BISHKEK, Kyrgyzstan, March 1. Three local commercial banks have joined the Green Economy Financing Facility III (KyrSEFF III) of the European Bank for Reconstruction and Development (EBRD) in Kyrgyzstan, Trend reports.
According to the EBRD, Demir Kyrgyz International Bank, FINCA Bank Kyrgyzstan, and Kyrgyz Investment and Credit Bank are set to engage in lending to small and medium-sized businesses as well as households in Kyrgyzstan.
“We welcome partner banks to KyrSEFF III. They will participate in our third green financing facility in the Kyrgyz Republic to help address pressing environmental challenges. For more than 10 years, the EBRD, local financial institutions and the authorities have worked together to promote a greener future for the country. We look forward to building on this success,” the EBRD Vice President Mark Bowman said.
The EBRD noted that while previous programs primarily focused on energy and resource efficiency, KyrSEFF III will expand its activities. It aims to introduce new, inclusive financial products to support climate resilience and adaptation, reduce pollution, and promote the sustainable use of water in the country.
Within the framework of KyrSEFF III, the EBRD aims to give up to $50 million to qualifying participating financial institutions (PFIs) in Kyrgyzstan so they can lend it to green projects in homes and businesses across the country. KyrSEFF III will help Kyrgyzstan shift towards a sustainable, low-carbon, and climate-resilient economy. The aim is to avoid locking the country into a path that relies heavily on carbon emissions, making it vulnerable to climate change and environmental damage.
In 2023, the EBRD allocated 102 million euro across 22 projects in Kyrgyzstan, marking the most substantial operational result of the bank in the country over the past five years. Sixty-seven percent of these projects were directed towards the private sector, with nearly 40 percent of investments dedicated to green initiatives.
So far, the EBRD has invested 960 million euro in Kyrgyzstan across 238 projects, primarily focusing on supporting private entrepreneurship.