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ADB $500-million loan to support SMEs in Kazakhstan

Business Materials 12 May 2011 17:13 (UTC +04:00)

Kazakhstan has signed a framework agreement with Asian Development Bank on a $500 million multitranche financing facility for the development of Kazakhstan's small and medium businesses, Gazeta.kz reported.

From Kazakh side the agreement was signed by Minister of Economic Development and Trade Kairat Kelimbetov, Chief of Entrepreneurship Development Fund 'Damu' Lyazzat Ibragimova. From ADB the agreement was signed by its Vice-President Xiaoyu Zhao.

It is planned that tll the end of this month 'Damu' Fund will receive the first tranche of USD 150 million. This will be a medium-term loan for 5 years at a fixed rate of Tenge.

"Today we have signed an historic agreement between ADB and the Fund 'Damu'. The most important thing is that the loan to SMEs will be provided in Tenge. For a businessman it means the reduction of currency risk," Ibragimova said.

According to her, a loan agreement is planned to be signed during this month.

ADB loans will be extended to all regions of Kazakhstan. At least 40% of all loans must be located outside the cities of Almaty and Astana.

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