The UK-based European Bank for Reconstruction and Development (EBRD) will loan the local-currency equivalent of USD 10 million to KazMicroFinance (KMF), a Kazakhstan non-banking financial institution, in an effort to increase access to credit for micro-, small and medium-sized enterprises in rural areas of the country [1]. The terms of the loan are unavailable.
According to the US-based nonprofit Microfinance Information Exchange (MIX), KMF reported total assets USD 104.3 million, gross loan portfolio of USD 82.5 million, return on assets (ROA) of 5.92 percent, return on equity (ROE) of 24.58 percent and 73,700 active borrowers as of 2012.
EBRD invested approximately USD 6.3 billion in Kazakhstan as of May 2013 [1]. In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
By Jennifer Young, Research Associate
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral 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 North Africa. 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 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
About Kazmicrofinance LLC KazMicrofinance LLC, founded in 1997, is a non-banking financial institution that offers training as well as individual and group loans across Kazakhstan. According to the US-based nonprofit Microfinance Information Exchange (MIX), KMF reported total assets USD 104.3 million, gross loan portfolio of USD 82.5 million, return on assets (ROA) of 5.92 percent, return on equity (ROE) of 24.58 percent and 73,700 active borrowers as of 2012.
Sources and Additional Resources
[1] European Bank for Reconstruction and Development Press Release: “US$ 10 Million in Tenge Will Help KazMicroFinance Access Villages,” http://www.ebrd.com/pages/news/press/2013/130523.shtml
MicroCapital Story, May 23, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development to Loan $77m to UniCredit Bank Serbia for Small and Medium-sized Enterprises,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-to-loan-77m-to-unicredit-bank-serbia-for-small-and-medium-sized-enterprises/
MicroCapital Story, May 7, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Opens $112m in Credit Lines to Société Générale Expressbank, Sogelease Bulgaria for On-lending, Leasing to Small, Medium-Sized Enterprises,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-opens-112m-in-credit-lines-to-societe-generale-expressbank-sogelease-bulgaria-for-on-lending-leasing-to-small-medium-siz/
MicroCapital Story, April 5, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $19m to UniCredit Serbia for Small and Medium-sized Enterprises,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-19m-to-unicredit-serbia-for-leasing-to-small-medium-sized-enterprises/
MicroCapital Story, November 4, 2012, “MICROCAPITAL BRIEF: Absolute Portfolio Management Dual Return Fund Loans $2.5m to KazMicroFinance of Kazakhstan, Imon International of Tajikistan, Frontiers of Kyrgyzstan, Thaneakea Phum of Cambodia,” https://www.microcapital.org/microcapital-brief-absolute-portfolio-management-dual-return-fund-loans-2-5m-to-kazmicrofinance-of-kazakhstan-imon-international-of-tajikistan-frontiers-of-kyrgyzstan-thaneakea-phum-of-cambodia/
MicroCapital Story, June 1, 2012, “MICROCAPITAL BRIEF: ResponsAbility Loans $6.4m to Microfinance Institutions KMF of Kazakhstan, FINCA Jordan, FINCA Azerbaijan,” https://www.microcapital.org/microcapital-brief-responsability-loans-6-4m-to-microfinance-institutions-kmf-of-kazakhstan-finca-jordan-finca-azerbaijan/
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