Connect with us

EU

EIB launches operations in Kazakhstan

SHARE:

Published

12 years ago

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

Global-Economy-260x183The European Investment Bank (EIB) has launched its lending operations in Kazakhstan by extending two loans to banks operating in the country for projects promoted by Kazakhstan’s small and medium-sized enterprises and mid-cap companies, predominantly in the areas of climate change and environmental protection:

  • €120 million to Development Bank of Kazakhstan (DBK), and;
  • €100m to Sberbank Kazakhstan

Wilhelm Molterer, EIB vice president responsible for lending operations in Kazakhstan, said: “These first-ever EIB loans granted in Kazakhstan will foster private sector development by improving the access of SMEs and midcaps to long-term finance. They will help implement projects that increase the sectoral diversification of the Kazakh economy. At the same time, the EIB funds provided on favourable terms will facilitate the application of Kazakhstan’s 2050 Strategy aimed at developing a sustainable and efficient economic model to further Kazakhstan's goal of becoming one of the world’s 30 most developed countries.”

The funds provided by the EIB will contribute to increasing the share of GDP generated by the SME sector, which currently stands at 18%. SMEs employ some 2.5 million people or 28% of the Kazakh workforce. In most OECD countries, SMEs represent around 95% of all companies and provide 70% of employment.

The loans correspond to the objectives of the EIB External Lending Mandate, which focuses on the development of the local private sector and social and economic infrastructure as well as climate change mitigation and adaptation. In keeping with these objectives, half of the loans will be dedicated to the financing of climate change mitigation and adaptation projects eligible under the EIB Climate Change Mandate.

The EIB is regularly awarded the best possible rating ('AAA') by the leading rating agencies. As a result, the Bank can raise funds on the world’s financial markets on very favourable terms. The EIB is a non-profit-oriented institution and passes on these favourable terms to its customers.

Share this article:

Share this:
Related Topics:
EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter. Please see EU Reporter’s full Terms and Conditions of publication for more information EU Reporter embraces artificial intelligence as a tool to enhance journalistic quality, efficiency, and accessibility, while maintaining strict human editorial oversight, ethical standards, and transparency in all AI-assisted content. Please see EU Reporter’s full A.I. Policy for more information.
Advertisement

Trending