Kyrgyzstan, EBRD Team Up To Empower Women Entrepreneurs With New Finance Code

(MENAFN- Trend News Agency) BISHKEK, Kyrgyzstan, July 5. The National Bank of Kyrgyzstan has officially launched the Women Entrepreneurs Finance Code, an initiative developed in partnership with the European Bank for Reconstruction and Development (EBRD), Trend reports via the Kyrgyz Bank.

Aimed at improving access to finance for women-led businesses, the initiative seeks to unlock the full economic potential of female entrepreneurs across the country.

Speaking at the launch ceremony, National Bank Chairperson Melis Turgunbaev underscored the macroeconomic significance of the initiative. He emphasized that supporting women's entrepreneurship is not a niche policy but a key element of Kyrgyzstan's broader economic strategy.

"The small and medium-sized enterprise sector, where women entrepreneurs play a significant role, accounts for a large share of our country's GDP. The launch of the Code, reinforced by the recent legal recognition of the concept of 'women's entrepreneurship,' lays a solid institutional foundation for mobilizing financial sector resources and channeling them into the development of this strategically important segment of the economy," said Turgunbaev.

Key financial reforms were introduced as part of the initiative. Among them are increased limits for unsecured loans, which aim to ease credit access for women entrepreneurs. Additionally, reserve requirements for banks have been reduced: financial institutions participating in women-focused programs can now allocate just 1 percent in reserves for potential credit losses, making such lending more financially attractive and less burdensome for lenders.

"We are not issuing calls to action - we are building functioning market mechanisms. The financing of women entrepreneurs is not only strategically important but commercially viable," he said, calling the Code a long-term institutional effort rather than a one-time measure.

To ensure implementation and oversight, the National Bank will coordinate a newly formed National Coalition under the Code. This coalition will align the efforts of all participating stakeholders and monitor progress over time. A cornerstone of the initiative will be the introduction of gender-disaggregated data collection by financial institutions, which will enable more accurate, evidence-based regulatory and policy decisions going forward.

The Code has already gained strong support within the financial sector. Ten of the country's leading financial institutions, including seven commercial banks, two microfinance organizations, and the state-backed Guarantee Fund, have officially signed on to the initiative.

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