Fw: IFC Support for Micro and Small Businesses in Central Asia

----- Original Message -----
From: "Dennis McConnell" <[email protected]>
To: <[email protected]>
Sent: Monday, August 26, 2002 5:24 PM
Subject: IFC Support for Micro and Small Businesses in Central Asia


> The World Bank Web Update Newsletter today includes an interesting
> announcement about International Finance Corporation (IFC) support for
> Small Businesses in Central Asia. The information is presented below. I do
> not have complete details at the moment, but I will forward more
> information when it becomes available.
>
> If you would like to received the World Bank Web Update newsletter, you
> need only send a blank e-mail message to:
[email protected]
> To see other World Bank newsletters, visit:
> http://www.worldbank.org/subscriptions/
>
>
> Boosting Small Businesses in Central Asia
> IFC Supports $155 Million Initiative to Promote Micro and Small Businesses
> in Central Asia
>
> August 20, 2002. In an ambitious initiative that will support micro and
> small enterprises (MSE's) in four countries of Central Asia, the
> International Finance Corporation, the private sector development arm of
> the World Bank, will provide up to US$45 million for local banks to lend
to
> MSE's in Kazakhstan, the Kyrgyz Republic, Uzbekistan, and Tajikistan. The
> European Bank for Reconstruction and Development will provide $107 million
> for this same program, with the Swiss Secretariat for Economic Affairs
> (SECO) contributing $3 million, providing a substantial boost to the local
> banking sector.
>
> This new EBRD-IFC program will help bridge the gap between local banks and
> MSE's, which are currently underserved by existing financial institutions.
>
> "This new program will enable local banks to offer reliable, affordable
> sources of credit and other banking services that are essential to MSE
> growth." Khosrow Zamani, IFC's Director for Southern Europe and Central
> Asia said. "Small business growth is critical to Central Asia's economic
> development."
>
> Recent economic reforms and privatizations in Central Asia have led to
> significant numbers of public sector lay-offs, adding urgency to the need
> to create a strong private sector. Currently, MSEs play a prominent role
in
> Central Asia's private sector.
>
> Selected banks that employ the credit facility will benefit from a
> comprehensive Technical Assistance program that will strengthen their
> lending and operational capacity.
>
> The investment reflects an important aspect of IFC's global microfinance
> strategy: providing support for commercially viable microfinance
> activities. IFC believes that well-managed microfinance institutions can
> and should be commercially viable so that financial services can be
> provided to the underserved over the long term, resulting in a substantial
> and sustainable increase in the volume and range of financial services for
> microenterprises.
>
> More than 500 million poor people around the world run profitable
> microenterprises and often cite credit as the primary constraint to
> business growth. In the poorest countries, these activities constitute the
> private sector generating jobs and resources for services crucial to
> poverty reduction, especially for women.
>
> Useful links: For more information on the IFC's work in small and medium
> enterprises, please visit:
> http://www.ifc.org/sme/
>
>
> ------------------------------------------------------------------
> Dr. Dennis McConnell            Tel:  +1.207.581.1988
> Maine Business School          Fax: +1.207.581.1956
> University of Maine               ------------------------------
> Orono, Maine 04469 USA     E-Mail: [email protected]
> -----------------------------------------------------------------
>
>