OREANDA-NEWS. November 19, 2009. DEG (Deutsche Investitions und Entwicklungsgesellschaft, Cologne, Germany, a member of KfW banking group) and KICB (Kyrgyz Investment and Credit Bank, Bishkek, Kyrgyz Republic) signed an agreement for a credit line amounting to USD 10 million. The signing ceremony took place in Dubai, UAE, reported the press-centre of KICB.
 
The signed Agreement is a result of discussions held between KICB and DEG in the field of private sector financing. The agreement was signed by the Chief Executive Officer of KICB, Mr. Kwang-Young Choi, and the Vice President of DEG, Ms. Birte Borning.
 
According to the terms of the agreement, DEG will provide KICB with a credit line of USD 10 million over 5 years. As a result, private small and medium-sized enterprises (SMEs) will be given an opportunity to access medium and long-term financing for eligible projects. Funds would be allocated towards the creation, modernization, expansion and diversification of industrial and production facilities (including in the agriculture, transport, construction and service industries).
 
Today, KICB is the pioneer and one of the leaders in providing medium and long-term financing to the private sector in the Kyrgyz Republic. As of October 30th, 2009, KICB’s loan portfolio exceeded USD 57.5 million. The bank holds Total Assets of more than USD 96 million and has a Shareholder Capital above USD 22 million. KICB continues to focus its credit activities on supporting sustainable private sector companies enabling poverty alleviation and economic growth of Kyrgyz Republic. Having achieved solid results in building a strong credit portfolio thus far, KICB targets its credit portfolio to cross over USD 61 million by the end of 2009.
 
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DEG, a member of KfW banking group, is one of the largest European development finance institutions for long-term project and company financing. For more than 40 years, DEG has been financing and structuring the investments of private companies in developing and transition countries. DEG invests in profitable projects that contribute to sustainable development in all sectors of the economy, from agriculture to infrastructure and manufacturing to services. The aim of DEG is to establish and expand private enterprise structures in developing and transition countries, and thus create the basis for sustainable economic growth and a lasting improvement in the living conditions of the local population.

KICB was established in 2001 with the largest share capital at the time of USD 7 million. The bank’s shareholders are world-renowned financial institutions (90%) and the Kyrgyz Republic (10%). International shareholders include Aga Khan Fund for Economic Development (AKFED) - 21%, Habib Bank Limited (HBL) -18%, Deutsche Investitions und Entwicklungsgesellschaft GmbH (DEG) -17%, European Bank for Reconstruction and Development (EBRD) -17% and International Finance Corporation (IFC) - a member of the World Bank - 17%. KfW is a co-founder of the bank and also provides access to long-term financial resources.