BAKU, Azerbaijan, May 16. The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are expanding financial support for micro, small and medium-sized enterprises (MSMEs) in Central Asia and Mongolia through additional guarantees aimed at improving access to finance, Trend reports.
Under the initiative, 25 million euros in new EU guarantees will be provided to local partner financial institutions for on-lending to MSMEs. The support is part of the Growth4All program and is designed to strengthen financing options for small businesses that often face difficulties securing loans needed to expand operations. The program is expected to benefit around 3,500 businesses in Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan.
The guarantees will be issued through the European Fund for Sustainable Development Plus (EFSD+), a financing instrument that supports investments in partner countries as part of the EU’s Global Gateway strategy.
The EBRD said the initiative will help reduce risk for financial intermediaries and incentivize lending to underserved businesses. It forms part of broader efforts to encourage inclusive and sustainable private-sector development in the region.
EBRD President Odile Renaud-Basso said the program reflects the bank’s ongoing partnership with the EU and its focus on building resilient and inclusive businesses in Central Asia and Mongolia.
European Commissioner Valdis Dombrovskis noted that the initiative will help drive job creation and economic development, while also reinforcing the EU's engagement under its Global Gateway framework.