MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $3m to Mol Bulak Finance of the Kyrgyz Republic for On-Lending to Small and Medium Enterprises (SMEs)

The European Bank for Reconstruction and Development (EBRD), a development finance institution headquartered in London, has agreed to provide a loan of approximately KGS 142 million (USD 3 million) to Mol Bulak Finance, a non-bank microfinance institution, to support small and medium enterprises (SMEs) in the Kyrgyz Republic. The loan will be extended in the local currency, the Kyrgyz Som, in order to protect retail end borrowers from foreign exchange risk.  EBRD expects the three-year senior loan to increase access to finance for entrepreneurs in the country’s rural areas [1].  As of 2009, Mol Bulak had USD 14.8 million in total assets, a gross loan portfolio of USD 10.9 million and approximately 28,000 borrowers with an average loan balance of USD 393 per borrower.

About European Bank for Reconstruction and Development (EBRD): EBRD is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. 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). Operating assets for fiscal 2009 were EUR 6.1 billion (USD 8 billion).

About Mol Bulak Finance (MBF): MBF is a non-bank financial institution (NBFI) that was established in 2005 in Kyrgyzstan.  The NBFI’s mission is to provide flexible and fast financial solutions to those in need.  It provides group and individual loans to help start and develop small enterprises.  In 2009, MBF reported to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, a gross loan portfolio (GLP) of USD 10.9 million, total assets of USD 14.8 million, approximately 28,000 borrowers, return on assets of 2.71 percent and return on equity of 20.14 percent.

[1] Sergiy Grytsenko.  “EBRD Continues to Support Private Enterprises in the Kyrgyz Republic” http://www.ebrd.com/pages/news/press/2010/101229.shtml

MicroCapital’s Microfinance 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

MicroCapital’s Microfinance Universe Profile: Mol Bulak Finance
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mol+Bulak+Finance

MicroCapital.org Article, December 30, 2010: European Bank for Reconstruction and Development (EBRD) Loans $90m to Patria Credit of Romania and Orient Express of Russia for Microfinance and Small Business Lending, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-90m-to-patria-credit-of-romania-and-orient-express-of-russia-for-microfinance-and-small-business-lending/

MicroCapital.org Article, June 18, 2010: Bai Tushum & Partners and Mol Bulak, Two Microfinance Organizations, Launch Revival Foundation for Devastated Regions of Kyrgyzstan, https://www.microcapital.org/microcapital-brief-bai-tushum-partners-and-mol-bulak-two-microfinance-organizations-launch-revival-foundation-for-devastated-regions-of-kyrgyzstan/

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

Similar Posts: