Project description

Non-revolving loan facility

Project objectives:

Providing a non-revolving loan facility of up to $5,000,000 under a SME support programme for the Bank’s member states.
The project aligns with the Rules for Providing Targeted Loan Facilities to Financial Institutions approved by the EDB Management Board on 31 October 2014 (Minutes 336)

Sustainable development and market economy development effects:

·         The project holds the potential to enhance the Kyrgyz Republic’s financial system. It will promote banking activities, including business lending, and the expansion of the borrower’s customer base, facilitating development in the real sector. Subprojects will primarily focus on agribusiness development, which is one of the Kyrgyz Republic’s economic priorities. In addition, subprojects could involve investments in other priority sectors.

·         The project finances the working capital of sub-borrowers operating in the trade sector, up to 50% of the trade financing amount.

·         The project provides a non-revolving loan facility to support small and medium-sized enterprises in the Kyrgyz Republic. Given the structural specifics of the Kyrgyz economy, supporting small and medium-sized businesses is an effective pathway towards the nation’s sustainable development.

The project funds sub-projects that facilitate the acquisition, renovation, expansion and modernisation of fixed assets and other long-term investments made by the borrower’s clients.

Aiyl Bank