AKIPRESS.COM - IFC, a member of the World Bank Group, is arranging a loan worth $50 million, or roughly 19 billion Kazakh tenge, for KMF, Kazakhstan's biggest microfinance organization, part of a push to create jobs and support the diversification of the country’s economy, the IFC reported.

The financing will help KMF ramp up its lending to micro and small businesses, including those run by women and those located in rural areas. That is considered important in a country with limited access to loans because of a shortage of capital.

“Right now many micro and small businesses in Kazakhstan, especially in rural areas, need easier access to credit,” said Shalkar Zhusupov, Ñhairman of the Management Board of KMF. “Our partnership with IFC will help change that, delivering finance where it's needed most and, over the long run, helping to create jobs and combat poverty.”

The loan is part of an effort by IFC to help diversify Kazakhstan's economy by encouraging the growth of small business outside of the oil, gas, and minerals sectors. Extractive industries now account for 30 percent of Kazakhstan's GDP, half of government revenues, and three-quarters of foreign direct investment.

“Economies that rely heavily on natural resources are vulnerable to swings in commodity prices,” said Cassandra Colbert, IFC Regional Manager for Central Asia. “That's why it's important for nations like Kazakhstan to broaden their economic base, and one tried and tested way we can do that is by supporting small, local businesses.”

The loan to KMF, which will be disbursed in local currency, includes $10 million from IFC and $40 million mobilized from other lenders. The financing marks the continuation of a long-term relationship between IFC and KMF.

The partnership is part of IFC’s strategy to fight poverty and support economic growth in Kazakhstan by encouraging the development of the country's private sector.