Bishkek, Kyrgyz Republic, April 13, 2009—
IFC, a member of the World Bank Group, is investing $4 million in Bai Tushum to help the microcredit company create additional financial opportunities for about 10,000 microenterprises, private entrepreneurs, and farmers in remote areas of the Kyrgyz Republic.
Increasing access to finance for microenterprises is crucial for stimulating economic activities, creating jobs and reducing poverty. With IFC’s financing, Bai Tushum plans to expand its reach in underserved areas, reaching thousands of new microentrepreneurs across the country.
“This investment, our second long-term loan from IFC, will support our development plans and help us expand our loan portfolio,” said Gulnara Shamshieva, Bai Tushum’s CEO. “We will be able to create a wider range of financial products for underserved markets in the Kyrgyz economy.”
Shahbaz Mavaddat, Director IFC for Southern Europe and Central Asia, said: “The project reflects IFC’s strategy of strengthening local financial institutions and expanding access to finance in the Kyrgyz Republic, which that is the foundation for private sector growth.”
The Kyrgyz Republic joined IFC in 1993, and IFC’s commitments to the country have reached nearly $75 million. This includes $70 million in investments and $5 million in advisory services with a focus on microfinance, housing finance, corporate governance, and business environment.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster 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 $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
About Bai Tushum
Bai Tushum was established in 1997 with the support of U.S.-based Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance and CARITAS, a Swiss non-governmental organization. It provides microcredit services to private entrepreneurs, traders, farmers, and micro and small agricultural enterprises using individual and group lending methodologies. Bai Tushum has some 18,000 clients, with most of its portfolio outside the capital, Bishkek, The company operates through a regional network of seven branches and 35 sub-offices.
