The European Bank for Reconstruction and Development (EBRD) and KazMicroFinance, the largest non-banking institution of this type, are teaming up to stimulate small and medium-sized enterprises (SMEs), the bank announced Tuesday.
SMEs in the rural regions of the country are the recipient of loans up to $5 million worth of the local currency. This is in addition to an existing $10 million facility that was agreed upon this past year.
“The European Bank for Reconstruction and Development (EBRD) believes that providing opportunities to people in underdeveloped regions is a key condition for the healthy growth of any economy,” EBRD director for Kazakhstan, Janet Heckman said. “We believe non-bank institutions like KazMicroFinance, a long-standing partner of the EBRD, play a very big role in improving access to finance in rural areas.”
This loan aims to help the people in rural areas that do not have the financial resources of the heavily industrialized cities in the country that are necessary to start a business.