On April 29, 2024, a press conference of the State Development Bank of the Kyrgyz Republic was held on the site of the Kabar news agency announcing the launch of a new product in the field of green finance.
Deputy Chairman of the State Development Bank Saipidinov Azizbek and project manager of the bank Zhyldyz Sulaimanbekova noted that the new product in the field of green finance provides partners with the opportunity to join the growing trend of financing environmentally responsible projects. The State Development Bank strives to create financial instruments that will help preserve the environment in which we live and contribute to the sustainable development of society.
To ensure transparency and standardization in this area, the State Development Bank has developed its own taxonomy of green projects. This will help partners and clients determine which projects meet the green criteria before adopting a country taxonomy. The State Development Bank has also developed operational procedures for evaluating green projects, taking into account the specifics of the green agenda in the Kyrgyz Republic. The State Development Bank will provide banks with the necessary documents and instructions to organize these procedures and properly evaluate projects.
All documents of the State Development Bank regarding green financing were also confirmed by a team of international experts with extensive experience in implementing best practices in the field of green financing. The experts were involved in the framework of the UN Development Partnership Program. The United Nations Development Program will continue to support the State Development Bank in increasing the potential of the bank and its partners, both in terms of theoretical foundations and practical tools for the introduction of green financial products.
The interest rate conditions are attractive for borrowers, given the current levels of interest rates in the market. Moreover, the State Development Bank provides banks with the opportunity to return part of the interest rate to disciplined borrowers, encouraging them to use financial resources more responsibly.
The project evaluation process begins with their classification according to the Taxonomy of Green Projects of the State Development Bank. This allows you to determine whether the project meets the green criteria and what environmental impact is expected from it. The evaluation criteria may include aspects such as emission reduction, energy efficiency, the use of renewable energy sources and other environmentally significant factors. The project’s risks are then assessed, including both environmental and financial aspects. This is an important stage that allows you to assess the likelihood of successful implementation of the project and its impact on the environment. The finished package of documents is submitted to the State Development Bank for consideration and decision-making on the allocation of funds to finance the project.
The State Development Bank is convinced that the integration of green products into its financial practice is an important step towards strengthening the Bank’s position as a responsible participant in the financial services market.
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