BISHKEK, Kyrgyzstan, February 23. The European Bank for the Reconstruction and Development (EBRD) approved a loan of up to $4 million in local currency to FINCA Bank Kyrgyzstan through the Kyrgyz Republic Green Economy Financing Facility - GEFF (KyrSEFF III), Trend reports.
According to the EBRD, the loan will last for 3 years, with the first year being a grace period. The goal of the project is to help FINCA Bank become better at financing projects that save energy and water, which will make the financial sector of the country more competitive.
The EBRD mentioned that the money will be lent to other borrowers for various purposes such as energy efficiency, renewable energy, circular economy, and climate resilience investments. Projects will be chosen based on specific technical and financial standards outlined in the KyrSEFF III policy statement. All the funds will exclusively support investments aimed at transitioning to a greener economy.
Within the framework of KyrSEFF III, the EBRD aims to give up to $50 million to qualifying participating financial institutions (PFIs) in Kyrgyzstan so they can lend it to green projects in homes and businesses across the country. KyrSEFF III will help Kyrgyzstan shift towards a sustainable, low-carbon, and climate-resilient economy. The aim is to avoid locking the country into a path that relies heavily on carbon emissions, making it vulnerable to climate change and environmental damage.