OREANDA-NEWS. Eurasian Development Bank (EDB) and Aiyl Bank signed an agreement today to finance a microcredit programme in Kyrgyzstan. A USD 5 million loan will be provided as a one-off tranche for three years. The agreement was signed by Dmitry Krasilnikov, Deputy Chairman of the Management Board at EDB, and Erkin Asrandiyev, Chairman of the Management Board at Aiyl Bank.

Aiyl Bank will select sub-borrowers on its own using the criteria approved by EDB and provide them targeted sub-loans for business development. Sub-loans for a total between USD 1,000 and USD 200,000 will be extended for up to 36 months.

"For the Kyrgyz Republic supporting micro and small-sized businesses is one of the effective instruments to revitalise the country's economy," says Dmitry Krasilnikov. "The project launched by EDB and Aiyl Bank will help to create favourable conditions for the sustainable development of business, trade and competition and thereby promote increases in production, the range of products and services, and improvements in their quality. Therefore, the provision of support to micro and small-sized businesses will help to achieve significant effects in advancing the country's market economy."

Finance is provided in the framework of EDB's Programme for Microfinance Support through the Provision of Targeted Loan Facilities to Financial Institutions.

In December 2013, EDB provided USD 5 million to Halyk Bank Kyrgyzstan under the same programme.