WB, Kyrgyzstan Discuss Green Finance Expansion For Small And Medium Enterprises

(MENAFN- Trend News Agency) BISHKEK, Kyrgyzstan, September 12 . The State Development Bank of Kyrgyzstan and the World Bank (WB) experts discussed the implementation of the Developing a Sustainable Finance Market for Micro, Small, and Medium Enterprises (MSMEs) project in the country, Trend reports via the Kyrgyz bank.

The project, approved by the World Bank's Board of Executive Directors on April 18, 2025, will receive $120 million in financing from the WB and a $50 million loan from the Asian Infrastructure Investment Bank (AIIB), bringing total funding to $170 million. It aims to advance green finance, mobilize private capital, and strengthen the capacity of local financial institutions.

Key components include providing wholesale financing through participating financial institutions to support green and sustainable investments by MSMEs, establishing a Green Finance Fund, and introducing a green guarantee mechanism to reduce risks for lenders. The initiative is expected to mobilize up to $148 million in private sector investments over the next five years.

The project will be implemented through December 2030 with adherence to international standards, including procurement, financial management, and anti-corruption regulations.

The World Bank has had a presence in the Kyrgyz Republic since 1992, signifying a robust 33-year collaborative engagement by 2025. The nation became a member of the International Bank for Reconstruction and Development (IBRD) in September 1992, subsequently aligning with the International Development Association (IDA) within the same timeframe, and thereafter integrating into additional segments of the World Bank Group.

The collaboration initiated with fiscal backing to facilitate Kyrgyzstan's shift towards a market-driven economy and progressed with enhancements in infrastructure, social services, and growth propelled by the private sector.

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