EDB: Share of Local Currency Financing in Development Bank Operations in Eurasia Rises to 30% over the Last Ten Years
Almaty, 28 October 2026 — The Eurasian Development Bank (EDB) has published a new analytical brief on local currency financing in Eurasia. From 2015 to 2025, annual local currency financing by multilateral development banks (MDBs) in the region increased fivefold, from $0.4 billion to $2.3 billion. Over the same period, the share of local currency projects in MDB operations rose from 11% to 30%.
The brief examines the structure of local currency financing, the factors driving and constraining its growth, and measures to expand its use.
Key findings:
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Growth and diversification. Kazakhstan remains the largest market by investment volume. MDB operations in local currencies have also grown rapidly in Georgia, Uzbekistan and Kyrgyzstan.
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Leading investors. EDB, EBRD and IFC accounted for 85% of MDB local currency financing in the region in 2025. Over the past ten years, EDB provided the largest cumulative volume among MDBs, exceeding $5 billion in equivalent terms. Its share of the regional total rose from 4% to 35%.
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Main recipient sectors. The financial sector accounted for 54% of local currency financing in 2025 and the first half of 2026. The key channel is funding provided to commercial banks for onlending to small and medium-sized enterprises.
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Barriers to growth. Relatively high inflation and limited development of domestic financial markets are among the main barriers. These conditions are associated with short maturities, low liquidity and a shortage of long-term funding.
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Global context. Local currency financing has become part of the MDB reform agenda. The G20 has called for an expansion of such financing and the development of hedging instruments.
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Measures for the region. The brief proposes expanding local currency bond issuance, supporting domestic financial markets, developing hedging instruments and mobilising private investment in local currencies.
The full brief is available on the EDB website.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For 20 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. By the end of June 2026, the EDB’s cumulative portfolio comprised 348 projects with a total investment of $22.1 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB is implementing three mega-projects as part of its 2022–2026 Strategy: the Eurasian Transport Network, the Eurasian Commodity Distribution Network and the Central Asian Water and Energy Complex.
The EDB Media Centre:
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