BAKU, Azerbaijan, May 29. The State Development Bank of the Kyrgyz Republic (SDB) aims to encourage participants in the country's financial system to engage in environmentally responsible activities, a source in the bank told Trend.
"In the medium term, organizations engaging in environmentally responsible activities will gain access to global resources. The State Development Bank aims to stay aligned with current financial system trends and intends to encourage Kyrgyzstan's financial system participants to develop in this direction," the bank said.
SDB noted that the active lifestyle of people and the consumption of resources without considering their life cycle have led to the depletion of natural resources, ecosystem degradation, and climate change. Consequently, the world is now transitioning to a new modern society founded on responsible natural resource consumption principles.
"The public demand for a green agenda presents opportunities for organizations that align their development with systematic transformations to combat climate change. Investors are increasingly drawn to regions and organizations that exhibit social and environmental responsibility," the bank added.
To note, the State Development Bank of the Kyrgyz Republic has developed the program "Targeted financing of projects according to green criteria through partner banks and other financial and credit organizations," which offers partner banks the opportunity to receive long-term credit funds (up to 8 years) at attractive interest rates. To finance environmental projects, these rates are significantly lower than the average market rates (11–12 percent for final borrowers of partner banks).
