Bai-Tushum Bank and the EBRD sign $4 million loan agreements

Bai-Tushum Bank and the European Bank for Reconstruction and Development (EBRD) have signed loan agreements for the amount of USD 4 mln., contemplating the funding of energy efficient projects under the Kyrgyz Sustainable Energy Financing Facility (KyrSEFF), as well as lending to small and medium business. The agreements provide for technical consultations rendered to Bai-Tushum Bank by the EBRD, which are funded with donor money, allocated by the Investment Facility for Central Asia (IFCA) of the European Union.

“Bai-Tushum Bank signed two loan agreements with the European Bank for Reconstruction and Development. The small and medium business finance agreement will promote this segment financing, including in country regions, where the Bank is represented. A new line of development which is to employ the loan proceeds received under the second agreement with the Kyrgyz Sustainable Energy Financing Facility (KyrSEFF+), will encompass the funding of energy and resource saving projects. These will be the projects aimed at the installation of disposal facilities, water saving systems, renewable energy resources production and waste disposal equipment. Undoubtedly, this area will efficiently promote the increased energy efficiency of households and enterprises, as well as environment improvement”, - pointed out Gulnara Shamshieva, General Manager of Bai-Tushum Bank.

Over 4 years of cooperation between Bai-Tushum Bank and the Kyrgyz Sustainable Energy Financing Facility (KyrSEFF), more than 190 energy and resource efficient projects for the total amount of more than KGS 106.9 mln. have been financed. The clients borrowing loans were represented by individuals, who built energy efficient houses or simply installed windows, insulated floor and ceiling, as well as by major construction companies and agricultural producers, which organized greenhouses. It is important to emphasize that the Kyrgyz Sustainable Energy Financing Facility (KyrSEFF) efficiently combines consultancy, financial and grant components, being a good incentive for those willing to invest in energy efficient and renewable energy sources projects. The amount of grants disbursed during this time exceeded KGS 18.6 mln. The grants and consultations are funded with donor money, allocated by the Investment Facility for Central Asia (IFCA) of the European Union.

The Bank’s Energosaramjal product launched in cooperation with KyrSEFF contemplates the funding for the installation of energy saving windows, ovens, high efficiency gas vessels working on biomass or solid fuel, solar water heaters, purchase of heat pumps, insulation of walls, roofs and floors for comfortable environment in houses and apartments. In addition, this product finances the enterprises, which purport to upgrade the production processes subject to energy efficiency, i.e. purchase new production equipment, repair or reconstruct buildings and structures, water treatment units, certified container water waste treatment units, irrigation systems collecting rain water and other resource saving technologies. Moreover, the product implies the funding of energy efficient materials and equipment manufacturers and suppliers.