Damu Entrepreneurship Development Fund JSC and European Investment Bank (EIB) signed an additional contract to the existing credit line for 200 million euros to support business in Kazakhstan during the coronavirus pandemic.
According to the terms of the deal, Damu Fund attracts financing from EIB on market terms for the subsequent provision of funds to micro, small and medium-sized enterprises (MSMEs) in all regions of Kazakhstan without sectoral restrictions on lending.
Gaukhar Buribayeva, Damu Fund’s Chairwoman of the Board, noted: “Certainly, the cooperation of Damu Fund with the world's largest financial institution, the European Investment Bank, creates additional conditions for supporting Kazakhstan’s entrepreneurs. We expect that the implementation of the project will increase the volume of lending to MSMEs and create additional jobs.”
Initially, the program was aimed at the development of projects that mitigate the effects of climate change, however in order to support businesses to overcome the consequences of the COVID-19 pandemic, a conceptual decision was made for re-purposing without the green component. This initiative provides an opportunity to improve access to financing for the MSMEs.
The funds are planned to be placed in Kazakhstan’s banks and microfinance organizations in the first half of 2021.
Background information: European Investment Bank (EIB) was established in 1958 and is a lending institution of the European Union. It is the biggest multilateral financial institution in the world and one of the largest providers of climate finance. The EIB's investment activities in Kazakhstan are regulated by the Framework Agreement concluded between the Republic of Kazakhstan and the European Investment Bank in 2010.