EBRD To Grant Loan To Kyrgyz Bank To Promote Green Economy

2/16/2024 12:18:37 AM

(MENAFN- Trend News Agency) BISHKEK, Kyrgyzstan, February 16. The European Bank for Reconstruction and Development (EBRD) has approved a senior loan of $4 million to Demir Kyrgyz International bank (DKIB) under Kyrgyzstan's Green Economy Financing Facility (KyrSEFF III), Trend reports.

The loan, with a 4-year term including a 1-year grace period, will be used to finance projects promoting energy efficiency, renewable energy, a circular economy, and climate resilience in the country.

The funds obtained will be lent to sub-borrowers, who will have the option to withdraw funds in either Kyrgyz soms or US dollars. This transaction is expected to enhance DKIB's ability to finance energy and water efficiency projects, thereby contributing to the development of a more competitive financial sector in the country.

Sub-projects will be selected based on the technical and financial eligibility criteria outlined in the policy statement for KyrSEFF III. All proceeds will be dedicated to investments in transitioning to a green economy.

So far, the EBRD has offered DIKB a diverse array of debt products, such as loans for SMEs, energy efficiency, and mortgages, along with trade finance financing. The total funding provided has surpassed $50 million.

Meanwhile, within the framework of KyrSEFF III, EBRD plans to offer up to $50 million to qualifying participating financial institutions (PFIs) in Kyrgyzstan.

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.

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