BISHKEK (TCA) — The Chief Executive Officer of the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IDB) Group, Mr. Khaled Al-Aboodi, and the Chief Executive Officer of Kyrgyzstan’s Micro-Credit Company Mol Bulak Finance, Mr. Babyrzhan Tolbaev, signed a line of financing agreement for a USD 10 million facility in Istanbul, the ICD said on November 26.
The USD 10 million Shari’ah compliant Line of Financing facility will be utilized by Mol Bulak to provide financial support to micro-entrepreneurs in Kyrgyzstan through Islamic modes of financing.
On this occasion, Mr. Khaled Al Aboodi commented: “The financial support to micro-entrepreneurs in Kyrgyzstan will contribute to poverty reduction, increase level of employment, and assist in the development of entrepreneurship and social mobilization in the country. Also, the Line facility will support the growth of Mol Bulak’s Islamic Window operations and portfolio.”
Mr. Babyrzhan Tolbaev added: “Today, we are making a history in developing Islamic microfinance not only in Kyrgyzstan, but in the whole region of the CIS countries. Mol Bulak is prepared to take on a new level of leadership and responsibility to promote Islamic principles in this region. We believe Islamic microfinance will create multiple opportunities to the population of these countries towards the growth, sustainable development and prosperity.”
ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Shari’ah.
Mol Bulak Finance was established in the Kyrgyz Republic in 2005 as a Limited Liability Company for micro-lending purposes and is regulated under the National Bank of Kyrgyz Republic. The mission of the company is to contribute to poverty reduction, increase level of employment, and assist in the development of entrepreneurship and social mobilization of the population. Today the company operates through 112 offices in Kyrgyzstan and serves more than 130,000 clients all over the country.