Information resource on donors activities
in the Kyrgyz Republic


European Bank for Reconstruction and Development

The EBRD’s operations in the Kyrgyz Republic are focused on private sector development, especially support for micro, small and medium-sized enterprises (MSMEs). The financial and infrastructure sectors are also important priorities. Transition challenges remain significant but there seems to be serious commitment from the new government towards reform.

The Bank signed five corporate sector projects in 2014 in the amount of EUR 4.32 million. These included a USD 2 million to one of the leading Kyrgyz largest suppliers of flour in the country to purchase of site, construction and equipment, trucks and distribution network, aswell as financing for one of the best office buildings and a new cement concrete mixture manufacturer. The Bank also provideda loan to a company for expansion of the existing large store, opening of two new stores and a new warehouse.

Through the Business Advisory Services programme in the Kyrgyz Republic, funded by the Government of Switzerland, the Bank implemented 112 projects with MSMEs and provided ?474,000in grants to help local enterprises work with local consultants to improve performance, quality, energy efficiency and export potential.

In the finance sector, the EBRD continued to support the country’s local banks and microfinance institutions by signing four agreements in local currency – an important part of the Bank’s work in the country. These included a loan to Bai-Tushum Bank to support lending expansion in this bank. It also saw the creation of a new US$20 million Kyrgyz Sustainable Energy Efficiency Facility (KyrSEFF) which aims to provide finance, technical assistance and other support for small-size energy efficiency improvements in the residential, service, agribusiness, SME and industry sectors. The Bank also engaged in policy dialogue and technical cooperation throughout the year to help stabilise the banking sector, strengthen deposit insurance, enhance regulation of the microfinance sector and develop local currency capital markets.

KyrSEFF Program
The program of financing sustainable energy in Kyrgyzstan KyrSEFF - a credit line in the amount of US $ 20 million financed by the European Bank for Reconstruction and Development, with a grant element of 10 to 35% provided at the expense of the Investment Program of the European Union for Central Asia (EU IFCA).

The main goal of the program of KyrSEFF is an increase of energy efficiency of residential buildings and the business sector. Financial support in the form of concessional loans and grants through the four leading partner banks of the country (Demir Kyrgyz International Bank, Kyrgyz Investment and Credit Bank, Bai-Tushum Bank, FINCA Bank).

For borrowers it is envisaged to provide professional technical support in the implementation of energy-saving projects. KyrSEFF team provides consultations and recommendations to optimize energy use and the choice of appropriate technical solutions.

As of May 2015, with the support of KyrSEFF in Kyrgyzstan 443 projects in residential projects and 37 business sectors have been implemented. The amount issued under the program of investment grant makes more than $ 1 million US dollars.
For more information on the activities of KyrSEFF can be found on the program website: www.kyrseff

In the municipal infrastructure sector in 2012 the Bank has signed a project to improve water supply and wastewater treatment in the city of Kara-Balta, implemented a tender to purchase new trolleybuses in Bishkek and opened the co-financed Osh-Isfana road to improve regional infrastructure.

Since 2009 EBRD started investing in such priority projects as rehabilitation of water supply, solid waste and urban transport development in the cities of Bishkek, Osh, Jalalabat and other smaller cities of the country. To date 11 infrastructure projects have been signed and under implementation totaling to EUR 115.8 million, from which EUR 51.5 million are loans and EUR 64.3 million are grants provided from own EBRD resources and resources of different partner donors such as SECO, EU IFCA, GEF and others. In addition EBRD provided USD 35 million for rehabilitation of Osh-Isfana trans-border road, this project was completed and the road was opened in the end of 2012.

The Bank has also assisted the Kyrgyz Government’s adoption of the EU Directive on Energy Performance of Buildings, bringing standards in the country in this area in line with other EU member states. The Bank engaged in policy dialogue as well providing software tools, training modules and capacity building support to help in this achievement and the legislation means Kyrgyz Republic becomes the first CIS country to adopt EU best practice in this area. The measures are expected to create a thriving new market in the country for energy efficiency in buildings and high performing sustainable energy technologies.

In 2015, the Bank will continue to provide technical assistance, policy dialogue and direct investment to improve the investment climate, develop local markets and strengthen governance throughout the country.

Country strategy
The EBRD’s main priorities in the Kyrgyz Republic, as defined in the country strategy (approved in 2011), are to foster the private sector, stabilize and develop the financial sector, support critical infrastructure and continue policy dialogue and technical cooperation in selected areas.

In developing the corporate sector the EBRD targets direct and co-financing with local banks to private businesses with the aim of increasing productivity, the production of higher value-added goods that can be competitive in foreign markets, raising business standards and improving energy efficiency. The Bank will also enhance small business support activities with a particular focus on the agricultural sector, particularly in rural areas.

In the financial sector, the EBRD will continue to focus on promoting stabilisation, intermediation and confidence-building by providing its partner financial institutions with targeted loans – where possible in local currency – to reduce financial institutions’ foreign exchange risks. It will also seek opportunities for co-financing road rehabilitation and regional and municipal infrastructure, including water supply, solid wastewater management and urban transport to cover more cities in the country.

Small Business Support
In Kyrgyz Republic, the Small Business Support (SBS) team is here to help small and medium-sized businesses grow, succeed, then grow again, becoming genuine catalysts for their local economies, then their region.

SBS connects their clients to local consultants and international advisers who can help transform a huge range of businesses. From the smallest looking to grow to those going global, SBS’s expert network of doers, thinkers and advisers help clients to step up and start thinking big.

SBS supports businesses from many industries, such as food and beverages, wholesale and retail distribution and construction and engineering. They don’t just work in the main cities. In fact, 69 per cent of projects are outside Bishkek.

Whether it’s a new website, a quality management system, a marketing strategy or even a completely new governance structure, SBS works with you to define the best project to fit your needs. Then, they support you through the whole process, using their years of experience to make sure the project achieves the best results. One year after every project, they return to measure the impact they made. And the results speak for themselves.

Within a year of a project:
  • 92 per cent of our clients in the Kyrgyz Republic increase their turnover – with a median increase of 40 percent – and 75 per cent improve their productivity, as they expand their business
  • 63 percent see significant job creation
  • 7 percent of our clients in the Kyrgyz Republic secure external funding to finance their growth.
Since starting work in the Kyrgyz Republic in 2005, SBS helped over 650 enterprises access advice, thanks to funding from Japan, Switzerland, the United States and the EBRD Shareholder Special Fund. Its work in the Kyrgyz Republic is currently funded by Japan, Switzerland, the United States and the EBRD Shareholder Special Fund.

For details of EBRD programs and activities worldwide, please visit EBRD central website
March 2015 - EBRD Country Factsheet 


Reginal Director of EBRD / Central Asia: Ms. Ayten Rustamova
Information contact: Kaliman Bayalieva, Assistant 

Business Centre Orion
21, Erkindik Boulevard, 4th Floor
720040 Bishkek
Telephone: (+996 312) 624 016, 624 017
Fax: (+996 312) 666 284 
Business Hours: 9.00-6.00 Monday-Friday