BISHKEK (TCA) — In Q3 2017, multilateral development banks (MDBs) approved CIS project financing for a total of US$ 1.5 billion, including 60% of sovereign funding and 40% of private sector funding, according to Eurasian Development Bank’s (EDB) Analytical Review. In Q3 2017, investment project financing originated by MDBs in the CIS private sector decreased 1.6 times quarter-on-quarter to US$ 613 million. Four MDBs (EDB, EBRD, BSTDB, EIB) approved funding for 18 projects. The EDB accounts for the bulk of newly approved funding (US$ 365 million, or 60%) which will be used to finance 6 projects.
The review focuses on Q3 2017 financing approved by multilateral development banks (MDBs) for CIS countries, including Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
The largest share of MDB approved and signed private sector projects is attributable to Russia (48%, three projects) and Kazakhstan (32%, four projects). The EDB has become the largest investor in Russia and Kazakhstan, with three and two projects, respectively. In Ukraine, three projects were approved and signed for a total of US$ 62 million (10%). In Moldova (6%), total funding amounted to US$ 34 million (two projects). One US$ 10 million project was signed in Armenia (2%).
WB Group members – IBRD and IDA, ADB, IDB, EBRD, NDB – approved financing for 12 projects, including special sovereign loans to governments, technical assistance and grants with a total funding amount of US$ 925 million.
In Q3 2017, the largest share of sovereign funding went to the public governance sector (57%), where total investments amounted to US$ 531 million.
Russia was the largest recipient of MDB sovereign funding in the CIS in the form of a US$ 460 million NDB credit (50% of total funding) to finance a judicial system improvement project. In Turkmenistan (29%), investments are represented by an IDB telecommunication loan. In Belarus (13%), the bulk of funding is represented by WB Group and EBRD loans to the financial sector (US$ 60 million and US$ 59 million, respectively). In Tajikistan (5%), WB Group extended a US$ 50 million loan to finance a public governance project.
The review is prepared on the basis of information published on official web sites of international financial institutions: the Asian Development Bank (ADB), the Eurasian Development Bank (EDB), the Eurasian Stabilization and Development Fund (ESDF), the European Bank for Reconstruction and Development (EBRD), the Black Sea Trade and Development Bank (BSTDB), the European Investment Bank (EIB), the Islamic Development Bank (IDB), the Nordic Investment Bank (NIB), the Asian Infrastructure Investment Bank (AIIB), the International Investment Bank (IIB), the International Economic Cooperation Bank (IECB), the New Development Bank (NDB), and the World Bank Group which consists of the International Finance Corporation (IFC), the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
Eurasian Development Bank (EDB) 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. EDB’s charter capital totals US $7 billion. The member states of the Bank are Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan.
