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On December 15, 2016, more than 50 businessmen operating in various sectors of the economy took part in the seminar “Financial solutions for Kyrgyz companies planning to invest in modern technologies.” During the seminar, two programs were presented by the European Bank for Reconstruction and Development: the Kyrgyz Sustainable Energy Financing Facility KyrSEFF+ and the Trade Facilitation Program (and its new Green TFP marketing initiative). The seminar was held jointly with the Chamber of Commerce and Industry of the Kyrgyz Republic.
In his welcoming speech, Nurlan Musuraliev – Vice President of the Chamber of Commerce and Industry of the Kyrgyz Republic (CCI KR) – elaborated on the reasons to use green technologies for businesses. “In the face of rising energy prices, businesses should be far-sighted and start implementing energy-saving projects. Kyrgyzstan has all the prerequisites for the promotion of renewable energy equipment (RES), the legislative base and effective financial mechanisms. And we – as a body promoting the interests of business – stand for the “green” development of the economy, without hurting the environment”.
At the same time, financial opportunities within the framework of the KyrSEFF+ program were described by N. Musuraliev as the most attractive and providing a quick pay-back due to saving costs on resources. The CCI of the Kyrgyz Republic also participates in the KyrSEFF program. Then, with the investment support of the program in the amount of more than 16 thousand US dollars, energy efficient windows were installed in the Chamber building, in accordance with the quality of KyrSEFF requirements. For the implementation of the project, the Chamber received a grant of 1500 US dollars and today fully profits of the results of the investment.
Moreover, presenting new opportunities of the KyrSEFF+ program, Bakyt Askarbekov, financial expert, said. “With the launch of the second phase, we increased the amount of business investment to USD 2 million, along with the expanded range of financed technologies. KyrSEFF+ team can be contacted for investment assistance by those wishing to modernize old agricultural equipment, water treatment facilities, waste recycling systems, as well as entrepreneurs interested in resource and energy saving”, B. Askarbekov said.
The presentation of KyrSEFF+ triggered many questions from entrepreneurs. Among the participants of the business meeting were some of KyrSEFF+ customers, who modernized the energy intensive equipment and are already benefiting from the implemented measures. These are such companies as Avangard Style, Ayu Grand Comfort, Greenline and others. During the talks, they shared their experience with their peers and talked about the problems they face in the course of importing green technologies related to possible financial risks. And in this issue, was introduced very helpful information about another program of the EBRD – the Trade Promotion Program and its new marketing initiative “Green TFP”, designed to help local banks to offer a financing package to suppliers and consumers of green technologies and services.
“Our new marketing initiative will help to stimulate the development of international trade in green technologies and services. The use of short-term trade finance instruments such as letters of credit and guarantees for the purchase of high-performance technologies under the EBRD’s Trade Facilitation Program, combined with medium – or long-term funding under the KyrSEFF+ program, will help Kyrgyz companies to minimize the risks associated with international trade, obtain better payment terms, as well as optimize costs. Suppliers can get profitable financing to import green technologies and implement them in Kyrgyzstan. With the use of trade fixing tools, they can also become an official supplier of the KyrSEFF+ program. Our local partner banks will be happy to help Kyrgyz companies in structuring and financing foreign trade transactions, “concluded Maria Mogilnaya, the banker of the EBRD’s Trade Facilitation Program.
Representatives of KyrSEFF+ partner banks and the EBRD’s Trade Facilitation Program: Bank of Asia, Bank Bai Tushum, Kompanion Bank and Kyrgyz Investment and Credit Bank (KICB) participated in the seminar, which presented interest rates, the cost of trade finance instruments and procedures to obtain loans under KyrSEFF+.
The workshop ended with networking opportunities in an informal atmosphere. All parties had the opportunity to exchange contacts and agree on meetings for a more detailed discussion on possible cooperation.