EBRD channels US$ 5 million in tenge to Kazakh micro and small firms through KMF
May 19. EBRD
By Svitlana Pyrkalo
The European Bank for Reconstruction and Development (EBRD) and KMF, the largest non-banking microfinance institution in Kazakhstan, continue their efforts to improve access to finance for micro, small and medium-sized enterprises (MSMEs) in the regions of Kazakhstan.
The EBRD is providing a financing facility for KMF equivalent to US$ 5 million in local currency, tenge, which KMF will use for on-lending to local private companies. At least 60 per cent of the loan will be disbursed to clients outside large cities.
To date KMF has issued more than one million of loans worth over US$ 1.2 billion throughout the country.
“We believe that providing opportunities to entrepreneurs who develop micro and small businesses and create employment outside large cities is a key condition for healthy, balanced growth in any economy,” said EBRD Director for Kazakhstan, Janet Heckman. “Non-bank institutions such as KMF, a longstanding partner of the EBRD, play a vital role in improving access to finance in such areas.”
“The new EBRD-KMF project will further improve access to finance for MSMEs. Both KMF and the EBRD prioritise support for private enterprises outside big cities, especially agricultural enterprises in rural areas,” said the CEO of KMF, Shalkar Zhussupov.
Since the beginning of its operations in Kazakhstan 22 years ago, the EBRD has invested over US$ 7 billion in the country’s economy, with half of these projects supporting the private sector.