Bank CenterCredit OJSC (Kazakhstan) about collaboration with EBRD on the program of Kazakhstan small business

/IRBIS, April 9, 03/ - Bank CenterCredit OJSC (Almaty) has spread press- release, which says that in this year is the fifth year of its collaboration with European bank of reconstruction and development (EBRD) within the framework of the program of Kazakhstan small business and the fifth year of the latter's presence at he market of small business crediting in the republic. Program of Kazakhstan small business started operating on March 18 of 1998 under Almaty City branch of Bank CenterCredit OJSC. During its realization entrepreneurs received and developed more than 1,300 credits in total amount of over $6.8 m. Five years of the Program's successful working allowed to continue this project. In the middle of March there was held meeting of Deputy Chairman of the Board of Bank CenterCredit OJSC Medet Rakhimbayev and EBRD's Regional coordinator of the Program of small business of Kazakhstan Haike Honnenberg, during which plans of the program expansion in 2003, in particular, increasing of credit line up to $6 m. and spreading of the program in 16 branches of the bank, were discussed, whereas at present 9 branches have been enacted. During the program's functioning EBRD's funds were given by three tranches for a total of $6 m., these funds were spent exceptionally for crediting objects of small and medium business. IT should be separately noted that small business program is realized without presenting any guarantees from outside of the government, the bank itself assumes all risks. In the beginning of 1999 the loan portfolio of Bank CenterCredit OJSC comprised 174 credits in the amount of more than $1 m., in the beginning of 2001 this data increased correspondingly to 600 credits and $3.3 m., as of beginning of April of 2003 the data was 1,300 credits in total amount of $7.6 m. The bank plans to increase the loan portfolio till the end of this year up to $14.5 m. As was noted by deputy chairman of the Board Medet Rakhimbayev, the history of collaboration with this international financial structure is very popular among subjects of small and medium business. Many borrowers, who first came for credit, became constant clients of the bank afterwards and used credits on EBRD's program several times, and in many cases opened credit line. Three credits are given within the framework of the program: - microcredits for private entrepreneurs and juridical persons in the amount of up to $30,000 for the term of up to 48 months on 23%-25% APR in US dollars, 25%-29% in tenge; - small credits for small and medium business in the amount of from $30,000 to $200,000 for the term of up to 48 months on 18%-19% APR in US dollars, 25%-29% in tenge; - express credits in the amount of up to $5,000 in Almaty and up to 2 th. US dollars in other cities without wadset. [2003-04-09]