EDB signs an agreement with Aiyl Bank to finance SMEs in Kyrgyzstan

agr_cooperative-283

BISHKEK (TCA) — The Eurasian Development Bank (EDB) and Kyrgyzstan’s Aiyl Bank have entered into a US $10 million framework agreement to finance SME projects. The document was signed on October 11 by Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities at the EDB, and Murat Akimov, Chairman of the Board at Aiyl Bank.

The agreement extends a revolving targeted loan facility to the borrower. The loan may be disbursed in the US dollars, Russian roubles, euro, Kyrgyz som, and Kazakh tenge.

“Supporting small and medium-sized businesses is an effective instrument that contributes to the sustainable economic development of the country where micro, small and medium-sized businesses play an important part, including in terms of employment and overall social stability,” commented Dmitry Ladikov-Roev.

In 2014 and 2017, the EDB provided loan facilities to Aiyl Bank for a total of US $10 million under the programme to support SMEs in the Kyrgyz Republic. The project financed over 400 micro and small businesses, helping to maintain employment and enhance production rates in the country.

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. The EDB’s charter capital totals US $7 billion. The member states of the Bank are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan.

Aiyl Bank is a major state-owned bank in Kyrgyzstan supporting the agrarian sector and providing the full range of banking services.

Sergey Kwan

TCA