Baku, Azerbaijan, Oct. 4
By Elena Kosolapova - Trend:
The Asian Development Bank (ADB) is providing a $122 million loan to develop small- and medium-sized enterprises (SMEs), the bank reported on Nov. 4.
The project loan agreement was signed in Astana on Nov. 4 by ADB's Kazakhstan Acting Country Director Asel Chyngysheva and the Chairperson of Kazakh state-owned Damu Entrepreneurship Development Fund Management Board, Lyazzat Ibragimova.
"Improved access to finance will help generate more investment, employment, and ultimately income for small and medium business owners," said Asel Chyngysheva. "The project will focus on lending to businesses located outside of big cities and women entrepreneurs".
Under the terms of the loan, which is guaranteed by the Republic of Kazakhstan, ADB will provide the loan to Kazakh state-owned Damu Entrepreneurship Development Fund at a fixed-interest rate for 5 years. In turn, Damu will make the funds available to Bank CenterCredit and TsesnaBank, allowing them to offer loans denominated in tenge, Kazakhstan's currency, at an affordable rate to their SME clients.
The loan is part of a $500 million Small and Medium Enterprise Investment Program multitranche financing facility approved by ADB's Board of Directors in September 2012.
Kazakhstan's government and Damu view SMEs as key to boost the country's economic growth and diversify the economy.