Funds will be used to support micro and small businesses across the country.
Kazakhstan’s leading microfinance lender, Microfinance Organisation KMF, will be able to address urgent liquidity needs of micro, small and medium-sized enterprises (MSMEs) caused by the impact of the coronavirus pandemic thanks to a local currency loan provided by the European Bank for Reconstruction and Development (EBRD).
A senior loan of up to US$40 million in Kazakh tenge equivalent will help local businesses continue their business activity and preserve jobs. Providing funding in local currency will limit borrowers’ exchange rate risks.
KMF, which operates 14 branches and 111 outlets across Kazakhstan, provides financial services to over 225,000 customers across the country. It has been a partner of the EBRD since 2005.
The EBRD launched two Solidarity Packages in response to the Covid-19 crisis and now expects to dedicate its total business investments of up to €21 billion in 2020-21 to overcome the economic impact of the crisis.
To date, the EBRD has invested €8.63 billion through 273 projects in the economy of the Republic of Kazakhstan.