Citibank Kazakhstan (CK, or the bank) is a fully licensed commercial bank. It offers to its resident and non-resident clients a complete range of banking products for domestic and cross-border operations in both Kazakh tenge and foreign currencies. CK has been based in Kazakhstan since 1994 and was fully incorporated in on May 12, 1998. As of December 31, 2002, the bank’s total assets stood at $349.8 million equivalent and the total capital equaled $54.8 million equivalent including the subordinated debt. The project involves the provision of long-term funding of up to $20 million to the Bank to support the expansion of its mid-term lending operations. Through this loan IFC will enhance the supply of much-needed finance to the local private sector. With the increased economic activity in Kazakhstan over the last two years, due to favorable oil prices and a stable economy, there is undoubtedly a substantially increased demand from companies for longer term financing. The proposed investment is therefore intended, although in a small way, to address this demand. A secondary benefit is that it will increase competitiveness in the country's banking system