The European Bank for Reconstruction and Development (EBRD) is promoting green lending in the Kyrgyz Republic by adding three partner banks to its US$ 50 million Green Economy Financing Facility III (KyrSEFF III), approved by the Bank’s shareholders at the end of 2022.
Demir Kyrgyz International Bank, FINCA Bank Kyrgyzstan, Kyrgyz Investment and Credit Bank have agreed to engage in lending to small and medium-sized businesses and households across the country.
KyrSEFF III will also offer financing to vendors and producers of eligible materials and equipment covered by the online Technology Selector, a database of energy-saving technologies, available on the KyrSEFF website.
EBRD Vice President Mark Bowman said: “We welcome partner banks to KyrSEFF III. They will participate in our third green financing facility in the Kyrgyz Republic to help address pressing environmental issues in a country badly affected by climate change. For more than 10 years, the EBRD, local financial institutions and the authorities have helped our green lending programmes become a useful tool in promoting a greener future for the country. We want to build on this success.”
While previous programmes have focused mainly on energy and resource efficiency, KyrSEFF III will broaden the scope of its activities. It is aiming to introduce new, inclusive financial products to support climate resilience and adaptation, reduce pollution and promote the sustainable use of water.
To date, the EBRD has invested €960 million in the Kyrgyz Republic through 238 projects, with most of those funds supporting private entrepreneurship.
