Dilbar Abdukarimova is a client of the MFO “KMF”. She lives in the city of Shymkent and owns a grocery store, as well as a hardware store, selling food, household goods, etc. She is getting loans from the KMF for repair works and the product-line expansion from time to time. The KMF loan officer proposed to take an advantage of the Green Financing Program GEFF from the European Bank for Reconstruction and Development. Dilbar was pleased to make use of the KMF microloan, and to purchase equipment choosing it from the Green Technology Selector. She has bought an energy efficient refrigerator Dauscher A +++ class for her grocery store.
Dilbar is heartily satisfied with this decision, as she can already use the refrigerator in her grocery store and earn money, while there is no need to pay the whole price for the refrigerator at once. It is possible to divide the total amount by up to 84 months and pay in a convenient mode. The client also saved money, as she received a cashback compensation in the amount of 10% of the refrigerator’s cost. The compensations are paid quickly.
Each client whose application has been verified in the current month, receives money until the end of the next month. It usually happens before the completing loan repayment. The compensation can be used at one’s own discretion – it can be used for the loan repayment, or for other purposes. It is very convenient for the clients. Dilbar expressed her gratitude to the KMF and the GEFF program for this opportunity.
To receive the compensation under the GEFF (Green Economy Financing Facility) in Kazakhstan, it is necessary to:
The Green Technology Selector is an electronic catalogue of Kazakh and foreign technologies.
10% or 15% of the loan or investment in the energy efficient modernization can be compensated after successful verification. The compensation is calculated from the lower amount. The compensations are paid every month for all applications which were successfully verified and confirmed in the previous month.
The compensation funds were provided by the Global Environment Facility (GEF). In addition, the Austrian Federal Ministry of Finance is funding the technical assistance services and the compilation of the Green Technology Selector through the GEFF.
The GEFF program is a part of the Green Economy Transition (GET) approach proposed by the EBRD. The EBRD has unveiled an ambitious plan to scale up even further its climate and environmental finance and to increase green financing to more than 50 per cent of its annual investment volume by 2025, with a special emphasis on the gender issues.
The GEFF program is working through a network of more than 155 financial institutions in 27 countries of the EBRD operation. The total amount of the EBRD investments under the GEFF Program has reached € 5 billion, benefiting 202,000 clients. The implemented projects led to reduction of CO2 emissions at the level of 9 million tons annually.
The EBRD has implemented 276 projects and invested almost 8.6 billion EUR into the economy of the Republic of Kazakhstan.
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