EDB to provide US $5 million to Aiyl Bank to develop microlending in Kyrgyzstan
Almaty, 28 November 2014. Today Eurasian Development Bank (EDB) and Aiyl Bank signed an agreement today to finance a microcredit programme in Kyrgyzstan. A US $5 million loan will be provided as a one-off tranche for three years. The agreement was signed by Dmitry Krasilnikov, Deputy Chairman of the Management Board at EDB, and Erkin Asrandiyev, Chairman of the Management Board at Aiyl Bank.
Aiyl Bank will select sub-borrowers on its own using the criteria approved by EDB and provide them targeted sub-loans for business development. Sub-loans for a total between US $1,000 and US $200,000 will be extended for up to 36 months.
“For the Kyrgyz Republic supporting micro and small-sized businesses is one of the effective instruments to revitalise the country’s economy,” says Dmitry Krasilnikov. “The project launched by EDB and Aiyl Bank will help to create favourable conditions for the sustainable development of business, trade and competition and thereby promote increases in production, the range of products and services, and improvements in their quality. Therefore, the provision of support to micro and small-sized businesses will help to achieve significant effects in advancing the country’s market economy.”
Finance is provided in the framework of EDB’s Programme for Microfinance Support through the Provision of Targeted Loan Facilities to Financial Institutions.
In December 2013, EDB provided US $5 million to Halyk Bank Kyrgyzstan under the same programme.
Additional Information
Aiyl Bank was established as the successor of the Kyrgyz Agricultural Finance Corporation. The only shareholder in the Bank is the Government of the Kyrgyz Republic represented by the Ministry of State Property. The Bank provides all traditional banking services, however loans to agricultural producers remain its key business.
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://www.eabr.org.