New Green Finance Initiative for Micro, Small, and Medium Enterprises Takes Shape in Kyrgyzstan with WB

The Kyrgyz State Development Bank and World Bank experts have recently discussed the implementation of the “Developing a Sustainable Finance Market for Micro, Small, and Medium Enterprises (MSMEs)” project.

Approved by the World Bank’s Board of Executive Directors on April 18, 2025, the initiative seeks to foster sustainable economic growth by improving access to green finance, mobilizing private investment, and enhancing the capacity of local financial institutions, The Caspian Post informs via Kazakh media.

The project is backed by a $120 million loan from the World Bank and an additional $50 million loan from the Asian Infrastructure Investment Bank (AIIB), totaling $170 million in funding.

The project’s main components include:

Providing wholesale financing through local financial institutions to support green and sustainable investments by MSMEs.

Establishing a Green Finance Fund aimed at directing investments to environmentally responsible projects.

Introducing a green guarantee mechanism to reduce lending risks and encourage private sector participation.

Over the next five years, the initiative is expected to generate up to $148 million in private sector investments, helping to build a greener and more inclusive financial ecosystem.

Set to run through December 2030, the project will comply with international standards for procurement, financial management, and anti-corruption practices.

The World Bank has been a vital development partner for Kyrgyzstan since 1992, supporting the country’s shift to a market economy and expanding cooperation in infrastructure, healthcare, education, and private sector growth.