Kyrgyzstan Introduces Preferential Loans for Drug and Medical Device Makers

Kyrgyzstan is launching a preferential lending program to bolster its domestic pharmaceutical and medical device industries. The government's move aims to provide state support, modernize production capabilities, and improve the nation's drug security, a critical area given that imports currently fulfill 96% of the country's needs.

The pharmaceutical sector currently represents a mere 0.1% of Kyrgyzstan's total industrial output, with approximately 30 drug manufacturers and 16 medical device producers operating within the country. To align with Eurasian Economic Union (EAEU) requirements, these domestic companies must bring their facilities into compliance with EAEU Good Manufacturing Practice (GMP) and the international ISO 13485 standard by the end of 2027. This necessitates substantial investment in upgrading and reconstructing facilities, acquiring modern equipment, and establishing quality control laboratories.

The new credit mechanism offers financing at annual interest rates of 3% and 5%, with loan terms extending up to 10 and 12 years, respectively. A grace period for principal repayment of up to 24 months is included. The program's total funding exceeds 3.16 billion Kyrgyz soms, with 500 million soms allocated to increase the charter capital of the Development Bank of Kyrgyzstan, which will manage the lending.

This initiative is expected to significantly increase the production of local medicines and medical devices, reduce reliance on imports, create new jobs, and boost the competitiveness of national manufacturers. Furthermore, meeting international standards is anticipated to enhance export potential, opening doors for Kyrgyz pharmaceutical products in EAEU markets and beyond.