NUR-SULTAN. KAZINFORM – The European Bank for Reconstruction and Development (EBRD) is providing new funding, creating growth opportunities and facilitating green lending in Kazakhstan by offering a $60 million financing package to one of the largest lenders in the countries, Bank CenterCredit (BCC), ebrd.com reports.
It will consist of a local currency loan of up to the equivalent of US$20 million under the EBRD’s Green Economy Financing Facility (GEFF), designed to support domestic companies ready to invest in technologies. and climate change mitigation and adaptation services. The funding will be supported by grants from the Climate Investment Fund.
The remaining US$40 million (in local currency equivalent) will be provided for on-lending to national micro, small and medium enterprises (MSMEs). The funds will help them cope with the aftermath of the pandemic and provide long-term sustainable financing for Kazakhstan’s economy. The loan will be supported by grants from the EU Investment Facility for Central Asia under the Regional Program for Small Businesses in Central Asia.
The GEFF program is part of the EBRD’s Green Economy Transition (GET) approach, through which the EBRD aims to become a majority green bank by 2025. The program operates through a network of over 145 local financial institutions in 27 countries, supported by over €4.6 billion in EBRD financing for 190,000 clients to date. These projects have led to annual CO emissions2 emissions reductions of over 8.6 million tonnes to date.
In 2022, the EBRD celebrates the 30th anniversary of Kazakhstan’s membership of the Bank. With over US$10.3 billion invested in the country to date, it is the EBRD’s largest and longest running uninterrupted banking operation in Central Asia.