BAKU, Azerbaijan, May 28. The State Development Bank of the Kyrgyz Republic OJSC considers it necessary to invest efforts in stimulating green financing, an informed source in the bank told Trend.
“Since the green agenda is growing, the State Development Bank, as a development institution, must invest in systems that promote "green" finance,” an informed source said.
Additionally, it was noted that Kyrgyzstan is a party to the UN Sustainable Development Agenda 2030 and has ratified the Paris Climate Agreement.
“In order to achieve the international commitments assumed by the country, as noted in the above documents, the State Development Bank sees one of the strategic directions as the implementation of activities for the development of a green economy.” In connection with the above-mentioned, the bank has adopted a course to create and develop mechanisms that promote the development and stimulation of “green” financing,” the source added.
The source recalled that the State Bank has developed a new product for targeted financing of projects according to green criteria through partner banks and other financial consumer organisations.
“The State Development Bank has also developed a taxonomy of green projects, which is a classification of economic activities and categories of projects that are designed to enhance the efficiency of the utilization of existing natural resources, reduce the level of negative impact on the environment, improve energy efficiency, energy conservation, and mitigate climate change. The taxonomy is intended to verify the compliance of green initiatives and will remain in effect until the country taxonomy is adopted,” the source noted.
The program “Targeted financing of projects according to green criteria through partner banks and other FCOs” presents an opportunity for partner banks to receive “long” credit funds (up to eight years) at attractive interest rates, which is significantly lower than the average market interest rates (11–12 percent for final borrowers of partner banks) to finance environmental projects.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel