Bishkek, Kyrgyz Republic, August 12,
2008 – IFC, a member of the World Bank Group, has signed a loan agreement
with the Kyrgyz Investment and Credit Bank to expand its micro, small,
and medium enterprise lending operations in less developed areas of the
Kyrgyz Republic. IFC’s $5 million loan will also finance projects in agriculture
The loan will create financing options for underserved markets in the Kyrgyz
economy, especially in remote cities and towns. Increasing access
to finance in these areas is crucial for sustainable development of the
country’s private sector, as well as for improving economic development
and reducing poverty.
Kwang-Young Choi, CEO of the Kyrgyz Investment and Credit Bank, said, “Since
its establishment, our bank has achieved good results in building a strong
credit portfolio. With this loan from IFC, we will be able to further
support sustainable private sector development,” he said.
Lars Thunell, IFC Executive Vice President and CEO, said at the signing,
“IFC is partnering with Kyrgyz banks to develop the country’s microfinance
industry and expand access to credit for micro, small, and medium businesses.
This will help the bank diversify its loan portfolio and grow stronger,
while at the same time creating opportunities for people to grow their
IFC is a shareholder in the Kyrgyz Investment and Credit Bank with an equity
stake of 17 percent. Other stakeholders include the Aga Khan Fund for Economic
Development, Habib Bank Limited, Germany’s DEG and KfW, the European Bank
for Reconstruction and Development, and the Kyrgyz government.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC's vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.