Published
03/11/2026, 16:20The Asian Infrastructure Investment Bank (AIIB) and the Government of the Kyrgyz Republic have signed an agreement to provide a sovereign loan of 7.36 billion Japanese yen as part of the “Development of a Sustainable Finance Market for Micro, Small, and Medium-sized Enterprises (MSMEs)” project. This was reported by the bank's press service.
The initiative aims to expand access to sustainable finance and increase the resilience of the MSME sector across the country. The financing is part of a broader $170 million program implemented jointly with the World Bank Group's International Development Association.
The project aims to support the green and sustainable transition of micro, small and medium-sized enterprises, as well as to increase their climate resilience. To this end, it is planned to mobilise private capital for green and sustainable investments by MSMEs, as well as to strengthen the capacity of financial intermediaries to facilitate the transition of businesses to a low-carbon development model. Key elements of the initiative include expanding wholesale financing through local financial institutions, which will simplify MSME access to credit resources, supporting the creation of a Green Finance Fund, and a risk-sharing guarantee mechanism that encourages lending to environmentally sustainable enterprises. These measures are aimed at reducing credit risks, expanding financial accessibility, and creating a favorable environment for sustainable business development.
“The micro, small, and medium-sized enterprise sector of the Kyrgyz Republic plays an important role in the national economy, providing employment, stimulating innovation, and contributing to economic diversification,” said Almaz Baketaev, Minister of Finance of the Kyrgyz Republic.
It is noted that strengthening the sustainable finance market and developing financial intermediation will expand enterprises' access to capital for projects in energy efficiency, renewable energy, green construction, and other climate-oriented investments.
“The AIIB's support for the development of the sustainable finance market in the Kyrgyz Republic confirms our commitment to providing long-term wholesale financing and mobilizing private capital for climate-friendly development,” said Konstantin Limitovsky, IBRD Investment Director, Public Sector (Region 2) and Project and Corporate Finance Clients (Global Region). “This project will strengthen financial intermediaries and expand opportunities for MSMEs to implement green investments that contribute to long-term climate resilience and inclusive economic growth.”
With this project, the total amount of IBRD loans approved for the Kyrgyz Republic has reached $150 million, in addition to $12.87 million in grant financing provided by the Bank for technical assistance and interest rate subsidies. Earlier, the AIIB approved the Universal Access to Water Supply and Sanitation Project, which will provide climate-resilient water supply and sanitation services to hundreds of thousands of residents of Chui, Issyk-Kul, and Osh regions, as well as the Emergency Support Project for the Private and Financial Sectors of the Kyrgyz Republic, aimed at addressing liquidity challenges for small and medium-sized enterprises.
The Kyrgyz Republic is a founding member of the AIIB. The Bank continues to support the development of both physical and financial infrastructure, which forms the basis for inclusive and sustainable economic growth in the country.
