EBRD provides US$ 1 million to First MicroFinance Company local currency loan to support micro and small businesses in Kyrgyz Republic

EBRD provides US$ 1 million to First MicroFinance Company local currency loan to support micro and small businesses in Kyrgyz Republic

The credit line will be used to on-lend to micro and small entrepreneurs (MSEs) in rural and remote areas of the country, which are in particular need of such support.

By working with FMFC, domestic MSEs with revenues in local currency will not be exposed to foreign exchange risks. It is the EBRD’s fourth loan to FMFC and will support a long-standing client in its financing needs for longer-term local currency funds.

Neil McKain, EBRD Regional Director for Central Asia, said: “This local currency loan will play a major role in supporting Kyrgyz businesses that need financial support most. Given the overall volatility it is particularly important that borrowers do not have to shoulder the exchange rate risk. The strong track record of the FMFC management team provides us with the confidence that this will be another successful joint undertaking.”

Stefan Martiniak, CEO of FMFC, added: “Loans in local currency will allow our clients to continue growing their businesses and improve family incomes without having currency risks. We are glad that FMFC and the EBRD are continuously cooperating in contributing towards the improvement of clients’ quality of lives by providing attractive loans in remote and mountainous areas.”

FMFC and the EBRD have been working together since 2013.

To date, the EBRD has invested about US$ 770 million in various sectors of the Kyrgyz economy, with projects in infrastructure accounting for a third of the total investment. The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 37 economies across three continents. The Bank is owned by 66 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green and integrated.

CJSC First MicroFinance Company was founded and is wholly-owned by Aga Khan Agency for Microfinance, which is incorporated in Switzerland. First Microfinance Company is the second largest microfinance company in Kyrgyzstan. The company currently serves over 14,000 clients, of which 44% are women and 90% are from rural areas. The Company's loan portfolio is 12.9 million US dollars and offers favorable interest rates among Microfinance Companies. The company issues micro loans for livestock and agriculture, trade, small and medium-sized businesses, education and for improving housing conditions and quality of life.

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