European Bank for Reconstruction and Development (EBRD), an international finance institution headquartered in London, is providing a loan of KGS 67.5 million (USD 1.5 million) to Bai Tushum and Partners, a microfinance institution (MFI) in the Kyrgyz Republic, for on-lending to micro- and small enterprises (MSEs). This constitutes the first of two equal tranches under a KGS 135 million (USD 3 million) loan agreement signed in March 2010. According to EBRD, the transaction is part of a USD 60 million non-bank MFI framework for “Early Transition Countries,” which was approved by EBRD in September 2008.
According to Gulnara Shamshieva, the chief executive officer of Bai Tushum, “The project will enable [Bai Tushum] to expand its loan portfolio, thereby meeting the needs of smaller borrowers throughout the country. The project is also expected to help [Bai Tushum] 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 ethnic fighting in Osh and Jalalabad.”
As of December 2008, Bai Tushum reported USD 53.1 million in total assets, a gross loan portfolio of USD 35.1 million and 18,900 active borrowers.
By Conner Brannen, Research Assistant
About European Bank for Reconstruction and Development (EBRD):
The European Bank for Reconstruction and Development (EBRD) is an international finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions (MFIs). As of the end of 2008, EBRD has operating assets worth EUR 5.2 billion, the equivalent of over USD 7 billion. Operating assets for fiscal 2009 are EUR 6.1 billion (USD 8 billion).
About Bai Tushum and Partners:
Bai Tushum and Partners is a microfinance institution (MFI) based in the Kyrgyz Republic. It was established in 2000 as a subsidiary of Bai Tushum Micro Credit Agency, which was “established through the consolidation of two farmer-lending associations by ACDI/VOCA (USA) and CARITAS (Switzerland).” Its products include agroloans; trade, service, and production loans; mortgage loans; financing equipment; and consumer loans. MicroCapital reported on Bai Tushum’s successful transition from a microcredit company to an MFI in 2009. As of December 2008, Bai Tushum reported USD 53.1 million in total assets, a gross loan portfolio of USD 35.1 million and 18,900 active borrowers.
Sources and Additional Resources:
European Bank for Reconstruction and Development (EBRD): “EBRD continues to support financial sector in Kyrgyz Republic,” by Ina Coretchi, July 28, 2010: http://www.ebrd.com/pages/news/press/2010/100728.shtml
The Financial: “EBRD continues to support financial sector in Kyrgyz Republic,” July 28, 2010: http://finchannel.com/news_flash/Banks/68354_EBRD_continues_to_support_financial_sector_in_Kyrgyz_Republic/
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital Universe Profile: Bai Tushum and Partners: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bai+Tushum+and+Partners
MICROCAPITAL BRIEF: Bai Tushum & Partners and Mol Bulak, Two Microfinance Organizations, Launch Revival Foundation for Devastated Regions of Kyrgyzstan, June 18, 2010: https://www.microcapital.org/microcapital-brief-bai-tushum-partners-and-mol-bulak-two-microfinance-organizations-launch-revival-foundation-for-devastated-regions-of-kyrgyzstan/
MICROCAPITAL BRIEF: Bai Tushum and Partners, a Microfinance Institution (MFI) Based in the Kyrgyz Republic, Agrees to Adopt ‘FinnOne’ Banking Software from Nucleus Software Exports Limited, December 15, 2009: https://www.microcapital.org/microcapital-brief-bai-tushum-and-partners-a-microfinance-institution-mfi-based-in-the-kyrgyz-republic-agrees-to-adopt-finnone-banking-software-from-nucleus-software-exports-limited/
MICROCAPITAL.ORG STORY: International Finance Corporation (IFC) Supports Transformation of Kyrgyz Republic’s Bai-Tushum From Microcredit to Microfinance Company With the Intention Becoming a Deposit-Taking Institution, October 20, 2009: https://www.microcapital.org/microcapitalorg-story-international-finance-corporation-ifc-supports-transformation-of-kyrgyz-republic?s-bai-tushum-from-microcredit-to-microfinance-company-with-the-intention-becoming-a-d/
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