The EBRD will allocate 200 million euros for the development of youth business in Central Asia
The European Bank for Reconstruction and Development (EBRD) has launched a program aimed at developing youth business in Central Asia and Mongolia. This is reported on the EBRD website.
The measure is designed to provide better access to finance and appropriate training for young entrepreneurs in a region where up to a third of the population is between the ages of 18 and 34.
The seven-year Youth in Business Program in Central Asia (YiB CA) will focus on micro, small and medium-sized enterprises (MSMEs) headed or owned by young people under the age of 35. It will include 200 million euros ($218 million) for subsequent lending and will attract up to 20 partner financial institutions in Central Asia and Mongolia. The program participants will also be provided with training, consulting services and participation in thematic events.
The EBRD's investments will be complemented by a package of up to 30 million euros, consisting of grants and concessional co-financing to stimulate inclusive lending and youth entrepreneurship.
The first loan agreements under the MB CA will include: a loan of up to 10 million US dollars to the largest private bank of Uzbekistan, Khamkorbank, a loan of up to 8 million US dollars to Shinhan Bank of Kazakhstan, a loan of up to 4 million US dollars to Mongolia’s leading micro-lender Transcapital and a loan of up to 2 millions of US dollars – Kazakhstan microfinance organization “Arnur Credit”.
According to EBRD experts, this is very important for Central Asia, where MSMEs account for almost half of total employment and almost 40% of regional GDP.
Grant support and concessional financing for the program are provided by the Government of Kazakhstan, the Small Business Assistance Fund and the European Union.
The EBRD is a leading institutional investor in Central Asia. To date, it has provided about 19 billion euros in more than 1,000 projects.
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