BAKU, Azerbaijan, June 30. The European Bank for Reconstruction and Development (EBRD) is providing new funds, creating growth opportunities and facilitating green lending in Kazakhstan by offering a financial package of $60 million to one of the country’s largest lenders, Bank CenterCredit (BCC), Trend reports citing the EBRD.
It will consist of a local currency loan of up to $20 million equivalent under the EBRD’s Green Economy Financing Facility (GEFF), designed to support domestic businesses ready to invest in climate mitigation and adaptation technologies and services. The financing will be supported by grant funding from the Climate Investment Funds.
The remaining $40 million (in local currency equivalent) will be provided for further on-lending to domestic micro, small and medium-sized enterprises (MSMEs). The funds will help them to cope with the after-effects of the pandemic and will provide sustainable long-term financing for the economy of Kazakhstan. The loan will be supported by grant funds from the EU Investment Facility for Central Asia under the Regional Small Business Programme for Central Asia.
The GEFF programme is part of the EBRD’s Green Economy Transition (GET) approach, through which the EBRD aims to become a majority green bank by 2025. The programme operates through a network of more than 145 local financial institutions across 27 countries, supported by more than €4.6 billion of EBRD financing for 190,000 clients to date. These projects have led to annual CO2 emission reductions of more than 8.6 million tonnes so far.
In 2022 the EBRD marks 30 years since Kazakhstan joined the Bank. With more than $10.3 billion invested in the country to date, this is the largest and longest-running uninterrupted banking operation of the EBRD in Central Asia.