The European Bank for Reconstruction and Development (EBRD), a London-based international finance institution, has distributed a loan equivalent to USD 10 million to the Kyrgyz arm of UniCredit Bank, which is based in Italy and has operations in 22 countries, for lending to micro-small and medium-sized enterprises (MSMEs) in the Kyrgyz Republic. Thirty percent of the loan is denominated in local currency. The funding was disbursed from EBRD’s MSME Credit Line, and is the second of two tranches of USD 10 million, the first of which was completed in February 2011. EBRD’s main priorities in Kyrgyz Republic are to foster the private sector, strengthen the financial sector and support infrastructure development.
By Cameron Milani, Research Associate
About the European Bank for Reconstruction and Development (ERBD): The European Bank for Reconstruction and Development (EBRD) is a development 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, Central Asia and more recently in Southern and Eastern Mediterranean region. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In the first half of 2011, EBRD invested in 161 projects with a total value of EUR 3.5 billion (USD 4.8 billion).
Sources and Additional Resources:
European Bank for Reconstruction and Development, “New EBRD Disbursement for Micro and Small Businesses in the Kyrgyz Republic,” http://www.ebrd.com/pages/news/press/2011/111031a.shtml
MicroCapital Article, February 3, 2011: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $3m to Microfinance Provider Kompanion Financial Group of Kyrgyzstan,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconst…
MicroCapital Universe, European Bank for Reconstruction and Development: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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