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Kyrgyzstan receives new EBRD loan for on-lending of MSMEs

12 December 2014 17:10 (UTC+04:00)
Kyrgyzstan receives new EBRD loan for on-lending of MSMEs

By Aynur Jafarova

The European Bank for Reconstruction and Development (EBRD) and the German development finance institution, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH have allocated a financing package worth $10 million for Bai Tushum Bank (BTB), one of its partner banks in Kyrgyzstan.

The funds will be used for on-lending to micro, small and medium-sized enterprises (MSMEs) in Kyrgyzstan, EBRD said on December 12.

BTB will receive an EBRD loan in Kyrgyzstan’s national currency som equivalent of $2 million, while additional $8 million will be provided by DEG.

BTB has been operating in the micro lending market for over 14 years. It is a longstanding partner of the EBRD and the German KfW Group and has a particularly strong record in reaching out to small entrepreneurs throughout the country.

It is the first microfinance company to successfully transform into a bank in Central Asia. Today BTB is one of the largest micro and small-business lenders in Kyrgyzstan, with 65 lending outlets.

“With this new loan, the ninth facility to Bai Tushum, the EBRD is responding to an increased demand for local currency funding from local MSMEs,” Larisa Manastirli, Head of the EBRD’s Bishkek Resident Office, said at the signing ceremony.

“Considering the severe shortage of local currency funding in the Kyrgyz Republic, we highly appreciate the EBRD’s support in providing us with medium-term funding in local currency,” Gulnara Shamshieva, the General Manager of Bai Tushum Bank, said. “We are also pleased to enter into cooperation with DEG, a well-recognized institution in our region. This cooperation will help us build a sustainable and profitable business focused on MSMEs, strengthen our product line and grow sustainably.”

Since the beginning of its operations in the country, the EBRD has invested over $592 million in Kyrgyzstan in 118 projects across many different sectors of the economy.

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