BISHKEK (TCA) — Eurasian Development Bank (EDB) says it has opened a credit line of US $5 million to Halyk Bank Kyrgyzstan OJSC. The agreement was signed on 2 September by Dmitry Ladikov-Roev, Managing Director, Asset and Liability Management, EDB, and Kastoru Mamytova, Board Chairman, Halyk Bank Kyrgyzstan.
The funds are provided under the EDB Microfinance Support Programme by opening earmarked credit lines to financial institutions. Halyk Bank Kyrgyzstan OJSC will independently select its sub-borrowers – individual entrepreneurs and companies meeting EDB’s criteria. Under the terms and conditions of the agreement, funds can be provided in US dollars and roubles.
If implemented, the joint EDB-Halyk Bank Kyrgyzstan project will help establish a favourable environment for sustainable micro and small business development in the Kyrgyz Republic, strengthen the competition, and thus boost output growth, ensure expansion of the line of goods and services and their better quality. The micro and small business support will therefore contribute to the development of a market economy in Kyrgyzstan.
The new agreement furthers the successful cooperation of the two financial institutions. Back in 2013, a similar agreement was signed for the amount of US $5 million. The funds were used to finance over 400 micro and small businesses that helped maintain existing jobs in Kyrgyzstan and expand the output.
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, Kyrgyzstan, Russia, and Tajikistan.
Halyk Bank Kyrgyzstan is part of the Financial Group of Halyk Bank of Kazakhstan – Halyk Group. It was founded after acquisition of 100 percent of shares of Kairat Bank OJSC by one of the leaders of the banking market of Kazakhstan – Halyk Bank of Kazakhstan JSC – in 2004. The bank’s head office is located in Bishkek, it also has four branches in Bishkek and one in each of the cities of Osh, Jalal-Abad, Kara-Suu, Kara-Balta, and Cholpon-Ata, as well as savings banks in Bishkek, Osh, Jalal-Abad, and Uzgen.