EBRD pledges new funds to support trade and resource efficiency in Kyrgyz Republic

• EBRD providing financing of up to US$ 25 million to Demir Kyrgyz International Bank
• Funds will be used to promote green lending and trade
• New growth opportunities for domestic businesses

New funds of up to US$ 25 million (€21.5 million) provided by the European Bank for Reconstruction and Development (EBRD) to Demir Kyrgyz International Bank (Demir Bank), one of the largest lenders in the Kyrgyz Republic, will help to support trade and green innovation in the country.

The EBRD’s financing package consists of the following elements:

• A senior loan of up to US$ 20 million (€17.2 million) to Demir Bank under the Kyrgyz Republic’s Green Economy Financing Facility (KyrSEFF III). These funds will help to address pressing environmental issues in a country badly affected by climate change. The proceeds will be available either in US dollars or in synthetic local currency (Kyrgyz som) and will help local businesses and households to improve their climate resilience and adaptation, reduce pollution and promote the sustainable use of water.

• The EBRD is also increasing Demir Bank’s trade finance limit by up to US$ 5 million (€4.3 million) under its Trade Facilitation Programme (TFP). This will enable private domestic businesses to import necessary goods, services and equipment, and export their products.

The TFP supports international trade to, from and between economies where the Bank operates, including the Kyrgyz Republic. Through the TFP, the EBRD provides guarantees to international confirming banks, taking on the political and commercial payment risks of international trade transactions undertaken by banks in those countries.

Demir Bank is the first bank in the Kyrgyz Republic with international ownership and foreign capital and has been an EBRD client since 1997.

The EBRD has been active in the Kyrgyz Republic since 1992, investing almost €1.16 billion in the country through 287 projects, mostly in sustainable infrastructure and the private sector.