ADB to further back SMEs in Kazakhstan
The Asian Development Bank is providing a $228 million loan to develop small- and medium-sized enterprises (SMEs) through participating banks and the state-owned, JSC Damu Entrepreneurship Development Fund (Damu), in Kazakhstan.
“In Kazakhstan, SMEs are important supporters of economic growth and key contributors to income generation and employment creation. The provision of medium-term financing to SMEs is essential to increase their productivity and competitiveness,” said ADB’s Kazakhstan Country Director Jinlin Yang.
”The project will focus on lending to businesses outside the bigger cities, and will prioritize investments in fixed assets and women entrepreneurs.”
The project loan agreement was signed by Jinlin Yang and the Chairperson of Damu’s Management Board, Lyazzat Ibragimova.
Under the terms of the agreeement, ADB will provide a 5 year
loan to Damu, guaranteed by the Republic of Kazakhstan. Damu will
make the funds available to DeltaBank, KazInvestBank,
KazKommertsbank and Tsesnabank which will extend loans, denominated
in tenge, to their SME clients.
The loan is the last part of a $500 million Small and Medium
Enterprise Investment Program multitranche financing facility
approved by ADB in September 2010.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.
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