Project description
and objectives:
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A project designed to support the small business sector in Kazakhstan by making funds available to local banks for on-lending to micro and small enterprises (MSEs).
The operation's principal objectives are to: (i) provide finance to MSEs, which currently have insufficient access to formal sector finance; (ii) support the development of Kazakhstan's financial sector so that local banks are able to provide MSEs with access to finance on a permanent basis.
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Transition impact:
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The KSBP will support the development of a diversified market economy by providing funds to the MSE sector, the requirements of which are ill-served by traditional bank lending. The project will contribute to the improvement of banking procedures, credit operations in particular, in each of the participating banks, thereby strengthening the private banking sector as a whole. The KSBP will also have a strong demonstration effect within the banking sector. By lending profitably to MSEs, the participating banks will show that this is a valuable business sector, which in turn will encourage further competition and the wider availability of funds.
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The client:
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Kazakhstan's Fund for Small Business Support will borrow from the EBRD and allocate lines of funding to selected participating banks for on-lending to MSEs. A sovereign guarantee will be provided for this project.
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EBRD finance:
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A loan of US$ 77.5 million (ECU 70.5 million).
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Total project cost:
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US$ 77.5 million (ECU 70.5 million).
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Environmental impact:
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The participating banks will carry out their operations in accordance with the EBRD's Environmental Procedures for Small and Micro Loans. In implementing these procedures, participating banks will require their borrowers to comply with national/local health and safety, environmental and public consultation requirements. The participating banks will submit annual environmental reports to the EBRD.
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Technical
cooperation:
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Technical cooperation funding of approximately US$ 4.4 million (ECU 4 million) is to be arranged.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Maria Teresa Zappia, Operation Leader: zappiam@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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