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EBRD credit line for small and medium-sized enterprises will boost Kyrgyzstan's private sector developm
Kyrgyzstan will receive support to develop its private sector and banking system in the form of a US$ 10.5 million (ECU 8.75 equivalent) credit line from the European Bank for Reconstruction and Development (EBRD) to the National Bank of Kyrgyzstan. The loan agreement was signed today in London by Stijn Albregts, Director of the EBRD Country Team for Kyrgyzstan, and Marat Sultanov, Chairman of the National Bank of Kyrgyzstan.
Mr Albregts said: "This project supports Kyrgyzstan's reform efforts by providing much-needed investment resources, and strengthening its SME sector and banking system, which are key elements for transition to a market economy. The project is an essential part of a comprehensive assistance programme for the financial and private sectors in Kyrgyzstan which the EBRD has developed in close cooperation with other international financial institutions and bilateral agencies."
The project has two objectives: to provide foreign currency financing to eligible private domestic enterprises; and to support the development of a core group of local commercial banks. The EBRD credit will be on-lent, through Kyrgyz commercial banks, to private small and medium-sized enterprises.
The project has a significant technical cooperation component, in the amount of approximately US$ 1.5 million, to assist enterprises to develop and implement their investment projects, support the institution building of the local participating banks, and help the National Bank of Kyrgyzstan to implement the project.
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