| EBRD continues to support financial sector in Kyrgyz Republic |
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28/07/2010 15:41 (560 Day 00:44 minutes ago) | |||||
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The FINANCIAL -- The EBRD is providing KGS 67.5 million to the Micro Finance Company “Bai-Tushum and Partners” for on-lending to micro and small enterprises (MSEs).
Today the Bank has disbursed the first of two equal tranches under a KGS 135 million (equivalent of USD 3 million) loan agreement signed in March 2010.
Bai-Tushum is the second largest microfinance institution in the Kyrgyz Republic with USD 50.6m in total assets and USD 12.9m in equity as of end-June 2010. The Company provides loans to MSEs in all sectors, with a particular focus on agri-lending, offering a range of established agricultural loan products for crop production, livestock and agri-processing.
According to EBRD, the transaction is part of a USD 60 million non-bank MFI framework for Early Transition Countries approved by EBRD in September 2008.
“This is our second disbursement to our partners in Kyrgyzstan since the April events, and the forth facility for Bai-Tushum. It will support the Company’s plan to expand microfinance lending to more urban and rural clients. At the same time the transaction will provide Bai Tushum with much needed long-term local currency funding which will help the Company in hedging its FX risk and strengthen its sustainability. We hope to encourage other commercial lenders to continue financing this important sector for the Kyrgyz economy,” – said Kenji Nakazawa, Head of EBRD Bishkek Resident Office.
“The project will enable us to expand our loan portfolio, thereby meeting the needs of smaller borrowers throughout the country. We also expect this project to help us attract additional commercial funding. This is particularly important now when MFI sector needs support and new funding to also re-launch lending in the southern regions of the country, affected by the recent events in Osh and Jalalabad. We are thankful for EBRD support and hope other lenders will also increase their funding of Kyrgyz MFI sector,” – added Gulnara Shamshieva, the CEO of Bai-Tushum.
To date, the EBRD has extended three loan facilities to Bai-Tushum, one of which (USD 2 million senior loan) was fully paid-off in July 2008. Since the first EBRD loan was extended to the Company in 2005, approximately USD 141 million has been on-lent to over 71,000 micro and small enterprises with an average loan size of USD 2,000.
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