Baku, Azerbaijan, Jan.10
By Aygun Badalova -Trend:
European Bank for Reconstruction and Development (EBRD) supports the expansion of the Kyrgyz small retail food chain, NASH, with a loan of 840,000 dollars, the EBRD reported on Jan. 10.
The loan will partially finance the purchase of additional premises, trade and warehouse equipment and the construction of new facilities. The loan has been made under a joint EBRD-EU programme for small business support.
"The investment is driven by strong growth potential in the Kyrgyz retail market, where there is still a low concentration of retail chains in the capital, Bishkek, and in the rest of the country," the EBRD's report said.
The owner of NASH is a Kyrgyz entrepreneur with more than 10 years' experience in distribution and five years in retail business.
NASH is one of ten projects in Central Asia that have been financed under the joint EBRD-EU SME Finance Facility for Central Asia, to which the European Union's Investment Facility for Central Asia (IFCA) has provided 11 million euros of funds for credit enhancement support and technical assistance. The company and this project are assisted by technical cooperation funds provided by the EBRD and the EU's IFCA.
The joint EBRD-EU SME Finance Facility for Central Asia was created in 2012 to support direct lending to small and medium-sized enterprises (SMEs) and indirect financing of SMEs via local banks in Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.
The EBRD has invested over 450 million euros in more than 105 projects in Kyrgyzstan.