The European Bank for Reconstruction and Development (EBRD) says it is providing a financial package of up to US$ 23 million (€20.3 million) to Demir Kyrgyz International Bank (Demir Bank) to support trade and green innovation in Kyrgyzstan. These funds will help to stimulate trade and address pressing environmental issues in a country badly affected by climate change.
The package involves a senior loan of up to US$ 15 million (€13.2 million) to Demir Bank under the Kyrgyz Republic’s third Green Economy Financing Facility (KyrSEFF III). The proceeds will be provided either in US dollars or in synthetic local currency (Kyrgyz som) and will help local micro, small and medium-sized businesses and households to improve their climate resilience and adaptation, reduce pollution and promote the sustainable use of water.
KyrSEFF III will also offer financing to vendors and producers of eligible materials and equipment covered by the online Green Technology Selector – a database of energy-saving technologies available on the KyrSEFF website.
The EBRD is also increasing Demir Bank’s trade finance limit by up to US$ 8 million (€7 million) under its Trade Facilitation Programme (TFP). This will enable private domestic businesses to import necessary goods, services and equipment and export their products.
The TFP supports international trade to, from and between economies where the Bank operates, including the Kyrgyz Republic. Through the TFP, the EBRD provides guarantees to international confirming banks, taking on the political and commercial payment risks of international trade transactions undertaken by banks in those countries.
Demir Bank is the first bank with international ownership in the Kyrgyz Republic and has been an EBRD client since 1997.
The EBRD has been active in Kyrgyzstan since 1992, investing almost €1.1 billion in the country through 265 projects, mostly in sustainable infrastructure and the private sector.
