Kyrgyz Republic: Kyrgyz Emergency Support for Private and Financial Sector Project (AIIB-000423)

Countries
  • Kyrgyzstan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
Suerkul Abdybaly tegin, Deputy Minister of Finance
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jul 20, 2020

Disclosed by Bank Jul 9, 2020


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Project Description

PROJECT OBJECTIVE

AIIB provides financial support Kyrgyz Republic in order to support Micro, Small and Medium Enterprises (MSMEs) in response to and during the recovery from the COVID-19 crisis.

PROJECT DESCRIPTION

The project will be jointly co-financed with the World Bank (WB), as the lead co-financier, and will be comprised of:

  • Component 1: Reimbursable Financial Assistance (RFA) to Micro, Small and Medium Enterprises (MSMEs) via financial institutions selected to serve as disbursement administrators.
  • Component 2: Partial Portfolio Risk Sharing Facility (PRSF), offering a fee-based partial credit guarantee to share part of the credit risk in MSME credits from eligible Participating Financial Intermediaries (PFIs). The facility will offer guarantees on a portfolio basis, and all eligible MSME credits from the PFIs will be included automatically in the facility.
  • Component 3: Project Implementation, Coordination and Management.

AIIB will co-finance with the WB sub-components1.2 and 2.1, and component 3.

 

ENVIRONMENTAL AND SOCIAL INFORMATION

The project will be co-financed with the WB, and its environmental and social (ES) risks and impacts have been assessed in accordance with the WB's Environment and Social Framework (ESF). To ensure a harmonized approach to addressing the ES risks and impacts of the project, and as permitted under AIIB's Environmental and Social Policy (ESP), the WB ESF will apply to the project in lieu of AIIB's ESP. AIIB has reviewed the WB ESF and is satisfied that: (a) it is consistent with AIIB's Articles of Agreement and materially consistent with the provisions of AIIB's ESP, including the Environmental and Social Exclusion List, and the relevant ES Standards; and (b) the monitoring procedures that are in place are appropriate for the project.

 

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)
Contact Information

ACCOUNTABILITY MECHANISM OF AIIB

In addition, the AIIB has a Bank Oversight Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.

IMPLEMENTATION AGENCY

Bermet Musakozhoeva

Director, Project Implementation Unit at the Ministry of Finance

b.musakozhoeva@piu.kg