The European Bank for Reconstruction and Development is channeling US$ 5 million to support the expansion of lending programmes by one of the largest and most successful micro-finance institutions in the Kyrgyz Republic.
The credit line to the microfinance organisation FINCA, a long-standing client of the EBRD, will consist of two parts. US$ 2 million will be allocated under the Kyrgyz Sustainable Energy Financing Facility (KyrSEFF) to finance companies and families wishing to make energy-efficiency improvements, and the remaining US$ 3 million will finance micro and small businesses.
FINCA is an established microcredit organisation in the Kyrgyz Republic with about 130,000 clients, mostly in rural areas. It has about 100 offices and is represented in every district of the country. “We share the EBRD’s goal to support the energy efficiency drive throughout the country, which is also one of our strategic goals,” says FINCA’s Director General, Makhmud Saidakhmatov.
EBRD Head of Office in Bishkek, Larisa Manastirli, said: “This credit line marks FINCA’s first participation in KyrSEFF, which was launched a year ago. KyrSEFF is part of the EBRD initiative to finance energy efficiency and sustainable energy throughout its region of operations. We are also proud that through the FINCA network we are able to reach micro and small private businesses throughout the country.”
Under KyrSEFF, credits are complemented by €3.8 million of donor funding provided by the European Union Investment Facility for Central Asia (IFCA) for technical assistance to help companies identify the most suitable energy saving projects and incentive grants of up to 20 per cent of the loan amount for completed projects.
Since the start of its operations in the Kyrgyz Republic, the EBRD has invested approximately US$ 630 million in about 110 projects across different sectors of the Kyrgyz economy.