The European Bank for Reconstruction and Development (EBRD) is continuing to play an active part in developing the private sector and stabilising the business operations in the Kyrgyz Republic with an increase in financing to further develop the country's manufacturing industry, official website reports.
The Bank is providing a new €8 million additional loan to Interglass, the largest industrial glass producer in Central Asia, to complete the upgrade of the plant's facilities in Tokmok, northern Kyrgyzstan.
The investment is part of the Bank's support to ensure the continued recovery of the Kyrgyz Republic's economy and sustainable growth after a period of social and political unrest in the recent past.
The EBRD's funds will be used to complete the plant's rebuilding and commissioning with modern equipment, which will improve energy efficiency. The planned improvements will increase production capacities to meet the growing demand for construction materials in the region.
"The EBRD is committed to supporting the Kyrgyz economy and rebuilding confidence, including that of foreign investors. When Interglass completes the planned modernisation activities, it will become a stronger regional player and continue to set an example to the rest of the manufacturing sector as the market leader throughout the country," said Kenji Nakazawa, Head of the EBRD Resident Office in Bishkek.
Interglass is the biggest industrial enterprise in the Kyrgyz Republic, employing about 1,300 workers and producing around 10 million square meters of glass annually.
In the past the EBRD provided Interglass with a €5.5 million loan and a €10 million loan in 2004 and 2009 respectively, viewed as one of the most successful investments in the region with significant impact on economic development of the Kyrgyz Republic.
The EBRD, as a long-term partner and the biggest investor in the Kyrgyz private sector, continued to disburse its funding and develop new projects in the Kyrgyz Republic during the recent political instability.
The EBRD worked closely together with other institutions in 2010, helping to forge a coordinated response from the international community to the unrest and violence that erupted in the country's capital and southern regions.
The Bank moved quickly to assess the country's needs in the private sector and offer the Bank's support to the recovery and further development of the country. As a part of support for recovery of the country's southern regions, the EBRD increased its funding to Kyrgyz micro-finance organisations operating there.
During a visit to Bishkek on 23-24 May, EBRD President Thomas Mirow reinforced the EBRD's strong commitment to use the tools of investment to support the economic and democratic development of the Central Asian nation. Together with the Kyrgyz authorities, the EBRD has been working on a new Country Strategy, which will be presented later this year.
Overall, in 2010, the EBRD signed eight projects worth a total of € 85.9 million (US$ 115.1 million). To date, the EBRD has committed about US$ 450 million in various sectors of the Kyrgyz economy, mobilising additional investments of about US$ 650 million in over 70 projects. Some 80 per cent of the projects have been investments into the development of the country's private sector.