Bishkek residents get lower loan rates for clean heating

Residents of Bishkek and its surrounding districts in Kyrgyzstan are benefiting from lower interest rates on preferential loans designed to help them switch from coal heating to more environmentally friendly systems like heat pumps.

The interest rate for these loans has been reduced from an initial 8% to 6% annually, following amendments to a government decree. The maximum loan amount available is 1 million Kyrgyz som (approximately $11,500 USD), with a repayment term extending up to five years. Financing can be obtained through partner banks: "ABank," "Bakay Bank," and "Eldik Bank."

To secure a loan, homeowners must first consult with equipment suppliers. Specialists will then assess the building, calculate the required system capacity, and prepare a cost estimate. This program is part of the "Improving Air Quality" project, specifically targeting Bishkek and nearby areas where winter smog is a significant problem. As of early July, 11 loans totaling 11.49 million Kyrgyz som have been issued under this program. Additionally, a separate credit line of up to 5 million Kyrgyz som at 10% annual interest for up to five years is available for equipment suppliers.

“

Initially, the rate was 8 percent per annum. After amendments to the cabinet's decree, it was lowered to 6 percent.