Project description

Revolving loan facility

Project objectives:

Providing a US $8 million revolving loan facility to Aiyl Bank (Kyrgyz Republic) to facilitate the implementation of its agribusiness support programme by financing eligible agribusiness subprojects initiated by sub-borrowers

Integration effect:

·         The project promotes mutual investments.

Sustainable development effect:

·         The project is expected to aid the country in achieving its economic growth targets by boosting outputs, creating jobs and increasing tax revenues.

·         The Bank’s funding may be used to finance investment costs and working capital; the share of working capital financing may reach 100% of the limit. By financing subprojects that implement investment initiatives, the project aligns with the EDB’s priorities outlined in its 2022–2026 Country Strategy for the Kyrgyz Republic.

Alignment with the complementarity and investment mobilisation principles:

·         The project conforms to the principle of complementarity. The Bank provides financing that is not readily accessible in the market.

·         The project finances subprojects that usually envision implementation by the sub-borrowers themselves.

The project holds strategic importance in achieving the Kyrgyz Republic’s government objectives.
Aiyl Bank