The EBRD is providing further support for the development of the private sector in the Kyrgyz Republic with a credit line for small businesses.
The Bank is providing a $4 million credit line to assist Demir Kyrgyz International Bank (DKIB) in its drive to diversify its funding base and to develop its lending activities.
With the support of the EBRD, DKIB will be able to address the current lack of long-term financing to the economy and provide much needed lending to small companies.
The proceeds of the loan will be used to finance operations of micro, small and medium enterprises operating in Kyrgyz Republic with credits ranging from $10,000 to $400,000.
This will foster the further development of the private sector in the Kyrgyz Republic and will increase competition in the Kyrgyz banking sector.
The EBRD loan is part of the $40 million Kyrgyz Financial Sector Framework, and is accompanied by technical assistance aimed at training DKIB staff in credit appraisal and improving the bank’s credit approval procedures.
“Development of the private sector through support to micro, small and medium companies is one of the EBRD’s key objectives in the Kyrgyz Republic. In the current tight credit market, the EBRD is helping DKIB provide much needed long-term finance to local enterprises. The credit-line will help the Kyrgyz financial sector and will strengthen the real economy by stepping up the flow of credits”, said Kenji Nakazawa, Head of the EBRD office in the Kyrgyz Republic.
“DKIB is a leading player in the Kyrgyz banking system, with the second biggest deposit base, which demonstrates clients’ confidence in the bank. The MSME Credit Line offered by the EBRD will support Kyrgyz economy during current financial crisis. DKIB has developed a good cooperation with the EBRD during the last 12 years, and this cooperation will continue in the future”, said Mr. Sevki Sarilar, General Manager of DKIB.
DKIB is one of the leading players in the Kyrgyz banking sector, ranking sixth in the country. Since its establishment in 1997, the EBRD has provided DKIB with over $1.5 million in equity investment and trade facilitation funds.
To date, the Bank has committed $138 million to the Kyrgyz economy through more than 50 projects in the infrastructure, corporate, energy and financial sectors.