The EDB supports trade finance and SME finance programmes in the Kyrgyz Republic

The Eurasian Development Bank (EDB) and Halyk Bank Kyrgyzstan entered into framework agreements for a total of US $5 million to support trade finance and SME finance programmes. The instruments were signed on 8 August 2018 by Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities at the EDB, and Aikyn Kabulov, Chairman of the Management Board at Halyk Bank Kyrgyzstan. The trade finance agreement is the EDB’s first transaction of this kind in Kyrgyzstan.

Halyk Bank Kyrgyzstan will select sub-borrowers on its own, using the EDB’s eligibility criteria. The sub-loans may be extended in the US dollars, Russian roubles, euro, Kyrgyz som, and Kazakh tenge.

“The agreement we signed today continues our long-time cooperation and is an essential milestone in performing the EDB’s programme to support trade finance in the Kyrgyz Republic. We hope that our efforts will stimulate local banks to make wider use of trade finance and this conforms to the mission and strategy of the EDB as a development institution,” Dmitry Ladikov-Roev comments.

The Projects between the EDB and Halyk Bank Kyrgyzstan are expected to foster the sustainable development of small and medium-sized enterprises in the Kyrgyz Republic, enhance the competitive environment and thereby stimulate production, expand the range of goods and services, and improve the quality of products. By supporting SMEs, the Kyrgyz Republic will achieve a significant effect in developing its market economy.

In 2013 and 2016, the EDB signed two agreements worth the US $5 million each, which were used to finance over 500 micro and small businesses and helped to maintain employment and boost production in the country.

Original source: EDB
Published on 8 August 2018