OREANDA-NEWS. On February 15, 2008 Alliance Bank announced that it has received a loan of KZT 6,1 bln from the Entrepreneurship Development Fund (EDF) as part of the EDF’s new program to support small and medium-sized enterprises (SMEs), reported the press-centre of Alliance Bank.

The EDF, which launched its SME program on January 1, 2008, is part of a Kazakh government initiative designed to support economic development in the country and to counteract the effects of the global market turmoil on Kazakhstan’s economy. It granted the loan to Alliance Bank within the framework of a partnership agreement dated Dec6, 2007 between the Kazakh government, Kazakhstan Development Fund, Kazakhstan Mortgage Company and seven Kazakh banks, including Alliance.

Alliance Bank will use the EDF loan to finance SMEs in the industrial, service and trade sectors, providing loans up to 140 mln tenge for a period of up to 5 years.

“We are glad to take an active role in the initiative, led by the government, to support the SME sector. Due to these loan proceeds, we can wider expand our loan program,” said Saule Rakhmetova, Director of the bank’s SME Department.

The SME sector remains a priority for Alliance Bank along with the retail business. Its SME loan portfolio increased by 76% or KZT34,537 mln in 2007 to KZT80,104 mln as of January 1, 2008, and comprises 9% of the bank’s total loan portfolio.