BAKU, Azerbaijan, Jun. 12
By Nargiz Sadikhova - Trend:
The European Bank for Reconstruction and Development (EBRD) is planning to provide a senior unsecured loan of up to $40 million in tenge equivalent to KMF, Kazakhstan’s largest private microfinance organization, Trend reports with reference to the EBRD.
To loan is expected to help address the economic impact of the COVID-19 pandemic.
“Proceeds of the proposed loan will be on-lent to local private micro-, small and medium-sized enterprises (MSMEs) and individuals for business purposes to cover liquidity needs that may arise as a result of COVID-19. This project was approved as part of the Bank's response to the COVID-19 pandemic,” the bank said.
The operation is also expected to enable KMF to increase the availability of short-term financing to MSMEs and individuals facing liquidity stress due to the COVID-19 crisis in Kazakhstan.
The loan approval date is May 28, 2020.
KMF is a long-standing client of the EBRD since 2005. It is the largest private microfinance organization in Kazakhstan. The company operates through 111 offices and has over 225,000 active clients.
To date, EBRD has invested 8.63 billion euros through 273 projects in the economy of Kazakhstan. Support of small businesses is particularly important as the country moves to reform its economy and strengthen its private sector.
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