Source: International Finance Corporation (IFC).

Original press release available here.

BISHKEK, KYRGYZ REPUBLIC, August 12 – International Finance Corporation (IFC), a member of the World Bank Group, has signed a loan agreement with the Kyrgyz Investment and Credit Bank to expand its micro, small, and medium enterprise lending operations in less developed areas of the Kyrgyz Republic. IFC’s USD 5 million loan will also finance projects in agriculture sector.

The loan will create financing options for underserved markets in the Kyrgyz economy, especially in remote cities and towns. Increasing access to finance in these areas is crucial for sustainable development of the country’s private sector, as well as for improving economic development and reducing poverty.

Kwang-Young Choi, CEO of the Kyrgyz Investment and Credit Bank, said, “Since its establishment, our bank has achieved good results in building a strong credit portfolio. With this loan from IFC, we will be able to further support sustainable private sector development,” he said.

Lars Thunell, IFC Executive Vice President and CEO, said at the signing, “IFC is partnering with Kyrgyz banks to develop the country’s microfinance industry and expand access to credit for micro, small, and medium businesses. This will help the bank diversify its loan portfolio and grow stronger, while at the same time creating opportunities for people to grow their businesses.”

IFC is a shareholder in the Kyrgyz Investment and Credit Bank with an equity stake of 17 percent. Other stakeholders include the Aga Khan Fund for Economic Development, Habib Bank Limited, Germany’s DEG, and KfW, the European Bank for Reconstruction and Development, and the Kyrgyz government.