BAKU, Azerbaijan, February 24. The Board of the European Bank for Reconstruction and Development (EBRD) approved the allocation of $50 million to Kyrgyzstan, a source at the EBRD told Trend.
The funds are allocated within the "Phase III of Kyrgyz Sustainable Energy Finance Facility Program" (KyrSEFF).
The new program is aimed at introducing new inclusive financial products, specifically sustainable energy products particularly designed for female-owned enterprises in Kyrgyzstan.
The EBRD will channel assigned money to its partner-banks and microfinance institutions in Kyrgyzstan. Among these institutions are Kyrgyzstan’s Kompanion Bank, Optima Bank, the First MicroFinance Company, Bai-Tushum Bank, Kyrgyz Investment and Credit Bank and DemirBank.
As the source noted, the money can be provided by the aforementioned Kyrgyz banks to any companies that are ready to invest into eligible projects under the program.
"Our partner financial institutions will work together with the consultant under the programme to select projects for companies that fall under the EU definition of small medium enterprises (i.e. employ less than 250 people etc.)," the source said.
The KyrSEFF is the program for financing of sustainable energy in Kyrgyzstan, created by the EBRD and supported by the European Union. The first phase of the program was launched in Kyrgyzstan in 2013 and completed in 2016. The financing of the first stage amounted to $20 million.
The second phase of KyrSEFF started in 2016 and completed in 2021, with a total funding portfolio of $35 million.