Bishkek, Kyrgyz Republic, October 11,
2007 — IFC, a member of the World Bank Group, signed an agreement
yesterday, to provide financing of $4 million to the Kyrgyz Investment
and Credit Bank, a closed joint-stock company, which will enable the bank
to expand its financial products for micro and small enterprises, a key
source of job creation and poverty reduction in the Kyrgyz Republic.
The project is part of IFC’s $45 million
Central Asia Micro and Small Enterprises Facility, which makes loans to
selected local banks for onlending to micro and small enterprises in Kazakhstan,
the Kyrgyz Republic, Tajikistan, and Uzbekistan in cooperation with the
European Bank for Reconstruction and Development.
“We value highly IFC’s long-term,
strategic partnership. This is our second credit line with IFC in four
years. The first had an important role in developing the small and medium
enterprise sector in our region, and this additional financing will help
develop both the sector and the economy,” said Kwang-Young Choi, Chairman
of the Management Board of the Kyrgyz Investment and Credit Bank.
IFC’s investment is expected to provide
the Kyrgyz Investment and Credit Bank with longer-term resources for onlending
to micro and small enterprises, thus supporting the private sector and
ensuring the bank’s growth and loan portfolio diversification.
“The support of sound financial intermediaries
is a key pillar in IFC’s strategy in the Kyrgyz Republic. We are delighted
to continue investing in the Kyrgyz Investment and Credit Bank, a key player
in the country’s financial sector that is committed to providing much
needed financial services to a greater number of smaller businesses,”
said IFC Vice President for Risk Management Michel G. Maila.
IFC is a founder of the Kyrgyz Investment
and Credit Bank with an equity stake of 20 percent. Kyrgyz Investment and
Credit Bank’s other founders also include the government of the Kyrgyz
Republic, the Aga Khan Fund for Economic Development (AKFED), Deutsche
Investitions und Entwicklungsgesellschaft mbH (DEG), KfW Entwicklungsbank
(KfW) and the European Bank for Reconstruction and Development (EBRD).
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 poor people 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 loan participations
and structured finance for 299 investments in 69 developing countries.
IFC also provided advisory services in 97 countries. For more information,
About the Kyrgyz Investment and Credit
The Kyrgyz Investment and Credit Bank
is a closed joint-stock company that was incorporated in the Kyrgyz Republic
in January 2001. The bank provides a full range of domestic and international
services such as lending, international and national payment services,
and current accounts management to micro, small, and medium enterprises,
as well as individual entrepreneurs. Headquartered in Bishkek, KICB has
three branches in Bishkek, Osh, and Jalal-Abad.