EBRD Expands Risk-Sharing Mechanism in Central Asia and Mongolia to Record Levels

Tashkent, Uzbekistan (UzDaily.com) — The European Bank for Reconstruction and Development (EBRD) is actively expanding the application of its risk-sharing mechanism in Central Asia and Mongolia, enhancing local businesses’ access to bank financing and supporting economic growth across the region.

Under the Risk Sharing Framework (RSF), the EBRD assumes up to 50% of the credit risk on loans issued by partner banks, enabling these banks to extend more lending to private companies, particularly small and medium-sized enterprises (SMEs).

In 2025, the EBRD signed 31 risk-sharing deals totaling €28.5 million with 26 companies in Central Asia and Mongolia, a record for the region. Support was primarily directed to SMEs operating in manufacturing, food production, agribusiness, and services. Several projects were implemented in an expanded format, combining loan resources with investment grants and advisory support, helping companies strengthen financial resilience, modernize operations, and improve environmental, social, and corporate governance practices.

In Kazakhstan, the private railway company Temirservice Astana secured a loan of 1.9 billion tenge (€3.2 million) from Bank CenterCredit to construct an 11,000 m² Class A warehouse complex.

In Kyrgyzstan, aluminum profile manufacturer Steelex received US$4.8 million (€4 million) from Demir Kyrgyz International Bank to support vertical integration and expand aluminum scrap processing. The project includes inclusive employment policies, flexible work arrangements, and the launch of a university internship program. Additionally, together with Kyrgyz Investment and Credit Bank, the EBRD provided HTI Group—the country’s largest plastic packaging manufacturer—with a US$1.1 million (€0.9 million) loan for equipment modernization and energy consumption reduction, complemented by an investment grant for implementing energy-efficient solutions.

In Mongolia, the bank completed the country’s first RSF transaction in the telecommunications sector. A joint EBRD–Khan Bank loan of up to US$1.2 million (€1 million) was provided to IT Zone, one of the leading ICT integrators in Mongolia. The company will also receive grant support to strengthen human capital and improve talent management systems.

In Tajikistan, Fortuna Co Group obtained a US$1.2 million (€1 million) loan from the Investment and Credit Bank of Tajikistan to install a 218 kW solar power plant, acquire electric vehicles, and modernize equipment.

In Uzbekistan, ready-meal and packaged food producer Trade Novatik received a €1.1 million loan from Hamkorbank to expand production. The project includes grant support for renewable energy adoption, waste management improvements, and digital monitoring tools. Simultaneously, Silkway Color secured US$2.8 million (€2.38 million) to acquire energy-efficient printing equipment.

The EBRD has been applying risk-sharing instruments since the early 2000s, gradually expanding them through unfunded risk participation, first-loss guarantees, and co-lending mechanisms. The modern, scaled-up RSF model—particularly the unfunded participation format—was actively developed in the mid-2010s under the bank’s strategy to mobilize private capital, support SMEs, and promote green transition projects.

Today, the EBRD remains the largest institutional investor in Central Asia, financing more than 1,250 projects totaling over €21 billion, highlighting its central role in developing the region’s private sector and sustainable economy.