Bishkek, Kyrgyz Republic, June 27, 2016—IFC,
a member of the World Bank Group, is launching a new advisory project to
further strengthen the country’s financial infrastructure and unlock affordable
financing for smaller businesses and individuals, helping them grow and
Over the next three years, the Electronic and Digital Financial Services
Project will help establish effective and sustainable e-service providers
in the Kyrgyz Republic. The aim is for customers to be able to perform
a wide range of financial transactions using mobile products, including
bill payments, loan repayments and money transfers.
In addition, the Financial Markets Infrastructure
Project III will continue to help develop an efficient credit reporting
system to help reduce default rates and expand lending in the country.
It will also continue to expand its financial literacy program and promote
movable asset-based lending to allow smaller businesses to use assets like
machinery and crops as collateral for loans.
Lada Orozbaeva, Deputy Chairperson of the
National Bank of the Kyrgyz Republic, said: “Thanks to this new project
and the application of modern innovative technologies, small business owners
will be able to access basic retail banking services such as cash withdrawals
and fund transfers with their bank cards or mobile phones, without the
need to travel to remote bank branches.”
In the Kyrgyz Republic, more than two-thirds
of the adult population is excluded from formal financial services. A majority
of the population has no choice but to rely on cash and informal services
for transactions, savings and credit, at high risk and cost.
“Significant improvements in mobile phone
and card payment technology are resulting in new, innovative business models
that deliver financial services at lower prices to more remote areas. By
supporting regulatory reforms and providing technical advice and knowledge,
we hope to unlock the great potential that mobile financial services have
for increasing access to affordable, mass-market financial services,”
said Rolf Behrndt, Practice Manager, World Bank Group Finance and Markets
The Azerbaijan-Central Asia Electronic Project
and Digital Financial Services and Financial Markets Infrastructure Projects
are funded by the government of Switzerland and the United Kingdom’s Department
for International Development, and implemented by IFC within the World
Bank Group Finance and Markets Global Practice.
About the World Bank Group
The World Bank Group is one of the world's largest sources of funding and
knowledge for developing countries. It comprises five closely associated
institutions: the International Bank for Reconstruction and Development
(IBRD) and the International Development Association (IDA), which together
form the World Bank; the International Finance Corporation (IFC); the Multilateral
Investment Guarantee Agency (MIGA); and the International Centre for Settlement
of Investment Disputes (ICSID). Each institution plays a distinct role
in the mission to fight poverty and improve living standards for people
in the developing world. For more information, please visit www.worldbank.org,
To learn more about Swiss Assistance,
please visit www.swiss-cooperation.admin.ch/centralasia.
To learn more about the UK’s Department
for International Development, please visit www.dfid.org.