The State Development Bank has launched a $55 million program to provide preferential financing for “green” businesses

The State Development Bank of Kyrgyzstan has launched a sustainable financing program for micro, small, and medium-sized enterprises. “Bank of Asia” became the project’s first partner, and an agreement to provide financing was signed with the bank on June 25.

The program is being implemented under an agreement between the World Bank and the Ministry of Finance of Kyrgyzstan. The State Development Bank is set to receive $55 million in financing under the project.

The signing of the agreement with Bank of Asia marked the first practical step toward launching the wholesale financing mechanism. Under this model, the State Development Bank provides funds to commercial banks and microfinance organizations, which then extend loans to small and medium-sized businesses on preferential terms.

Funding will be available to enterprises implementing projects in the areas of the “green” economy, energy efficiency, and resource conservation. The funds are planned to be directed toward the installation of solar panels and other renewable energy facilities, the implementation of energy-efficient equipment, the modernization of production facilities to reduce water, electricity, and fuel consumption, as well as projects aimed at reducing harmful emissions and environmental pollution.

“This is the first practical step toward launching a systematic mechanism for financing green investments in the country. Through partner financial institutions, small and medium-sized businesses will gain access to long-term financing for the implementation of energy-efficient technologies, renewable energy sources, and environmentally sustainable solutions. This will enhance business competitiveness and the quality of economic growth,” said Emil Takyrbashev, Chairman of the Board of the State Development Bank.

According to the State Development Bank, the program is designed to expand businesses’ access to preferential financing, accelerate the modernization of production facilities, reduce the economy’s energy intensity, minimize negative environmental impacts, and create new jobs.