Baku, Azerbaijan, Sept. 29
By Elena Kosolapova - Trend: The European Bank for Reconstruction and Development (EBRD) is providing a 30 billion tenge (local currency equivalent of $164 million) to Kazakhstan's national rail company, Kazakhstan Temir Zholy (KTZ), the bank reported on Sept. 29.
The company will use the loan to finance the purchase of equipment for logistics and infrastructure maintenance.
"The projects will serve the main priorities for KTZ, to increase Kazakhstan's transit potential and also to strengthen the security of passenger rail transportation," the EBRD reported.
This loan is also significant as the EBRD's largest local currency loan in Kazakhstan to date. It will hedge the company against foreign exchange risk.
KTZ is a joint stock company which manages the country's railway system and also operates passenger and freight rail services, handling about half of all rail freight in the country. The loan will be made to KTZ and its subsidiaries, KTZ Express and Lokomotiv.
Since the beginning of its operations in Kazakhstan, the EBRD has invested close to $6.5 billion in the country's economy with more than half of the Bank's projects supporting the private sector.