The UK-based European Bank for Reconstruction and Development (EBRD), a multilateral institution that finances development projects, recently provided a local-currency loan equivalent to USD 1.5 million to First MicroCredit Company (FMCC), a Kyrgyz microfinance institution, to support on-lending to its micro-, small and medium-sized enterprise (MSME) customers, especially those in the agricultural sector. The loan will be issued in the Kyrgyzstani som to avoid foreign exchange risk and aid business development during poor economic times. Further information on the loan has not been released.
As of 2012, FMCC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 12.4 million, a gross loan portfolio of USD 11.8 million and 16,500 borrowers. FMCC does not accept deposits. In the same year, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries. As of 2013, EBRD has invested USD 565 million in the Kyrgyz Republic since 1993.
By Adrija Vaiciulionis, Research Associate
About European Bank for Reconstruction and Development:
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries 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 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.
About the First MicroCredit Company:
The First MicroCredit Company (FMCC) is a microfinance institution based in the Kyrgyz Repblic. FMCC was established in October 2006 and has been operating as a credit company with the Aga Khan Agency for Microfinance as the sole owner. As of 2012, FMCC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 12.4 million, a gross loan portfolio of USD 11.8 million and 16,500 borrowers. FMCC does not accept deposits.
Sources and Additional Resources:
Svitlana Pyrkalo, “First Microcredit Gets EBRD Loan in Kyrgyz Som Equivalent to US $1.5M,”
http://www.ebrd.com/pages/news/press/2013/130927.shtml
MicroCapital Article, September 22, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Establishes $2m Local Currency Credit Line for Bank of Asia,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-establishes-2m-local-currency-credit-line-for-bank-of-asia/
MicroCapital Article, November 14, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Lends $70m to Garanti Bank of Turkey, Hipotekarna Banka of Montenegro, Bai Tushum of Kyrgyz Republic,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-lends-70m-to-garanti-bank-of-turkey-hipotekarna-banka-of-montenegro-bai-tushum-of-kyrgyz-republic-2/
MicroCapital Universe Profile: First MicroCredit Company (FMCC):
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=First+MicroCredit+Company
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD):
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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