IFC Provides $2.5 Million to Kyrgyz Investment and Credit Bank to Support SME Financing
In Washington:
Georg Schmidt
Phone: +1 (202) 458-2934
Fax: +1 (202) 974-4384
Email: Gschmidt@ifc.org
Washington D.C., July 25, 2005 - The
International Finance Corporation, the private sector arm of the World
Bank Group, has signed an agreement to provide $2.5 million in medium-term
debt financing to the Kyrgyz Investment and Credit Bank. The loan will
broaden the bank’s funding base and support the growth of its small and
medium enterprise portfolio.
Founded in 2001 by IFC, the Aga Khan Fund for Economic Development, Deutsche
Investitions- und Entwicklungsgesellschaft, KfW Entwicklungsbank, and the
European Bank for Reconstruction and Development, the Kyrgyz Investment
and Credit Bank has developed into one of the country’s leading providers
of term finance to SMEs. IFC holds a 20 percent stake in this full-service
commercial bank, which operates as a closed joint stock company under the
laws of the Kyrgyz Republic.
IFC’s Director for Financial Markets, Jyrki Koskelo, stated, “IFC financing
comes at a key point for the bank and will enable it to scale up operations
and provide a wide range of high-quality banking services for private companies.”
He added, “This investment underscores our confidence in the Kyrgyz Investment
and Credit Bank, which has successfully pioneered the introduction of medium-
and long-term lending to the domestic market.”
Shahbaz Mavaddat, IFC’s Acting Director for Southern Europe and Central
Asia, said, “IFC’s has invested in the Kyrgyz Investment and Credit Bank
with a view to promoting private sector development in the country. The
bank is a key player in the financial sector, and its SME financing will
have a positive impact on the whole economy.”
Kwang-Young Choi, Chief Executive Officer of the Kyrgyz Investment and
Credit Bank, emphasized, “The financing agreement with IFC constitutes
a significant, long-term funding from an international institution and
is backed by a government guarantee. This credit line underpins our ability
to provide medium- to long-term investment loans to the private sector.”
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in emerging markets,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in transition and developing countries, mobilizes capital
in the international financial markets, helps clients improve social and
environmental sustainability, and provides technical assistance and advice
to governments and businesses. From its founding in 1956 through FY04,
IFC has committed more than $44 billion of its own funds and arranged $23
billion in syndications for 3,143 companies in 140 developing countries.
IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its
own account and $5.5 billion held for participants in loan syndications.
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