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EBRD expands support to Kazakh MSEs
$5 million loan to Alliance Bank will help it scale loan sizes down
The European Bank for Reconstruction and Development is expanding its support
to micro and small enterprises (MSEs) in Kazakhstan by bringing a new partner,
Alliance Bank, under its Kazakhstan Small Business Programme umbrella. A $5
million loan to Alliance Bank as part of the KSBP programme will be used to
finance Kazakh micro and small enterprises including rural and agricultural
businesses.
Alliance Bank was founded in 1993 as a regional bank. Since then it has become
a prominent Kazakh bank with a nationwide network of 16 branches and 56
outlets. Alliance Bank has shown one of the highest growth rates in the
Kazakh banking sector over the past few years, and currently ranks fifth in
Kazakhstan by total assets. This agreement deepens the bank’s relationship
with the EBRD, which last December agreed a separate $10 million trade finance
programme line to Alliance Bank.
The micro, small and medium enterprise (MSME) sector has been one of Alliance
Bank’s core target segments. By mid-2005, it accounted for a sizeable portion
of the bank’s loan portfolio. However, most of these loans were to
medium-sized businesses. The credit technology and capacity-building
programme that are an integral part of the EBRD’s programme will help Alliance
Bank shift focus towards smaller loans and scale down its MSME loan portfolio.
Alliance Bank is entering as part of the third $100 million phase of the
Kazakh Small Business Program (KSBP III). KSBP III targets the financing gap
for micro and small enterprises in Kazakhstan with a focus on rural areas and
agricultural loans The EBRD’s Small Business Programme has provided over $640
million to support small businesses through over 55 financial institutions in
its countries of operation.
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