OREANDA-NEWS. On January 23, 2009 JSC “Bank CenterCredit” (BCC) raised a US45 million 5-year term loan from IFC to support its lending programmes to SME sector, including agricultural projects, reported the press-centre of Bank CenterCredit.

“In the current economic situation small and medium enterprises represent one of the key factors in sustainable development of economy, an important provider of employment, playing a significant role in mitigating the adverse effect of credit crunch both in the economy of the country and the society, as a whole.

At the same time, despite of a tougher lending terms and conditions, the demand from Kazakhstani SMEs for loans, especially longer term funding, does not decrease. We are pleased to consolidate our strategic relationship with IFC through this transaction ”, - noted BCC Chairman of the Management Board Vladislav Lee.

“BCC is a key partner for IFC in addressing the financing needs of Kazakhstani SMEs. Through this new investment BCC has become IFC’s main platform for scaling up financing for SMEs in Kazakhstan,” - said IFC Director for Southern Europe and Central Asia Shahbaz Mavaddat. “IFC is pleased to extend this loan to BCC and to provide continued support to the bank under the current difficult conditions in international financial markets.”

In the opinion of BCC managing director Timur Ishmuratov, the loan will strengthen BCC positions in banking sector services and allow to retain and increase its market share. Despite the significant reduction of Kazakhstani banks’ access to international capital markets, granting of the loan evidences the trust of international investors in BCC, as a stable financial institution adhering to a weighted policy.

IFC funds shall be channeled by BCC to finance its clients – private SME enterprises. The maximum sub-loan amount to eligible sub-borrowers should not exceed USD 1 million with a maturity term not less than a year.

Bank CenterCredit and IFC have been partners since 2005 when BCC joined the IFC leasing finance programme in Central Asia.

Today, BCC is a universal bank focused on micro, small and medium sized enterprises as well as private individuals. It is the sixth largest commercial bank in Kazakhstan in terms of assets with a wide branch network comprising 20 branches and 188 centers of financial and retail service throughout the country. As of 30 September 2008 the assets increased to KZT 999.4 billion, equity capital grew to KZT 78.9 billion, deposit base for the nine-month period of 2008 was up 60% to reach KZT 501.2 billion, while net income of the Bank equaled KZT 7.6 billion.

The Bank has international credit ratings from Moody’s and Fitch Ratings at “Ba1”and “BB-”, respectively.

Established in 1956, IFC is a member of the World Bank Group. IFC mission is to foster a sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC’s new investments totaled US 16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org