Rural Financial Inclusion for Women Project

Kyrgyz Republic: Rural Financial Inclusion for Women Project

Project Name

Project Number

53319-001

Borrower / Company

CJSC FINCA Bank
KYRGYZ INVESTMENT AND CREDIT BANK

Country / Economy

Kyrgyz Republic

Location

Nation-wide

Type or Modality of Assistance

3898

Loan

Ordinary capital resources

USD 0.00

Cancelled

Operational Priorities

OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP5: Promoting rural development and food security

Sector / Subsector

Finance / Inclusive finance

Gender

Gender equity

Responsible ADB Department

Private Sector Operations Department

Responsible ADB Division

Private Sector Financial Institutions Division

Responsible ADB Officer

Rohner, Tina

Project Sponsor(s)

Description

CJSC FINCA Bank decided not to proceed with the project due to impact of COVID-19 on the Kyrgyzstan economy and their ample liquidity.

Objectives and Scope

The transaction entails the Asian Development Bank (ADB) providing medium-term financing in som to CJSC Finca Bank (FBK) to support micro and small enterprise lending targeting women in rural areas. The Technical Assistance (TA) to FBK will focus on building its branchless agent network in rural areas targeting hitherto unserved lower-income clients, with a specific focus on improving financial literacy and access to finance for women. The TA to NBKR will support banking introduction of Basel III prudential norms in the Kyrgyz Republic.

Linkage to Country/Regional Strategy

The transaction is consistent with government efforts to promote the well-being of its citizens and ADB's country partnership strategy, 20182022 for the Kyrgyz Republic. This project contributes to ADB's efforts to achieve Sustainable Development Goal 5: achieving gender equality and empowering all women and girls.

Safeguard Categories
Environment	FI-C
Involuntary Resettlement	FI-C
Indigenous Peoples	FI-C

Summary of Environmental and Social Aspects
Environmental Aspects	FBK has in place an ESMS commensurate with the impacts and risks of its borrowers' activities in accordance with ADB''s Safeguard Policy Statement (2009) SPS requirements for financial intermediaries. FBK will revise its exclusion list in line with ADB''s PIAL and apply to all potential borrowers' applications. It will establish procedures to categorize borrower's activities according to ADB's SPS requirements in addition to its current social and environmental risk analysis, which already includes review against national environmental impact assessment requirements.
Involuntary Resettlement	FBK sub-borrowers will be individuals borrowing funds for their business needs. Such loan finance cannot fund compulsory acquisition of land by government expropriation. Involuntary resettlement impacts through use of facility funds are therefore not anticipated.
Indigenous Peoples	FBK sub-borrowers will be individuals borrowing funds for their business needs. This activity is not expected to directly or indirectly affect the dignity, human rights, livelihood systems, or culture of any ethnic minority or Indigenous Peoples groups.
Stakeholder Communication, Participation, and Consultation	Potential borrowers will participate through extensive market research activity already undertaken by FBK in determining the most appropriate lending products. FBK has extensive national networks of branches and is building up an agent service network through which to engage and empower beneficiaries. Participation plans will not be prepared as FBK maintains strong public profiles through its branch presence and marketing that allow each of them to actively participate with civil society.

Timetable for assistance design, processing and implementation
Concept Clearance	29 Oct 2019
Credit Committee Meeting	20 Dec 2019
Approval	24 Mar 2020
Last PDS Update	02 Feb 2021

Project Page	https://www.adb.org//projects/53319-001/main
Request for Information	http://www.adb.org/forms/request-information-form?subject=53319-001
Date Generated	06 June 2023

ADB provides the information contained in this project data sheet (PDS) solely as a resource for its users without any form of assurance. Whilst ADB tries to provide high quality content, the information are provided "as is" without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, and non-infringement. ADB specifically does not make any warranties or representations as to the accuracy or completeness of any such information.