Bishkek, Kyrgyz Republic, July 14, 2022—IFC is providing a financing to microfinance company Bailyk Finance in the Kyrgyz Republic to boost affordable housing finance and improve access to finance for women-owned small businesses.
IFC’s $2.5 million loan to Bailyk Finance will be split equally between housing and women-owned small businesses to help address the financing gaps for both. The gap for micro, small, and medium enterprises (MSMEs), including those owned by women, in the Kyrgyz Republic is estimated at $1.4 billion, equivalent to 21 percent of GDP. Moreover, housing finance is scarce for many low-income households, especially in rural areas.
This is IFC’s first loan to a Kyrgyz microfinance institution to support women MSMEs and housing - with energy-efficient components - in rural areas. It is being provided through currency swaps with the Local Currency Facility of the International Development Association’s Private Sector Window.
“We have been cooperating with IFC since 2014 on a number of advisory projects, including agribusiness and housing finance, but this is our first credit line from the corporation, which indicates a high level of trust. We hope that together we will increase the inclusiveness of housing loans with energy efficiency components for our clients, as well as make financing more accessible for women entrepreneurs,” said Chinara Moldazhanova, General Director of Bailyk Finance.
The investment is in line with the World Bank Group’s Country Partnership Framework for the Kyrgyz Republic, which outlines financial inclusion as a key priority. IFC’s strategy is to partner with banks and microfinance institutions to boost access to finance for private sector businesses, and particularly MSMEs.
“Our financing will enable low-income families to build new homes and renovate existing ones, thus improving their quality of life. It will also help micro and small businesses, including women-owned microenterprises, which often lack access to affordable financial products and services, to pursue economic opportunities, invest additional capital, hire more employees, and grow their businesses,” said Cassandra Colbert, IFC Senior Manager, Central Asia.
Bailyk Finance has been a partner of IFC’s advisory program on financing the micro-housing sector and promoting sustainable energy in the Kyrgyz Republic for over seven years. More than 24,000 families have improved their living conditions through the program.
About Bailyk Finance LLC
The Company has been on the market for 11 years and is currently the third-largest microfinance company in Kyrgyzstan, serving more than 45,000 clients throughout the country, about 58% of whom are women and 81% are residents of rural areas. For more information, visit https://bf.kg/
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About the IDA Private Sector Window
As part of the 19th replenishment of the International Development Association (IDA), the World Bank Group is continuing the IDA Private Sector Window (PSW) created under IDA18 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA’s objectives and the World Bank Group’s twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution and the World Bank Group’s other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
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