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  • Animal husbandry and agricultural loans are a significant part of FMCC’s loan portfolio. A loan taken from FMCC helped Akylbek Abdyjaparov increase his number of livestock.
    AKDN
  • Loans received from FMCC, most recently under the Women’s Entrepreneurship Programme helped Mashraphan Zholdosheva grow and expand her grocery shop business in Japalak village, Osh Oblast, Kyrgyzstan.
    FMCC
  • In the Kyrgyz Republic, housing loans represent 35 percent of FMCC’s total portfolio.
    AKDN / Jean-Luc Ray
  • Sultanaliev Monolbek, a farmer in Naryn town, Kyrgyzstan has received loans from FMCC and a grant from AKF/MSDSP to diversify his agricultural business from animal husbandry to a successfully operating green house.
    FMCC
  • While most microfinance institutions have a strong focus in Bishkek and other urban areas, the First MicroCredit Company, Kyrgyz Republic (FMCC-K), targets rural areas in accordance with its mandate to serve clients who do not have access to financial services.
    FMCC
Microfinance

The First MicroCredit Company, Kyrgyz Republic (FMCC), operated by the Aga Khan Agency for Microfinance, is the largest microfinance provider in the southern region of the Kyrgyz Republic. 

Since gaining independence in 1991, the Kyrgyz Republic has undergone an extensive economic liberalisation programme and rapid privatisation. However, the development of this landlocked and mountainous country is constrained by inadequate infrastructure, underdeveloped remote regions, and a shortage of qualified workers. Agriculture, trade, and gold production have become the Kyrgyz Republic's dominant economic sectors. The agricultural sector accounts for approximately 18 percent of the country’s GDP and employs nearly half of the working population. Remittances are equivalent to about a quarter of GDP, making the country vulnerable to microeconomic shocks.

The number of microfinance organisations increased rapidly until mid-2012 when action was taken by the regulator, the National Bank of the Kyrgyz Republic, to regulate the boom in the small loans sector. While most microfinance institutions have a strong focus in the capital city of Bishkek and other urban areas, FMCC targets rural areas in accordance with its mandate to serve clients who do not have access to financial services.

FMCC was established in 2006 to provide microfinance facilities in the rural mountainous areas of the Osh and Naryn provinces, which suffer from some of the highest poverty rates in the country. Despite the difficulties of operating in the mountainous region and amid economic hardship, FMCC has now grown its network to 15 branches and outlets, serving more than 14,000 clients, with over 90 percent in rural areas. FMCC is now the largest microfinance provider in the southern region of the Kyrgyz Republic.


First MicroCredit Company(FMCC) client in Kyrgyzstan. Women represent 44 percent of FMCC’s borrowers.
Copyright: 
AKDN

FMCC’s activities focus on providing loans, approximately two thirds of which are in the livestock and agricultural sector, reflecting the macroeconomic characteristics of the country. The loan portfolio has grown rapidly, with financing provided for animal husbandry, trading and enterprise activities, housing improvement and education, as well as agricultural inputs for growing cotton, potatoes, vegetables, wheat. FMCC also provides loans to SMEs, which are generally involved in trade, manufacturing and service activities that enable clients to increase working capital, acquire fixed assets and develop or renovate business premises. Women represent 43 percent of FMCC’s borrowers.

Select, ambitious women are involved in the Women’s Entrepreneurship Project. Developed in collaboration with the Asian Development Bank to improve the quality of life among women in rural areas and small towns, a revolving credit line supports female entrepreneurs engaging in startups, business expansion, and the diversification and/or modernization of business operations.

In alignment with FMCC’s vision to adopt digital financial services, the ELSOM electronic-wallet, a digital repayment service, enables clients to repay loans via mobile phones, saving time and travel costs.  It also enables FMCC to reach more remote clients.

FMCC is undergoing a transformation to the First MicroFinance Company (FMFC) which will allow it to expand product range, launch digital finance services.