Increasing access to finance for microenterprises is crucial for stimulating economic activities, creating jobs and reducing poverty. With IFC’s financing, Bai Tushum plans to expand its reach in underserved areas, reaching thousands of new microentrepreneurs across the country.

“This investment, our second long-term loan from IFC, will support our development plans and help us expand our loan portfolio,” said Gulnara Shamshieva, Bai Tushum’s CEO. “We will be able to create a wider range of financial products for underserved markets in the Kyrgyz economy.”

Shahbaz Mavaddat, Director IFC for Southern Europe and Central Asia, said: “The project reflects IFC’s strategy of strengthening local financial institutions and expanding access to finance in the Kyrgyz Republic, which that is the foundation for private sector growth.”

The Kyrgyz Republic joined IFC in 1993, and IFC’s commitments to the country have reached nearly US$75 million. This includes US$70 million in investments and US$5 million in advisory services with a focus on microfinance, housing finance, corporate governance, and business environment.

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC’s new investments totaled US$16.2 billion in fiscal 2008, a 34 percent increase over the previous year.

Bai Tushum was established in 1997 with the support of US-based Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance and CARITAS, a Swiss non-governmental organization. It provides microcredit services to private entrepreneurs, traders, farmers, and micro and small agricultural enterprises using individual and group lending methodologies. Bai Tushum has some 18,000 clients, with most of its portfolio outside the capital, Bishkek, The company operates through a regional network of seven branches and 35 sub-offices.