The main sponsor is Bai Tushum, which is dedicated to the social and economic development of both rural and urban sectors of the Kyrgyz Republic through providing sustainable financial services to micro and small private entrepreneurs.

The project involves the extension of a convertible loan of up to US$1.2 million.

2.20 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	1.20
Equity	1.0

* These investment figures are indicative

Bai Tushum has its headquarters in Bishkek with branch offices and outlets located throughout Kyrgyzstan, including Osh, Jalalabat and Chui.

The developmental impact of Bai Tushum is expected to be high and far reaching in terms of its economic support for productive micro enterprises, stimulus for employment generation and confidence building for the financial sector. Microfinance in Kyrgyzstan and throughout Central Asia is in its early stages and there is ample opportunity for portfolio growth. In Kyrgyzstan, there are about 200,000 microentrepreneurs operating in sectors that represent a significant percentage of the country’s GDP. Bai Tushum’s main objective is the provision of financial services to underserved communities for poverty alleviation and employment creation. Bai Tushum also assists entrepreneurship development and social mobilization. As a result, this project is expected to reach an estimated 3,200 new microentrepreneurs during the tenor of the credit line through Bai Tushum’s three branch offices located around Bishkek. During Bai Tushum’s transformation, IFC will play a catalytic role in facilitating communication with the Kyrgyz government authorities and the NBK. Through its advisory role, IFC will play an ongoing role in the development of the proposed commercial entity by advising on its market-driven corporate governance and operations. Continued support from IFC is critical to the successful transformation of Bai Tushum. IFC will also play an important role in Bai Tushum’s ability to attract investors into the equity of the new microfinance institution and IFC’s conversion option would allow IFC to support Bai Tushum’s transformation to a sustainable financial institution.

This is an FI Type 1 project. Bai Tushum must require that investments under relevant operations meet host country environmental, health and safety requirements and be consistent with IFC’s microfinance exclusion list. IFC will assess Bai Tushum’s capacity for environmental review.
Location of environmental documents in locally affected community