The Asian Development Bank (ADB), a multilateral development finance institution, recently agreed to lend USD 15 million to KazMicroFinance (KMF), a microlender in Kazakhstan. The loan is intended to boost its services to micro-, small and medium-sized enterprises (MSMEs) – especially in rural areas – to “improve financial inclusion and contribute to Kazakhstan’s recovery from the COVID-19 pandemic.”
KMF was founded in 2006 as a for-profit entity by the nonprofit Kazakhstan Loan Fund, which was launched in 1997. In addition to extending financial services to MSMEs, KMF provides group loans, vehicle loans and funding for environmental technologies. The institution has 111 service locations in 17 cities and reports total assets of USD 116 million as of 2022.
Established in 1966, ADB is a development finance institution headquartered in the Philippines. Its mission is to help its 68 member countries reduce poverty and otherwise improve the quality of life of Asia’s citizens. During 2021, ADB issued commitments of USD 22.8 billion, ending the year with total assets of USD 93 billion.
By Hasnat Aslam, Research Associate
Sources and Additional Resources
ADB press release
https://www.adb.org/news/adb-and-kmf-sign-15-million-loan-improve-access-finance-msmes-kazakhstan
KMF homepage
https://kmf.kz
ADB homepage
https://www.adb.org
KFM 2021 financial statement
https://kmf.kz/en/godovye-otchety/
Previous MicroCapital story on KMF
https://www.microcapital.org/microcapital-brief-invest-in-visions-iiv-mikrofinanzfonds-lends-6-5m-to-kmf-for-microfinance-in-kazakhstan/
Previous MicroCapital story on ADB
https://www.microcapital.org/microcapital-brief-louis-dreyfus-company-borrowing-100m-from-adb-to-on-lend-to-small-scale-farmers-to-boost-climate-resilience-covid-19-recovery/
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