The loan will create financing options for underserved markets in the Kyrgyz economy, especially in remote cities and towns. Increasing access to finance in these areas is crucial for sustainable development of the country’s private sector, as well as for improving economic development and reducing poverty.

Kwang-Young Choi, CEO of the Kyrgyz Investment and Credit Bank, said, "Since its establishment, our bank has achieved good results in building a strong credit portfolio. With this loan from IFC, we will be able to further support sustainable private sector development," he said.

Lars Thunell, IFC Executive Vice President and CEO, said at the signing, "IFC is partnering with Kyrgyz banks to develop the country’s microfinance industry and expand access to credit for micro, small, and medium businesses. This will help the bank diversify its loan portfolio and grow stronger, while at the same time creating opportunities for people to grow their businesses."

IFC is a shareholder in the Kyrgyz Investment and Credit Bank with an equity stake of 17 percent. Other stakeholders include the Aga Khan Fund for Economic Development, Habib Bank Limited, Germany’s DEG and KfW, the European Bank for Reconstruction and Development, and the Kyrgyz government.

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional US$3.9 billion through syndications and structured finance for 299 investments in 69 developing countries.