The planned Facility (KSBP III) is the third and final phase of EBRD's small business programme in Kazakhstan, which started in 1998. KSBP III aims to close the remaining financing gap for micro and small enterprises (MSEs) in remote/rural regions and in the agriculture sector. To this aim KSPB III will assist the banks with dedicated Technical Assistance to build up the necessary institutional capacity for mass scale lending to rural and agricultural MSEs. EBRD will further extend credit lines to selected Kazakh partner banks, including commercial co-financing, for these banks to on-lend the funds to MSEs in rural/agricultural areas. The objective is to further expand the outreach of the Kazakh banks into the regions and to provide access to finance to those MSEs, which were so far neglected due to their remote location, limited size or lack of credit history or collateral.
The transition impact is estimated to be high. The Programme has had already a positive impact on the economy and the Kazakh banking sector via its training and institution building programme. So far more than 200 MSE finance departments have been established, which have disbursed more than 125,000 loans to MSEs. The current extension of the programme into the rural and agricultural sector will provide finance to an important target group and help to ease regional and economic inequalities.
KSBP III will co-operate with the following existing partner banks (Kazkommertsbank, Halyk Savings Bank of Kazakhstan, Bank Turan Alem, ATFBank, Bank CenterCredit) and potentially new partner banks.
USD 55 million framework of senior loans in USD and local currency equivalent financed by EBRD with a potential increase to USD 100 million and co-financing funds up to USD 100 million
USD 155-200 million.
The partner banks will follow the EBRD’s environmental Procedures for Small and Micro Loans in relation to all sub-loans financed through the credit line. In implementing these procedures, the banks will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.
Technical corporation funds currently being sought.
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