Bishkek, Kyrgyz Republic, October 26, 2022—IFC is providing financing to microfinance company Elet-Capital in the Kyrgyz Republic to increase access to finance for women-owned microenterprises (WMEs) and micro housing in rural areas of the country.
IFC’s $2.5 million-equivalent loan in Kyrgyz som loan to Elet-Capital will be split equally between WMEs and housing finance for low-income individuals to help address the financing gaps for both. The gap for micro, small, and medium enterprises (MSMEs), including those owned by women, in the Kyrgyz Republic is estimated at $1.4 billion, equivalent to 21 percent of GDP. Housing finance is also scarce for many low-income households, especially in rural areas.
This is IFC’s second loan to a Kyrgyz microfinance institution to support women-owned MSMEs and housing - with energy efficient components - in rural areas. Earlier, IFC provided $2.5 million in financing to microcredit company Bailyk Finance. The aim is to support the country’s microfinance sector and help financial intermediaries remain viable and support smaller businesses amid a challenging economic environment.
“This is another important milestone for our company, which we started in 2005 with a goal to increase access to finance for underserved small and medium enterprises, including women-led ones. IFC’s long-term partnership has supported us greatly as we continue to work on fulfilling that goal,” said Ernest Kamchybekov, General Director of Elet-Capital. “We are proud to receive IFC financing and always grateful to IFC’s team for their professionalism.”
Cassandra Colbert, IFC Senior Manager, Central Asia, said: “Our financing will enable Elet-Capital to help women-owned microenterprises, who play a significant role in advancing the economic growth of the country, grow their businesses, create much-needed jobs, and pursue economic opportunities. It will also extend access to housing microfinance for many rural families who want to buy an affordable property, or upgrade or improve conditions in an existing home.”
The loan to Elet-Capital is the second project in the Kyrgyz Republic under IFC’s Base of the Pyramid Program (BOP), an extension to its Fast-Track COVID Facility launched in 2021. BOP helps financial services providers deliver funding to help MSMEs, informal enterprises and low-income households recover from the operational and financial impacts of the COVID-19 pandemic. It is providing up to $600 million to microfinance institutions, non-bank financial institutions, and MSME-focused banks. The local currency financing is being provided through currency swaps with the Local Currency Facility of the International Development Association’s Private Sector Window.
IFC has been partnering with Elet-Capital since 2013, helping the company improve corporate governance, boost housing microfinance, and promote financial literacy.
About Microfinance Company “Elet-Capital” CJSC
“Elet-Capital” was founded in September 2005 as a microcredit company supporting micro and small business in the Kyrgyz Republic. Today, the company is a specialized microfinance institution established as a Closed Joint Stock Company and operating in accordance with the legislation of the Kyrgyz Republic. With its loan portfolio amounting to 2 billion 70 million soms and 22,325 active clients, the Company is one of the top five microfinance companies of the Kyrgyz Republic. “Elet-Capital” has a wide network of branches which includes 21 client service offices and 245 employees. For more information, visit https://elet.kg
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About the IDA Private Sector Window
The International Development Association’s Private Sector Window (IDA PSW) was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in creating jobs and promoting economic transformation, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency. The IDA PSW is an option when there is no commercial solution and the World Bank Group’s other tools are insufficient. For more information, visit: http://ida.worldbank.org/psw