The European Bank for Reconstruction and Development (EBRD), a multilateral development finance institution headquartered in London, has agreed to provide a local-currency loan in an amount equivalent to USD 3 million to Arnur Credit, a microfinance institution (MFI) in Kazakhstan, for on-lending to micro- and small enterprises (MSEs) in rural areas of the country. EBRD will also assist in technical support, capacity building and training of personnel.
For the year 2011, Arnur Credit reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 14.1 million, a gross loan portfolio of USD 12.2 million, approximately 6,600 active borrowers, return on assets (ROA) of 5.51 percent and return on equity (ROE) of 18.9 percent. Arnur Credit does not accept deposits. As of January 1, 2013, EBRD has committed approximately USD 10.7 billion to 318 projects in Eastern Europe, Central Asia and North Africa.
By Brendan Millan, Research Associate
About the European Bank for Reconstruction and Development (EBRD)
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). As of January 1, 2013, EBRD has committed approximately USD 10.7 billion through 318 projects.
About Arnur Credit
Established in 1991, Arnur Credit is a microfinance institution (MFI) in Kazakhstan focusing on agribusiness and rural areas of the country. For the year 2011, Arnur Credit reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 14.1 million, a gross loan portfolio of USD 12.2 million approximately 6,600 active borrowers, return on assets (ROA) of 5.51 percent and return on equity (ROE) of 18.9 percent. The institution does not accept deposits.
Sources and Additional Resources:
[1] European Bank for Reconstruction and Development: “EBRD Supports Financing to Micro and Small Enterprises in Kazakhstan” by Svitlana Pyrkalo, http://www.ebrd.com/english/pages/news/press/2013/130218a.shtml
MicroCapital.org story, February 11, 2013, “European Bank for Reconstruction and Development, Raiffeisen Bank Aval, John Deere Partner to Provide Farming Equipment in the Ukraine”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-raiffeisen-bank-aval-john-deere-partner-to-provide-farming-equipment-in-the-ukraine/
MicroCapital.org story, January 31, 2013, “New Microfinance Regulation in Kazakhstan Caps Interest Rates at 56%, Seeks to Increase Transparency, Foreign Investment”, https://www.microcapital.org/microcapital-brief-new-microfinance-regulation-in-kazakhstan-caps-interest-rates-at-56-seeks-to-increase-transparency-foreign-investment/
MicroCapital.org story, December 18, 2012, “Kazakhstani Government Looking to Triple Microloan Volume by Boosting Microcredit Portfolio to $80m,” https://www.microcapital.org/microcapital-brief-kazakhstani-government-looking-to-triple-microloan-volume-by-boosting-microcredit-portfolio-to-80m/
MicroCapital.org story, February 29, 2012, “Rural Impulse Fund II, MicroVest II, ASN-Novib Fund Purchase 45% Stake In Arnur Credit Microfinance Institution of Kazakhstan”, https://www.microcapital.org/microcapital-brief-rural-impulse-fund-ii-microvest-ii-asn-novib-fund-purchase-45-stake-in-arnur-credit-microfinance-institution-of-kazakhstan/
MicroCapital.org story, MicroCapital.org story, January 17, 2012, “MICROCAPITAL BRIEF: responsAbility Invests $2.3m in Microfinance Institutions Arnur Credit of Kazakhstan, FINCA Armenia, FinDev of Azerbaijan”, https://www.microcapital.org/microcapital-brief-responsability-invests-2-3m-in-microfinance-institutions-arnur-credit-of-kazakhstan-finca-armenia-findev-of-azerbaijan/
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD),
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital Universe Profile: Arnur Credit, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arnur+Credit#Description_140_word_limit_
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