Head of Office: Ms. Larisa Manastirli
Information contact: Nazira Aliyeva, Assistant to Head
Business Centre Orion
21, Erkindik Boulevard, 4th Floor
Telephone: (+996 312) 624 016, 624 017
Fax: (+996 312) 666 284Business Hours: 9.00-6.00 Monday-Friday
European Bank for Reconstruction and Development
EBRD has worked in the Kyrgyz Republic since 1993 and has provided approximately Euro 200 million in financing 49 projects. In 2005-2006, the Bank has signed 20 projects and provided Euro 37 million of new financing. The Bank also has continued an array of TC projects. In 2007-2008, the Bank expects to maintain a similar level of funding, although this figure could increase if supported by appropriate reforms in key sectors – mining, power, telecoms, and banking.
The Bank is currently discussing a new draft Strategy for the Kyrgyz Republic for the years 2007-2008 (available at www.ebrd.com) which describes the following main objectives:
Fostering the Private Sector
Direct financing of private business in agribusiness, textile, property and tourism, consumer services, as well as natural resources. The Bank will continue to expand its successful programme to finance MSEs (including in regions) through intermediaries. The Bank finances local companies and foreign investors, including regional cross-border investments.
Strengthening the Financial Sector
The Bank is currently working with 10 financial institutions, providing finance and technical assistance. The Bank has supported sector development with advice on pledge law, the credit bureau, AML laws. The Bank is prepared to support privatisation of remaining state owned banks. The Bank also will work with banks to expand their product range and to develop products which reduce foreign exchange risks for banks and MSE borrowers.
Support for Critical Infrastructure
Financing of infrastructure has been limited due to the country’s restricted capacity for external borrowing and delay of key reforms (including in energy and telecoms sectors for example. The Bank seeks non-sovereign infrastructure projects, but will require support from donors in the form of co-financing.
The Bank advises Government particularly on private sector development and the investment climate. The Bank recently helped create a new advisory council, with the participation of the President and the Prime Minister, where business representatives can bring attention to key barriers to private sector development. Other key assistance includes training for judges and a legal reform programme to address obstacles to investment.
A list of all Bank signed bank projects is attached. However, some key projects include:
• Kumtor Gold Mine/Centerra - USD 20 million loan and USD 10 million sub debt, which was subsequently converted into equity participation in Centerra Gold.
• Hotel Hyatt Regency Bishkek. Euro 8.4 million to convert Hotel Kyrgyzstan into a five-star hotel.
• Trasnmission Line network improvement (Issyk-Kul). Sovereign loan of USD 38 million to KyrgyzEnergo to finance upgrade of transmission network in Issyk-Kul area. The loan is being fully repaid by the Kumtor gold mine which receives supply from this source.
• Interglass - Euro 5.5 million to finance investments to increase efficiency and profitability of operations at Interglass float glass plant, including two new production lines for mirror and tempered glass and energy efficiency components
During the past two years, the Bank expanded its activities in the financial sector to include:
• At end April 2007, participating banks have USD 200 million (cumulative) to MSEs. Financing helped create or sustain 125,000 jobs. EBRD works with 11 bank and non-bank partners.
• The Bank signed its first Co-Financing Facility (CFF) to meet financing needs of mid size private companies and also has signed a number of smaller deals under the Direct Lending Facility (DLF). CFF and DLF are new products developed under the Bank’s Early Transition Country Initiative.
The Bank uses TC resources for project preparation, implementation and monitoring. Larger TC projects are directed to improve the investment climate and key obstacles to business. Major ongoing projects include:
• Investors Council (IC) – The Bank is supporting the IC Secretariat. The IC supports dialogue between business and government about key issues impacting the investment climate.
• Investor Protection - Support to the Agency on Financial Supervision to address key legislation – securities markets, etc. – impacting on investors.
• Judicial Training programme – Key tasks include:
Training judges via lecturer series;
Establishment of a judges’ case book and judicial library;
Apprenticeships for junior judges outside Kyrgyzstan.
Telecoms Reform - TC to the Agency on Communications and Ministry of Telecoms to improve policies and regulations for telecoms companies (including issues such a tariff policies, inter-company connections and development of universal access.
In 2008 EBRD provided more a $5 million loan for developing a private sector and supporting the bank and non-bank institutions.
In May 2009 EBRD approved a credit line of $20 million to ATF Bank-Kyrgyzstan, to support the Kyrgyz economy via credits to the country’s micro and small and medium-sized business sectors.
The Bank may draw on donors’ grant funds to support its investment activities.
For details of EBRD programs and activities worldwide, please visit EBRD central website http://www.ebrd.com