Kyrgyz MSE Finance Facility II

complete

KMSFF II continues and expands EBRD’s existing MSE Finance Facility, which was started in early 2002 and disbursed 15,000 loans to MSEs so far. Within the established framework structure EBRD will extend credit lines to existing and potentially new partner banks in the Kyrgyz Republic, who will on-lend these funds exclusively to micro and small enterprises (MSEs). The project aims to broaden the access for MSEs to formal sector finance. Special emphasis will be placed on first time borrowers and MSEs in rural areas. The transition impact is expected to be high. The institution building and strengthening of local banks will continue by providing the necessary debt funding and technical assistance. Special emphasis is placed on the regional development of the Kyrgyz small business and financial sector. Commercial banks in the Kyrgyz Republic to be selected by EBRD, including AKB Kyrgyzstan, Halyk Bank Kyrgyzstan, Kazkommertsbank Kyrgyzstan, Inexim Bank. USD 20 million EBRD financing. Up to USD 30 million, including potentially bi-lateral funds for on-lending and technical assistance. The partner banks will follow the EBRD’s environmental Procedures for Small and Micro Loans in relation to all sub-loans financed through the credit line. In implementing these procedures, the banks will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements. EUR 1.1 million EU funds. Additional TC up to EUR 1.9 million will be sought. Oksana Pak email: pako@ebrd.com