Granit Yug, a Kyrgyz company that specialises in quarrying and processing decorative stone, has weathered an earthquake, avalanches and political upheaval since its creation in 2001. Now it is seeking to increase production and exports to Kazakhstan and Uzbekistan by purchasing a fleet of trucks and processing equipment with the help of a loan.
The EBRD is providing half of the US$ 500,000 (€413,000 equivalent) loan from the Kyrgyz Investment and Credit Bank (KICB) through the Medium Sized Co-Financing Facility (MCFF), which co-finances up to 50 per cent of loans extended by partner banks.
Loans to companies like Granit Yug constitute part of the EBRD’s strategy to support SME development. In the early transition countries, the MCFF is supported by donors to the ETC Fund who finance training programmes for credit officers from partner banks. The loan is also part of a programme with the EU Investment Facility for Central Asia (IFCA) to strengthen small and medium-sized enterprises in Central Asia.