The provision of a senior unsecured loan of up to US$ 40 million in KZT equivalent to microfinance organization KMF ("KMF" or the "Company") will help to address the economic impact of the Covid-19 pandemic. Proceeds of the proposed loan will be on-lent to local private micro-, small and medium-sized enterprises ("MSMEs") and individuals for business purposes to cover liquidity needs that may arise as a result of Covid-19. This project was approved as part of the Bank's response to the Covid-19 pandemic.
The operation will enable KMF to increase the availability of short-term financing to MSMEs and individuals facing liquidity stress due to the Covid-19 crisis in Kazakhstan.
ETI score: 80
The goal of the operation is to ensure resilience of the Company and the financial sector, and to preserve competition in the sector.
Resilient: availability of funding in times of suspended cash inflows in support of businesses experiencing direct and indirect economic impacts of the Covid-19 pandemic will support continued operations of the institution. The latter will also support the resilience of the entire MFO sector.
Competitive: the project will support KMF's lending to private MSMEs, including in the agricultural sector and women-led businesses, in Kazakhstan and preserve competition.
MFO KMF LLC
KMF is a long-standing client of the EBRD since 2005. It is the largest private microfinance organization in Kazakhstan. The company operates through 111 offices and has over 225,000 active clients.
EBRD Finance Summary
Total Project Cost
The project is part of the Covid-19 crisis response. The project allows KMF to respond to liquidity needs of MSMEs experiencing business slowdowns and payment delays. The EBRD remains one of the few institutions providing funding in Kazakhstan in the local currency.
Environmental and Social Summary
Categorised FI (2019 ESP). MFO KMF is an existing client and is required to continue to comply with PRs 2, 4 & 9 and apply EBRD's E&S Risk Management Procedures for Corporate and SME loans and submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
Company Contact Information
+7 (727) 331-74-74
MFO «KMF» 50, Nazarbayev ave. Almaty 050004 Republic of Kazakhstan
PSD last updated
11 Jun 2020
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