The European Bank for Reconstruction and Development (EBRD) has announced a new financing package of up to $25 million for Demir Kyrgyz International Bank to strengthen trade, promote green investment, and support business growth in the Kyrgyz Republic. The initiative aims to enhance economic resilience while addressing climate-related challenges facing the country.
The funding package is structured to support both environmental sustainability and international trade. A major portion, a senior loan of up to $20 million, will be provided under the Kyrgyz Republic’s Green Economy Financing Facility III. This financing will help businesses and households invest in climate-resilient technologies, reduce pollution, improve water efficiency, and strengthen adaptation to climate change impacts.
The green financing component is expected to be made available in either US dollars or synthetic local currency (Kyrgyz som), helping borrowers manage currency risks while encouraging investment in sustainable solutions. The program is designed to improve environmental performance and promote resource efficiency across multiple sectors of the economy.
In addition, the EBRD is increasing Demir Bank’s trade finance limit by up to $5 million under its Trade Facilitation Programme. This support will help domestic businesses import essential goods, services, and equipment while also facilitating exports, thereby strengthening Kyrgyzstan’s integration into global trade networks.
The Trade Facilitation Programme reduces risks for international transactions by providing guarantees to confirming banks, enabling smoother cross-border trade flows. This is expected to improve access to global markets for Kyrgyz businesses and enhance overall economic competitiveness.
Demir Kyrgyz International Bank, the country’s first bank with international ownership and foreign capital, has been an EBRD partner since 1997. The institution plays a key role in expanding access to finance for local businesses and supporting private sector development.
The EBRD has been active in the Kyrgyz Republic since 1992 and has invested nearly €1.16 billion across 287 projects. Its portfolio in the country focuses primarily on sustainable infrastructure, private sector development, and green economic transformation.
The new financing package reflects the Bank’s continued commitment to promoting green growth, improving trade connectivity, and strengthening financial systems in Central Asia.
