The European Bank for Reconstruction and Development (EBRD) and the European Union are boosting access to finance for micro, small and medium-sized enterprises (MSMEs) in Central Asia and Mongolia.
According to the EBRD, an additional €25 million in EU guarantees will be made available to local partner financial institutions for on-lending to this business segment. This marks an expansion of the existing Growth4All guarantees to a region where MSMEs form the backbone of the economy but often struggle to obtain finance to grow their business. The comprehensive package is expected to support the supply and demand of MSME financing by reducing associated risks and encouraging financial intermediaries to direct new lending to businesses that need it the most. It is expected to benefit around 3,500 businesses across Kyrgyzstan, Kazakhstan, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan.
The EU is providing the guarantees through its European Fund for Sustainable Development Plus (EFSD+), which supports financing and investment operations in partner countries outside Europe, in line with the EU’s Global Gateway investment strategy.
European Commissioner for Economy and Productivity; Implementation and Simplification Valdis Dombrovskis said: “This agreement will see the EU partner with the EBRD to provide an additional €25 million in guarantees under the Growth4All initiative, expanding access to finance for micro, small, and medium-sized enterprises in Central Asia and Mongolia. As the backbone of these countries’ economies, facilitating their access to finance will help create new jobs and opportunities, driving inclusive and resilient economic growth. This partnership demonstrates the EU’s commitment to building and deepening mutually beneficial relationships worldwide, aligning with the EU’s Global Gateway investment strategy.”
