IFC provides USD 5 million loan equivalent in Kazakhstani tenge to KazMicroFinance to increase access to finance for the country’s more than 80,000 entrepreneurs. It will also sign an agreement with the MFI to help the company manage its foreign currency and interest rate risks. While the number of MFIs in Kazakhstan has grown in recent years, the microfinance market remains small, comprising just one percent weight of the aggregate credit portfolio of the country and representing significant room for growth.
“It is crucial that low-income people and micro and small medium enterprises in Kazakhstan have access to finance, so they are able to create opportunities for themselves and others. With IFC’s support, we plan to expand into areas where the need for microfinance is highest,” said Shalkar Zhussupov, KazMicroFinance’s CEO. “IFC supports the development of microfinance in Kazakhstan to spur economic growth and generate much-needed job opportunities. This loan will help KazMicroFinance to expand and reach more under-served clients in a sustainable manner,” said Edward Strawderman, Regional Head of Industry, IFC EMENA Financial Institutions Group.