Kyrgyz Financial Sector Framework

complete

Sub-projects signed under this framework USD 40 million in support of the Bank’s Financial Sector Strategy for Kyrgyz Republic which aims to strengthen the sector by addressing identified gaps and weaknesses and promoting best practice. This framework will enable the Bank to increase both the amount and variety of medium-term funding available to a range of financial intermediaries. The product range will include senior debt facilities for MSME on-lending, residential mortgage lines, consumer finance, leasing, insurance, syndicated loans, subordinated loans, quasi-equity and equity investments. The project will have a significant transition impact in the Kyrgyz Republic by contributing to the structure and extent of financial markets, increase of product range and skills transfer/new standards for business conduct. The project will support development of the private companies and banking sector in Kyrgyz Republic by increasing medium and long-term financing to the productive sector of the economy through local banks. Finally, application of the EBRD’s List of Minimum Standards (LMS) and obligatory arrangements as regards mortgage-related insurance products is expected to contribute to the financial discipline within the banks and stimulate the development of the insurance sector in the Kyrgyz Republic. Existing Partner Banks (“PBs”) and new partner financial intermediaries including banks, leasing, mortgage and insurance companies (“FIs”). USD 40 million. USD 40 million. Participating Financial Institutions will be required to comply with the EBRD’s Environmental Procedures for Intermediated Financing through Local Banks, including ensuring compliance with the applicable national environmental, health, safety and labour standards and regulations, adherence to the EBRD’s Environmental Exclusion and Referral List and submission of annual environmental reports to the Bank. Project will be complemented by grant funding in order to provide required technical assistance tailored for each financial intermediary to accompany transactions on an as-needed basis.