Funder

Through well-organized co-operative organizations to provide affordable financial services to economically - active, small and medium size entrepreneurs and people with low income who try to make business in order to be profitable and economically independent.

Our general challenge is to fulfill our mission statement while remaining financially reliable and stable. The cooperatives and credit unions that service over 35 000 low income people in rural areas of the Kyrgyz Republic who had in fact limited access to the loans and other financial services after the break up of the former Soviet Union and taking independence of the Kyrgyz Republic. In October 2002, inside National Cooperative Association (CUCAK), cooperatives and credit unions created the Fund of Institutional Defense (FID) - not registered Fund that provided to cooperatives and credit unions financial assistance when they needed but those finances were not enough. Besides, cooperative sector of Kyrgyzstan needed the own registered financial institution that could provide enough finances to more number of cooperative organizations. The matter was that people in rural regions started to understand the need for themselves to unite for poverty alleviation and making their business more profitable. In February, 2005, Credit Union & Cooperative Association of Kyrgyzstan (CUCAK) jointly with its members - credit unions and cooperatives decided on a base of the FID to establish the Cooperative Stabilization Fund (CSF) with objective to create a central cooperative rural and microfinance institution for supporting the stability of the co-operative sector in Kyrgyzstan through providing wholesale financial services to cooperative organizations and for this adjusting the partnership with foreign investors. During these years owners (CUs & Coops) of CSF represent a well organized and professional mechanism for wholesale lending to rural small and medium sized entrepreneurs that until recently have had limited access to loans in the country. On 3 March 2005 Cooperative Stabilization Fund registered as a micro lending company (closed joint - stock company) and obtained the certificate from the National (Central) Bank of the Kyrgyz Republic within the framework of the Law on Microfinance organizations in the Kyrgyz Republic, approved and undersigned 23.07.2002. The CSF received support from CUCAK in the areas of institutional development and management and in providing wide client base consisting of CUs and Coops who are the CUCAK's members. CSF is a local company registered in Tax Inspection and Social Fund bodies. CSF pays all local taxes and duties in adherence to requirements set in legislation. CSF uses conservative, market oriented, and competitive portfolio management and pricing policies. Principal loan repayments are used for the revolving loan fund. The founders or donors do not subsidize operational expenses. The CSF meets its operational costs through interest income. The entire earned income is directed to covering all expenses; net earnings are re-invested into lending capital and are directed to increase of capital reserves of the CSF. For now, only the cooperative sector has the most branched net in Kyrgyzstan, it means that co-operatives are located in all districts of the country. Local currency - Kyrgyz som.

Cacher