by the MicroCapital Team - Deals, Eastern Europe and Central Asia, Key Players, Transparency -

European Bank for Reconstruction and Development Makes $2 Million Investment in Kyrgyzstani Microfinance Institution Bai Tushum

Bai Tushum, a Kyrgyzstan microfinance institution (MFI), was recently provided with a $2 million loan from the European Bank for Reconstruction and Development (EBRD)—the “largest single investor in the region” between central Europe and central Asia. Member countries, the European Community, and the European Investment Bank own the EBRD, which has “subscribed capital totaling å¥20 billion.” The bank finances its loans by borrowing funds in international capital markets, and subsequently providing loans to public and private enterprises including banks, industries, and businesses. In 2004, the EBRD had invested over $1.37 billion in financial institutions supporting local enterprises.

In 2003, loan recipient Bai Tushum received an “A” rating for financial and economic performance standards designed by the World Bank’s microfinance unit (CGAP). The Microfinance Centre for Central and Eastern Europe and the New Independent States, states that as of 2004 there were 11 Kyrgyz MFIs; and Bai Tushum was the first MFI in the country to receive such a rating. Since its inception in 2000, Bai Tushum’s loan portfolio has grown from approximately $646,500 to $4.717 million in July 2005, and its total assets have increased from close to $1 million to $6.385 million. Bai Tushum directs its financial services to farmers and small and medium size entrepreneurs.

Additional Resources

1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “About the EBRD.”
3) “About the EBRD: Ownership and Funding.”
4) “USAID Success Stories Archive: USAID Supported Microfinance Insitution First in Kyrgyzstan to Receive ‘A’ Rating.”
5) MIX Market: “Bai Tushum: Financial Information.”
6) MIX Market: “Bai Tushum: General Information.”
7) “EBRD: Annual Report 2004.”
8) “MFC Spotlight 12: Overview of the Microfinance Industry in the ECA Region in 2003.”

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