EIB launches operations in Kazakhstan
- Release date: 18 February 2014
- Reference: 2014-032-EN
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The European Investment Bank (EIB) has launched its lending operations in Kazakhstan by extending two loans to banks operating in the country for projects promoted by Kazakhstan’s small and medium-sized enterprises and midcap companies, predominantly in the areas of climate change and environmental protection:
- EUR 120 million to Development Bank of Kazakhstan (DBK) and
- EUR 100 million to Sberbank Kazakhstan
Mr Wilhelm Molterer, EIB Vice-President responsible for lending operations in Kazakhstan, stated, “These first ever EIB loans granted in Kazakhstan will foster private sector development by improving the access of SMEs and midcaps to long-term finance. They will help implement projects that increase the sectoral diversification of the Kazakh economy. At the same time, the EIB funds provided on favourable terms will facilitate the application of Kazakhstan’s 2050 Strategy aimed at developing a sustainable and efficient economic model to further Kazakhstan's goal of becoming one of the world’s 30 most developed countries.”
The funds provided by the EIB will contribute to increasing the share of GDP generated by the SME sector, which currently stands at 18%. SMEs employ some 2.5 million people or 28% of the Kazakh workforce. In most OECD countries, SMEs represent around 95% of all companies and provide 70% of employment.
The loans correspond to the objectives of the EIB External Lending Mandate, which focuses on the development of the local private sector and social and economic infrastructure as well as climate change mitigation and adaptation. In keeping with these objectives, half of the loans will be dedicated to the financing of climate change mitigation and adaptation projects eligible under the EIB Climate Change Mandate.
The EIB is regularly awarded the best possible rating (“AAA”) by the leading rating agencies. As a result, the Bank can raise funds on the world’s financial markets on very favourable terms. The EIB is a non-profit-oriented institution and passes on these favourable terms to its customers.