Founders and history of establishment
«Bai – Tushum and Partners» Microfinance bank Closed joint-stock company has more than 12 year experience of successful activity as microfinance organization in the market of the Kyrgyz Republic.
History of organization begins since 1997 when the international project within the “Food for Progress” monetization program, United States Department of Agriculture (USDA) provided funds to the USAID project for creation of credit funds for farmers in the Kyrgyz Republic. By the end of the project, carried by American organization ACDI/VOCA, in October 2000 ACDI/VOCA and Caritas (Switzerland) founded the Financial Fund “Bai-Tushum” (hereunder – Fund), which served total 400 clients with 600 thousand US dollars loan portfolio for the registration moment.
In 2002 with the adoption of the law “On microfinance Organizations in the Kyrgyz Republic”, Fund was re-registered to the Microcredit Agency “Financial Fund “Bai-Tushum” and obtained a certificate of the National Bank of the Kyrgyz Republic to conduct microcredit activities.
In the status of Microcredit Agency, Fund actively carried out its activity till 2005. Then, in order to maintain the organization growth and to attract private investments, Fund made a decision of activity commercialization by creation of commercial affiliated company. In December 2005, it was registered affiliated “Microcredit Company “Bai-Tushum and Partners”, LLC (hereunder – Company), which also obtained a certificate of the National Bank of the Kyrgyz Republic to conduct microcredit activities. Thus, sole founder of Company was Microcredit Agency “Finance Fund “Bai-Tushum”, which hold 100% share of the authorized capital.
For the period of activity in the status of Microcredit Company (2006-2009) it was occurred substantial increase of loan portfolio – from 6.7 million US dollar to 38.1 million US dollar. It was raised authorized capital to 370 million KGZ som. Moreover, on the results of financial statement analysis in compliance with the International Financial Reporting Standards and CGAP requirements of information disclosure of International Audit Firm Moore & Stephens, Company “Bai-Tushum and Partners” became one of the 20 organizations, which meet requirements among 231 MFI out of 62 countries in the world, in 2007 MCC “Bai-Tushum and Partners” obtained license of NBKR for the right to provide financial leasing.
In 2009 Company was reorganized to Microfinance Company. Thus, it was changed legal form of business – from the Limited Liability Company to the Closed Joint Stock Company. In the same year, Triple Jump Company entered to the shareholders list.
There were introduced Compliance Control Department and Risk Management Department, as separate structural sub-divisions, and were opened additional branches, thus, organization covered 7 regions of Kyrgyzstan. It was provided analysis of mortgage operations with technical assistance of IFC, by results of which, Company completed procedures on disbursement of mortgage microcredits.
At the same time, the Company passed international rate assessment by Microfinanza Rating Company; to the results it received the high mark for its activities “A+”.
Main goal of this stage the Company development was the obtainment of license NBKR for carrying out deposit operations in order to diversification of funding sources of the Company, and further realization social mission, because provision of deposits, particularly, for the low-income clients is the major tool of poverty alleviation. License for the collecting deposits was obtained on July, 15, 2011.
In 2011, the Company Bai-Tushum and Partners raised its authorized capital to 615 million Som due to mobilization of the new international investors: Private Investment Fund Bamboo Finance and Microfinance Fund Credit Suisse Managing Company ResponsAbility Social Investments AG. In the same year “Bai-Tushum and Partners” became the first microfinance organization in Kyrgyzstan with deposit collecting license. In the end of 2011 organization started large-scale preparation to the Bank reorganization, which decision was made in 2005. By this time Company hold high capital, material and technical base, which is necessary for reorganization to the Microfinance bank, as well as qualified personnel.
On November, 14, 2012 “Bai-Tushum and Partners” became the first microfinance organization in the Central Asia to be awarded a full banking license from the National Bank of the Kyrgyz Republic, entering to the six large banks of the Kyrgyz serving over 30 thousand clients. On December 25, 2012 CJSC Microfinance bank “Bai-Tushum and Partners” was entered to the register of bank-participants of deposit protection system of the Kyrgyz Republic on # 23/12 on the basis of the order # 17 Deposit Protection Agency KR.
• ACDI/VOCA – is a private non-profit organization with a purpose of stimulating economic growth, increasing the standard of life and prosperity of society in the countries with low incomes and developing democracies. ACDI/VOCA develops and implements diversified economic development projects, distinguishing with a significant scale and high complexity, as well as occupies a leading position in its poverty combating sector. Innovating approaches used by institution in the area of providing food aid and financial services enable to optimize the existing resources in order to support economic development and meet the market’s requirements.
• CARITAS – is a Swiss non-profit institution for development and cooperation, which from 1995 to 2000 carried out activities for assisting agriculture development in Kyrgyzstan. Today it operates in more than 200 countries worldwide, with the basic objective of supporting the poorest population.