NUR-SULTAN – The European Investment Bank (EIB) provided KazMicroFinance (KMF), the largest microfinance organization in Kazakhstan, with $30 million to provide affordable lending to Kazakh small and medium sized enterprises (SMEs), reported forbes.kz.
The KMF will allocate the funds to Kazakh self-employed entrepreneurs and micro-enterprises in urban and rural areas.
“The EIB continues to support Kazakhstan’s small and medium-sized enterprises by providing more affordable loans and helping them stay in business despite the difficulties caused by the COVID-19 pandemic. Our partnership with KMF, the country’s largest microfinance institution, will open up new sources of finance for Kazakh entrepreneurs, especially women and those working in rural areas, so that they can continue to contribute to the economic development of Kazakhstan,” said EIB Vice President Lilyana Pavlova.
Out of $30 million, $13.1 million will fund the lending to business development, the remaining $16.9 million will fund green lending. In accordance with EU directives, the latter will finance measures and the purchase of equipment that can ensure reduction of the environmental impact of entrepreneurial activities and increasing the energy efficiency of Kazakh businesses.
“The financing provided by our European partners will cover about 10,000 borrowers. KMF, in addition to its core activities, will also develop green financing, which will allow borrowers to bring their business to a qualitatively new level and reduce energy costs,” said KMF Board Chair Shalkar Zhussupov.
The EIB’s financial support to Kazakh SMEs has reached 547 million euros ($643.18million) in total. The Kazakh Ministry of National Economy and the EIB concluded an agreement regulating the bank’s investment activities in Kazakhstan in 2010.