MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) May Establish $200m Loan Facility for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs) in Kazakhstan

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, recently announced that it is in the final stage of consideration for the establishment of a “Kazakhstan MSME Framework,” a credit facility totaling KZT 36 billion (USD 200 million) for on-lending to micro-, small and medium-sized enterprises (MSMEs) in the country. If approved, the Kazakhstan MSME Framework will extend loans to banks, leasing companies, and microfinance institutions, focusing primarily on micro- and small enterprises (MSEs) and institutions outside of the major cities of Almaty and Astana. The Framework will issue loans in the Kazakhstani tenge (KZT), with terms of up to 5 years. Information regarding loan size and interest rate has not been disclosed.

EBRD expects that the framework will be supported by undisclosed technical cooperation (TC) programmes to enhance the capacity of the client MSMEs.

In 2013, EBRD had total assets of EUR 49 billion (USD 65 billion) and invested a total of EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries.

By Ananya Tiwari, Research Associate

About the European Bank for Reconstruction and Development (EBRD)
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries.

Sources and Additional Resources

[1] EBRD Press Release, http://www.ebrd.com/pages/project/psd/2014/45566.shtml

MicroCapital, November 10, 2014, “European Bank for Reconstruction and Development (EBRD) Considers $31m Investment in Green for Growth Fund (GGF) for Energy-Efficiency Financing” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-considers-31m-investment-in-green-for-growth-fund-ggf-for-energy-efficiency-financing/

MicroCapital, October 29, 2014, “European Bank for Reconstruction and Development (EBRD), Turkish Government Launch “Finance and Advice to Women in Business” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-turkish-government-launch-finance-and-advice-to-women-in-business/

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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