MICROCAPITAL BRIEF: European Union (EU), European Bank for Reconstruction and Development (EBRD) to Extend Small Business Initiative to Turkmenistan

The European Union (EU) and the European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, have announced the extension of the Small Business Initiative, a program that provides loans and technical assistance to support small and medium-sized enterprises (SMEs), to Turkmenistan. The three-year effort is slated to offer “business advice” [1] to 100 SMEs with the aim of increasing their competitiveness and increasing their access to funding. The program includes a grant of EUR 2.5 million (USD 2.8 million) from the European Union that will be disbursed from its Investment Facility for Central Asia (IFCA), a fund that offers non-refundable funding in Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. EBRD’s contribution to the initiative is unspecified.

Masaru Honma, EBRD’s Director for Central Asia, said that “this program is part of an ongoing commitment from the EBRD and the European Union to support SME development in Turkmenistan. Providing small businesses with the tools they need to become more competitive, innovate and grow is important for the sustainable development of the private sector in the country”[1].

EBRD invested EUR 8.9 billion (approximately USD 10.1 billion) in 377 projects in 34 countries during 2014, and as of December of that year, it reported total members’ equity of EUR 14.2 billion (approximately USD 16.1 billion). In Turkmenistan, EBRD has invested approximately EUR 206 million (USD 231 million) between 1997 and 2015.

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 is owned by 64 countries as well as the European Investment Bank and the European Union as of 2015. 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). EBRD invested EUR 8.9 billion (approximately USD 10.1 billion) in 377 projects in 34 countries during 2014, and as of December of that year, it reported total members’ equity of EUR 14.2 billion (approximately USD 16.1 billion).

[1] European Bank for Reconstruction and Development (EBRD), EBRD and EU boost support for SMEs in Turkmenistan

[2] European Bank for Reconstruction and Development (EBRD), The EBRD in Turkmenistan

[3] European Investment Bank, Technical Assistance and Grants, The EU Investment Facility for Central Asia (IFCA)

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

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: