AKIPRESS.COM - Eurasian Development Bank (EDB) has opened a credit line of US $5 million to Halyk Bank Kyrgyzstan OJSC, the EDB said in a release.

The agreement was signed on September 2 by Dmitry Ladikov-Roev, Managing Director, Asset and Liability Management, EDB, and Kastoru Mamytova, Board Chairman, Halyk Bank Kyrgyzstan OJSC.

The funds are provided under the EDB Microfinance Support Programme by opening earmarked credit lines to financial institutions. Halyk Bank Kyrgyzstan OJSC will independently select its sub-borrowers – individual entrepreneurs and companies meeting EDB’s criteria. Under the terms and conditions of the agreement, funds can be provided in US dollars and roubles.

If implemented, the joint EDB-Halyk Bank Kyrgyzstan project will help establish a favourable environment for sustainable micro and small business development in the Kyrgyz Republic, strengthen the competition, and thus boost output growth, ensure expansion of the line of goods and services and their better quality. The micro and small business support will therefore contribute to the development of a market economy in the Kyrgyz Republic.

The new agreement furthers the successful cooperation of the two financial institutions. Back in 2013, a similar agreement was signed for the amount of US $5 million. The funds were used to finance over 400 micro and small businesses that helped maintain existing jobs in Kyrgyzstan and expand the output.