The European Bank for Reconstruction and Development (EBRD) will provide new local currency loans, worth $1 million, in the Kyrgyz Republic to support energy improvements and water efficiency in the country's south under a new agreement signed Monday.
According to the Bank's announcement, the loans will be channeled to households by the First MicroCredit Company (FMCC).
The new loan is extended under the EBRD Kyrgyz Sustainable Energy Financing Facility.
The microfinance institution, FMCC, will finance investments for improvements such as the purchase and installation of energy-efficient windows and doors, thermal insulation of walls and roofs, installation of heat pumps and other measures to reduce energy and water costs.
FMCC, whose main shareholder is the Aga Khan Agency for Microfinance (AKAM), is active mostly in the southern areas of the Kyrgyz republic to support development projects, including microfinance in Central Asia.
The EBRD's first Vice President, Phil Bennett, said that under the Green Economy Transition initiative, the EBRD is keen to act as a catalyst in attracting partner financial institutions, including banks and microfinance companies, for sustainable energy and resource investments.
A total of $25 million has already been committed to energy efficiency projects in the country.
By Dilara Zengin
Anadolu Agency
dilara.zengin@aa.com.tr