IFC, Bai Tushum Bank Expand Access to Finance in Kyrgyz Republic
IFC, a member of the World Bank Group, is providing a $4 million local currency-linked loan to Bai Tushum Bank to help expand financial products and services to the country’s small and medium enterprises (SMEs), assisting job creation and boosting economic growth.
Enhanced by advisory support, IFC’s financing will help Bai Tushum Bank scale up its lending to SMEs, which represent 40 percent of the Kyrgyz GDP and 60 percent of all jobs. This will better position the bank to help entrepreneurs develop sustainable businesses and create jobs, especially in remote and rural areas and among SMEs owned by women.
“IFC’s support has been important for us to deploy our growth strategy, which is focused on expanding our operations into the SME segment,” said Gulnara Shamshieva, CEO of Bai Tushum Bank. “Financing from IFC will enable us to expand lending to SMEs, which are key segment of economic development in the country, helping them grow their businesses and create more jobs.”
Edward Strawderman, Associate Director, Europe and Central Asia, of IFC’s Financial Institutions Group, said: “This investment agreement with Bai Tushum Bank is part of IFC’s effort to stimulate entrepreneurship and SME growth. IFC’s financing and expertise in SME banking will help Bai Tushum Bank build a sustainable and profitable business servicing SMEs, strengthen its competitive line of products, and grow sustainably.”
IFC and Bai Tushum Bank also signed an agreement that will help the bank manage currency risks and facilitate local currency lending.
Bai Tushum Bank, a long-time IFC investment and advisory client, received a banking license in November 2012. IFC, through its advisory services, helped Bai Tushum Bank transform from a microfinance organization into a commercial bank.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.
About Bai-Tushum Bank
Over the past 13 years, the organization has grown into one of the leading financing institutions in the Kyrgyz Republic, with total assets of over $132 million. Today, Bai-Tushum Bank is the seventh largest bank in the Kyrgyz Republic serving over 32,000 clients. The Bai-Tushum Bank provides a complete range of financial services to entrepreneurs and individuals throughout the country. The Bank implements best international banking practices, promoting transparency in the financial sector and enhancing trust in the banking system. Today the branch network comprises 7 branches, 46 outlets and 10 representative offices. For more information, visit www.baitushum.kg.