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IFC Investment to Expand Microcredit to 10,000 Entrepreneurs in Kyrgyz Republic
Bishkek, Kyrgyz Republic, April 13,
2009—IFC, a member of the World Bank Group, is investing $4 million
in Bai Tushum to help the microcredit company create additional financial
opportunities for about 10,000 microenterprises, private entrepreneurs,
and farmers in remote areas of the Kyrgyz Republic.
Increasing access to finance for microenterprises
is crucial for stimulating economic activities, creating jobs and reducing
poverty. With IFC’s financing, Bai Tushum plans to expand its reach in
underserved areas, reaching thousands of new microentrepreneurs across
the country.
“This investment, our second long-term
loan from IFC, will support our development plans and help us expand our
loan portfolio,” said Gulnara Shamshieva, Bai Tushum’s CEO. “We will
be able to create a wider range of financial products for underserved markets
in the Kyrgyz economy.”
Shahbaz Mavaddat, Director IFC for Southern
Europe and Central Asia, said: “The project reflects IFC’s strategy of
strengthening local financial institutions and expanding access to finance
in the Kyrgyz Republic, which that is the foundation for private sector
growth.”
The Kyrgyz Republic joined IFC in 1993,
and IFC’s commitments to the country have reached nearly $75 million.
This includes $70 million in investments and $5 million in advisory services
with a focus on microfinance, housing finance, corporate governance, and
business environment.
About IFC
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. IFC’s new
investments totaled $16.2 billion in fiscal 2008, a 34 percent increase
over the previous year. For more information, visit www.ifc.org.
About Bai Tushum
Bai Tushum was established in 1997 with
the support of U.S.-based Agricultural Cooperative Development International/Volunteers
in Overseas Cooperative Assistance and CARITAS, a Swiss non-governmental
organization. It provides microcredit services to private entrepreneurs,
traders, farmers, and micro and small agricultural enterprises using individual
and group lending methodologies. Bai Tushum has some 18,000 clients, with
most of its portfolio outside the capital, Bishkek, The company operates
through a regional network of seven branches and 35 sub-offices.
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