WASHINGTON, D.C., October 12, 1999 —
The International Finance Corporation is providing loans of up to US$15
million to Bank TuranAlem and up to $2.5 million to Kazkommertsbank, the
two largest private banks in Kazakhstan.
TuranAlem, formerly a state-owned bank, was sold to a group of private
investors early last year and is now seen as a model of successful bank
privatization. IFC's loan will strengthen the bank's funding base and improve
its liquidity position. The bank lends to private companies across a range
of sectors in Kazakhstan and will use a significant portion of IFC's loan
to target small and medium enterprises (SMEs). Kazkommertsbank, the largest
bank in Kazakhstan and an IFC client since 1997, will also use the IFC
loan to provide financing to SMEs that meet World Bank Group environmental
Mr. Khosrow Zamani, IFC's Deputy Director for Central Asia, said that the
project demonstrates IFC's confidence in both banks as well as Bank TuranAlem's
successful privatization efforts. He added that IFC supports the development
of a strong financial sector, which is crucial to the growth of the private
sector in Kazakhstan.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
and provides technical assistance and advice to governments and businesses.