MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Promoting External Advice for Small and Medium-Sized Enterprises (SMEs) in Kyrgyzstan

The European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, has launched an information campaign to increase awareness of “the value of external advice for small and medium-sized enterprises (SMEs)”[1] in Kyrgyzstan.The aim of the campaign is to encourage local SMEs to seek external advice on practices of performance management and cash flow management as well as on sources of potential funding in order to contribute to their commercial and business success.

According to a statement attributed to Mr Phil Bennett, EBRD’s First Vice President, “small and medium-sized businesses will be one of the key priorities of EBRD’s new country strategy for Kyrgyzstan”[1]. Mr Bennett added that “the bank is already deeply committed to SMEs in Kyrgyzstan, working to increase access to finance through local banks and microfinance institutions, and to help SMEs gain access to expert advice”[1].

The information campaign in Kyrgyzstan will be funded by EBRD’s Shareholder Special Fund as well as through donor funding from the governments of Switzerland, Japan and the United States. EBRD plans to launch similar information campaigns in 25 unspecified countries in Central Asia, North Africa, and Eastern and Southern Europe in the future.

EBRD provides loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs) in Eastern Europe, Central Asia and North Africa. In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries. In Kyrgyzstan, EBRD’s portfolio includes 51 projects with total value of EUR 230 million (USD 312 million) as of 2014.

By Alíz Crowley, Research Associate

About 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 across 34 countries.

Sources and Additional Resources

[1] AzerNews, July 2014, EBRD launches new information campaign in Kyrgyzstan

[2] EBRD, July 2014, EBRD focus on SMEs in Kyrgyz Republic starts with know-how

MicroCapital, July 20, 2014, European Bank for Reconstruction and Development (EBRD) Loans Kyrgyz Investment and Credit Bank (KICB) $5m; Demir Kyrgyz International Bank (DKIB) $4m for On-lending to Fund Energy Efficiency Improvement Projects

MicroCapital, July 3, 2014, European Bank for Reconstruction and Development (EBRD), International Cooperation and Development Fund of Taiwan (TaiwanICDF) Loan Tunisie Leasing $14m to Fund Micro-, Small, Medium-sized Enterprises (MSMEs) in Tunisia

MicroCapital, July 2, 2014, European Bank for Reconstruction and Development (EBRD) Likely to Loan Mongolian XacBank $5m for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs); $10m for Sustainable Energy

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)

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