EDB and Russian-Kyrgyz Development Fund sign cooperation agreement

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BISHKEK (TCA) — Eurasian Development Bank (EDB) and the Russian-Kyrgyz Development Fund (RKDF) this week signed a framework cooperation agreement in Bishkek. The signatories were Serik Primbetov, Director of the EDB Representative Office in Bishkek, and Kubanychbek Kulmatov, Chairman of the RKDF Management Board, the EDB Media Centre said.

The parties intend to advance cooperation by financing jointly investment projects in the transport sector, mining, metallurgy, agriculture, and infrastructure development.

The agreement envisions that the parties will jointly select projects, share country and sector research data, and cooperate in other areas relating to joint project finance.

“The signature of the framework cooperation agreement means that the two financial institutions will deepen cooperation in the investment sphere,” Serik Primbetov said. “We are ready to develop long-term, mutually beneficial relationships with the RKDF. I am convinced that the document we signed today will soon become the basis for launching mutually beneficial projects and programmes.”

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 the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.

The Russian-Kyrgyz Development Fund was established in accordance with intergovernmental agreements signed in 2014. The Fund is based in Bishkek, and its Board includes three representatives of Kyrgyzstan and two of Russia.

The Fund aims to help the Kyrgyz economy to adapt to the Eurasian Economic Union and implement investment projects in Kyrgyzstan. The Fund finances projects on favorable terms providing preferential loans. The Fund does not lend to the Government of Kyrgyzstan as a sovereign borrower, but works with market participants including businesses and private enterprises. The Fund’s authorized capital is $500 million.

In 2015, the RKDF launched a program to finance small and medium-sized enterprises with the focus on agriculture, garment, textile and manufacturing industries.

Sergey Kwan

TCA