CJSC MFC Bai Tushum & Partners becomes the first microfinance institution in Kyrgyzstan to obtain a deposit license
Bai-Tushum & Partners has been operating in the Kyrgyz Republic for more than 10 years. On July 15 2011, Microfinance company Bai Tushum & Partners became the first microfinance institution to obtain a deposit license. Used initially as a tool to promote poverty reduction and job creation, microfinance in Kyrgyzstan today entered a new stage of dynamic development by launching an important product – deposits.
Bai-Tushum & Partners has successfully reached the stage of sustainable development and active foreign capital attraction and has been implementing its social mission through its daily work and will continue to expand its product line, through offering a deposit service, in order to penetrate underserved regions. By launching a deposit product, Bai Tushum & Partners aims to increasing the level of financial literacy in rural areas, as well as develop a culture of savings in the Kyrgyz Republic where, until recently, people were not experienced in allocating spare cash funds to deposit accounts. Upcoming deposit products have been developed by taking into consideration customer needs and the seasonality of businesses in rural areas.
“By receiving a deposit-taking license Bai-Tushum & Partners will become the first microfinance company in the country that expands financial services to the poor and make significant contribution to financial inclusion goals,” said Rolf Behrndt, Regional Business Line Leader Financial Markets of IFC Advisory Services in Eastern Europe and Central Asia. “IFC works with selected microfinance institutions in Central Asia and the National Bank of the Kyrgyz Republic to help increasing access to finance for underserved population and enabling to improve the legal framework.”
It is noted that the provision of lending services represents only one method to support small entrepreneurs in regions. The most important components of microfinance are to understand the needs of the people engaged in small and medium enterprises, as well as to educate individuals about the importance of savings.
“Financial literacy of people living in rural area is still low – in regions there is no culture of savings. Our primary objectives are to teach people to manage their cash flows in proper way and to save money in order to implement their future plans. I would like to note that savings is one of the most important tools within microfinance to overcome poverty. It is necessary to know how to plan your expenses in relation to the education of children, medical treatments, vacations and just having a “guaranteed airbag” in case of emergencies,” said Gulnara Shamshieva, General Manager of CJSC MFC Bai-Tushum & Partners.
The CJSC MFC Bai-Tushum & Partners has been operating in the micro lending market since 2000, having started its activities in 1997 as an international project within the monetization program Food for Progress conducted by the US NGO ACDI/VOCA. Today Bai Tushum & Partners is one of the leaders of the microfinance sector, being one the three largest microfinance institutions in the Kyrgyz Republic. Among partners of the Company are International Finance Corporation (IFC), USAID, European Bank for Reconstruction and Development, GiZ, Blue Orchard S.A., Symbiotics S.A, Oiko Credit, Triple Jump, Developing World Market, Frontiers, Global Microfinance Facility and Hivos Triodos Investment. The mission of the CJSC MFC Bai Tushum & Partners is to contribute to the economic development of the Kyrgyz Republic through the delivery of microfinance services in rural and urban areas that lead to increased employment and meet the interests of both clients and investors.