National Bank of the Kyrgyz Republic to legally undertake microcredit in Batken and Lyalak.

In 2001, KAT had entered its sixth year of operation. During this period it has achieved the following results:

• It has opened 15 branches, 183 centers and formed 802 groups in about 50 villages of Batken and Lyalak, with a total number of 3454 borrowers
  
  
• A training center for women members was set up for training in management, marketing, and economics of small and medium sized businesses.
  
  
• Clients of KAT formed a Council of Members, with 10 women representatives from different centers, to organize exchange visits of centers, cultural activities on holidays, meetings and other events.
  
  IRS-WID began bringing out a newspaper titled "Tunuk" for KAT members. In addition to information on credit activities, it also covers issues of healthcare of women and children, small business, taxation, agribusiness
  
  
• KAT has sent to date 3 staff members to Grameen Trust for training in accounting and management of microcredit programs.

Loan Activities

Approximately 87% of the KAT borrowers undertake trading activities, selling food stuff (rice, milk, meat products, fruits and vegetable), manufactured goods (clothes, perfumery, electrical goods), gasoline, oil, tobacco, cigarettes, either in the local markets or through their own shops. About 5 percent of loanees are involved in agriculture, including cultivation of wheat, tobacco, and apricot. Another 6 percent undertake production activities like sewing clothes, making pastries, production of flour, cooking oil, making bread, carpeting.

Performance and Impact of the Project

In 2001, KAT expanded its loan disbursements and membership. The loan disbursement increased from US$ 259,691 in 2000 to US$ 439,910 in 2001. The number of borrowers has increased from 2,873 at the end of 2000 to 3,454 in December 2001. The repayment rate in February 2002 was 100%

During its six years of operation, KAT has made a strong positive impact on the socio economic life of the poor in Batken and Lyalak.

KAT clients in Batken, Samarkandek, Kulunda, Isphana managed to open their own businesses with loans which include mini-factories, mini-mills, cafes and so on. They learnt how to operate the business and also market their products. They shared their experience with other women of KAT at center and branch meetings. KAT assisted its clients to co-operate with the local Taxation Department, which gave tax exemptions for KAT members, selling in local markets.

The operational self-sufficiency of KAT was 167% for the year of 2001. This was achieved due to economy of operational expenses and maximizing repayment rate by ensuring more efficient supervision of loans disbursed.

For more information write to:

Kyrgyzayltrust
Asanbai, D.44, KV2, 72006, Bishkek
Tel/Fax: 996 - 312 46 47 67
E-mail:
The Kyrgyz Republic