EBRD provides financial package of USD 25 mln to Kazakhstan’s leading microlender

The European Bank for Reconstruction and Development (EBRD) is supporting inclusive lending in Kazakhstan by providing new funds to the country’s leading microfinancier, KMF, Kazinform News Agency cites EBRD in Kazakhstan.

KMF has been an EBRD client for almost two decades. The financial package of up to US$ 25 million (€ 23.2 million) will be disbursed in local currency, the Kazakh tenge (KZT) or in US dollars, giving businesses managed or owned by women entrepreneurs or young individuals access to much-needed funds without exposure to foreign exchange-related risks.

It will consist of a loan of up to US$ 15 million (€9.3 million) under the EBRD’s Women in Business (WiB) programme for Central Asia, which is supported by the Women Entrepreneurs Finance Initiative. KMF will also benefit from technical assistance under the WiB, which will help promote women’s entrepreneurship and business activity. Its clients, women-led small and medium-sized enterprises, will also receive access to technical advice through the Bank’s Advice for Small Businesses programme.

The second segment of the package is a loan of up to US$ 10 million (€ 9.3 million) under the EBRD’s Youth in Business programme in Central Asia, which targets micro, small and medium-sized enterprises led or owned by young individuals under the age of 35. Eligible borrowers will benefit from grants and concessional co-financing designed to stimulate inclusive lending and youth entrepreneurship.

With more than €10.3 billion invested in the country to date through 322 projects, Kazakhstan is the EBRD’s largest and longest-running banking operation in Central Asia.