The European Bank for Reconstruction and Development (EBRD) said Wednesday that it would finance Kazakhstan railway Eastcomtrans, LLP, an equivalent of $30 million U.S.
The bank agreement with Eastcomtrans, which is considered to be one of the country's largest, privately owned rail lines, was signed in Almaty, Kazakhstan.
The bank will lend $30 million U.S. in local currency that Eastcomtrans will use to purchase equipment and to balance their finances.
The aim of the bank is to help private companies in a sector of Kazakhstan that is dominated by state-run railways.
An additional $25 million could be loaned to the company under an agreement that is still being negotiated.
“We are pleased to arrange this financing for Eastcomtrans and to increase our support of the private sector’s role in Kazakhstan’s infrastructure, which is one of our priorities in the country," EBRD Managing Director of Infrastructure, Thomas Maier said. "This financing was organized in a difficult economic setting with limited access to international funding available to the company. The loan demonstrates our commitment to Kazakhstan”