EBRD signs first loan under Local Currency Lending Programme in the Kyrgyz Republic
Friday 8 July 2011
(The FINANCIAL) – The EBRD is boosting its support to the financial sector in the Kyrgyz Republic with a 270 million Kyrgyz som loan (US$ 6 million equivalent) to Bai Tushum and Partners, one of the country’s leading non-bank microfinance institutions, to provide more affordable som loans to small businesses.
With this local currency loan the Bank launches in Kyrgyzstan the EBRD’s new Local Currency Lending Programme in Early Transition Countries (ETC), as part of its drive to reduce the risks – exposed by the economic crisis – of depending excessively on foreign currency funding.
The new programme allows the EBRD to support private sector development by extending local currency-denominated loans to eligible banks, microfinance organisations and private enterprises, which will avoid taking on exchange rate risks.