The European Bank for Reconstruction and Development (EBRD) has arranged a financing package worth $10 million to the Bai Tushum Bank (BTB) in a partnership with German financiers Deutsch Investitions und Entwicklungsgesellschaft (DEG,) the bank announced Dec. 12.
The financing loans will be used to help micro, small and medium-sized enterprises within the Kyrgyz Republic. Two million dollars are coming from the EBRD directly and the DEG will be financing the remaining $8 million to the BTB. The local bank will distribute the funds in the local currency to enterprises of this type.
“We are pleased to be able to mobilize significant financing from DEG, thus helping our partner bank to diversify funding sources and bring more long-term resources to BTB clients,” said Muzaffar Zuhurov, principal banker in the EBRD Loan Syndications team.
According to the announcement, this agreement will be the first time that the German development finances firm will be lending to BTB with the EBRD.