The World Bank’s Board of Executive Directors approved the allocation of $120 million to Kyrgyzstan for the implementation of a project for Developing a Sustainable Finance Market for Micro, Small, and Medium Enterprises (MSMEs) in the Kyrgyz Republic project. The WB website says.
Another $50 million in the form of a loan will be provided by the Asian Infrastructure Investment Bank. The total amount of financing will be $170 million.
The project will be implemented to support sustainable economic growth and the development of green financing. It is expected to expand business access to loans through wholesale financing, create a Green Finance Fund and introduce a green guarantee mechanism through the Guarantee Fund.
«Increased private sector-led job creation is a key pillar of the World Bank Group’s Country Partnership Framework with the Kyrgyz Republic,» said Hugh Riddell, World Bank Group Country Manager. «This project will directly benefit MSMEs and financial institutions, thus further contributing to sustained economic growth and creation of thousands of jobs.»
The green guarantee mechanism will significantly reduce risks for lenders and encourage greater access to finance for MSMEs pursuing green projects.
