The European Bank for Reconstruction and Development (EBRD) is providing a loan of US$5 million to to help hundreds of small businesses in the modernise production, increase efficiency and address pressing environmental issues, such as water stress, soil erosion and degradation.
Kompanion Bank, an EBRD client since 2007, is the first domestic financial institution to join (KyrSEFF III), which promotes green and sustainable lending and which was recently approved by the EBRD.
The EBRD’s loan will help to finance energy and water efficiency projects, particularly in the agriculture, residential and micro, small and medium-sized enterprises (MSME) sectors. Sub-loans will be offered in Kyrgyz som to avoid foreign exchange-related risks.
Potential borrowers will have access to energy-saving technologies available through the online on the KyrSEFF III website. The Selector also helps local businesses find approved producers and vendors of eligible materials and equipment.
Kompanion Bank, the largest MSME lender in the country, will benefit from technical assistance and co-investment grants provided under KyrSEFF III.
To date, the EBRD has invested €879 million through 221 projects in the Kyrgyz Republic, with most of its funds going to support private entrepreneurship.