Bank project numbers remain close to historic records. The European Bank for Reconstruction and Development provided strong support to emerging economies in 2013 to help them back to a path of recovery, despite a difficult investment environment.
EXECUTIVE SUMMARY Political context. The political environment has been broadly stable, albeit the ongoing dispute with gold company Centerra is creating tensions. In September, the government and Centerra signed a memorandum of understanding which stipulated the exchange of 33 percent of the government’s share in Centerra for a 50 percent stake in Kumtor.
Almaty, 19 December 2013. Sergey Shatalov, Deputy Chairman of the Management Board at Eurasian Development Bank (EDB), is taking part in the G20 Seoul Conference. One of the central issues on the forum’s agenda is the strengthening of dialogue and cooperation between Regional Financial Arrangements (RFAs) and between RFAs and the IMF.
Deputy Chairman of the EDB Management Board, ACF Manager, Sergey Shatalov spoke to VB about the status and prospects of Kyrgyzstan’s cooperation with Eurasian Development Bank and EurAsEC Anti-Crisis Fund (ACF).
At the end of last week, Deputy Chairman of the Management Board of Eurasian Development Bank (EDB) Sergey Shatalov arrived in Bishkek. In his capacity of the coordinator of the Bank’s activity in managing the resources of the EurAsEC Anti-Crisis Fund (ACF), the Deputy Chairman of the EDB Management Board met with a number of Kyrgyzstan’s senior officials. And right after the discussions, he talked to the K-News journalist. The editors are publishing the first part of the interview, in which Sergey Shatalov speaks about the projects that Kyrgyzstan plans to implement with credit resources of the Anti-Crisis Fund.
K-News is publishing the second part of the interview with Deputy Chairman of the Management Board of Eurasian Development Bank Sergey Shatalov, who has shared his views on the prospects of our Republic in the framework of the Customs Union (CU) and the ways to fight poverty.
The EBRD is supporting the expansion of the Kyrgyz small retail food chain, NASH, with a US$ 840,000 loan, which will partially finance the purchase of additional premises, trade and warehouse equipment and the construction of new facilities. The loan has been made under a joint EBRD-EU programmefor small business support.
On December 4, the Executive Board of the International Monetary Fund (IMF) discussed the Financial System Stability Assessment1 of the Kyrgyz Republic.
There is scope to further develop the Kyrgyz financial system, which would support growth and stability. The economy is largely cash based and financial services are limited, with low financial savings mobilization. With the exception of microcredit institutions, which have grown rapidly, the nonbank sector is not significant. Money markets are shallow, the interbank market is dormant, and weaknesses in the financial infrastructure hamper intermediation.
US$ 12 million equivalent syndicated loan to Kompanion Financial Group
The European Bank for Reconstruction and Development (EBRD) has completed the second syndicated loan in local currency in the history of the Kyrgyz financial sector. The loan –in Kyrgyz som equivalent to US$ 12 million –was made to Kompanion Financial Group, one of the largest microfinance institutions in the Kyrgyz Republic and a long-standing client of the EBRD.
The proceeds of the syndicated loan will allow Kompanion to expand its lending operations to micro, small and medium-sized enterprises (MSMEs), especially in rural areas. It will also reduce Kompanion’s exposure to the risk of sharp fluctuations in foreign currency exchange rates. This risk is particularly relevant to microfinance institutions (MFIs). In the past,MFIs have received only foreign currency funding, and their opportunities for hedging have been constrained.