In order to increase the chances to access to finance for micro, small and medium enterprises in the in rural regions of the Kyrgyz Republic, the European Bank for Reconstruction and Development (EBRD) is providing a $1m loan to Mol Bulak Finance, one of the top five microfinance institutions in the country.
The EBRD credit line will support the development of Mol Bulak Finance, enabling it to increase its outreach to small business entrepreneurs in remote areas of the country, where access to funds remains limited due to the lack of lending from the formal banking sector.
Provided in the local currency, the loan will help Mol Bulak Finance to reduce foreign exchange risk.
Commenting on the loan, Masaru Honma, EBRD Director for Central Asia, said: “This transaction will deepen the level of financial intermediation in the Kyrgyz Republic and will bring much needed financing to MSEs in rural areas. Increasing financing for entrepreneurs supports the growth of the Kyrgyz economy”.
FinSMEs
29/09/2009