The European Bank for Reconstruction and Development (EBRD), a development finance institution, has agreed to make a three-year, local-currency loan of KGS 270 million (USD 6 million) to Bai Tushum and Partners, a non-banking microfinance institution (MFI) operating in the Kyrgyz Republic. Bai Tushum will use the funding to expand its loan portfolio, with a specific focus on increasing the MFI’s credit program for agricultural microenterprises.
The loan to Bai Tushum is the first investment in the Kyrgyz Republic under the EBRD’s Local Currency Lending Programme in Early Transition Countries (ETC) that aims to minimize foreign currency risk in Armenia, Azerbaijan, Belarus, Georgia, Moldova, Mongolia, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan.
According to the US-based nonprofit Microfinance Information Exchange, as of December 31, 2010, Bai Tushum reported total assets of USD 59 million, a gross loan portfolio of USD 38.5 million, return on assets (ROA) of 4.48 percent, return on equity (ROE) of 21.9 percent and 29,600 active borrowers.
By Rohan Trivedi, Research Associate
About Bai Tushum and Partners:
Bai Tushum and Partners is a microfinance institution (MFI) based in the Kyrgyz Republic. It was founded in 2000 as a subsidiary of Bai Tushum Micro Credit Agency, before transforming into an independent MFI in 2009. Bai Tushum’s products include agriloans; trade, service, and production loans; mortgage loans; consumer loans; and financing equipment. According to the US-based nonprofit Microfinance Information Exchange, as of December 31, 2010, Bai Tushum reported total assets of USD 59 million, a gross loan portfolio of USD 38.5 million, return on assets (ROA) of 4.48 percent, return on equity (ROE) of 21.9 percent and 29,600 active borrowers.
About The European Bank for Reconstruction and Development (EBRD):
The European Bank for Reconstruction and Development (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). For the 2010 fiscal year, EBRD made total commitments of EUR 9 billion (USD 11.5 billion) to 386 projects and reported a net profit of EUR 1.2 billion (USD 1.5 billion).
Sources and Additional Resources:
[1] Press Release submitted by the European Bank for Reconstruction and Development (EBRD) to MicroCapital, July 2011.
MicroCapital.org story, June 21, 2011: “MICROCAPITAL BRIEF: Microfinance Expands in Rural Kyrgyzstan as Lending Shifts to Agriculture”, https://www.microcapital.org/microcapital-brief-microfinance-expands-in-rural-kyrgyzstan-as-lending-shifts-to-agriculture/
MicroCapital.org story, August 4, 2010: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Provides $1.5m Loan to Bai-Tushum to Support Micro- and Small Enterprises in Kyrgyz Republic”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-provides-1-5m-loan-to-bai-tushum-to-support-micro-and-small-enterprises-in-kyrgyz-republic/
MicroCapital.org story, June 18, 2010: “MICROCAPITAL BRIEF: 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/
MicroCapital Universe Profile: Bai Tushum and Partners, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bai+Tushum+and+Partners
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
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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