Sustainable Economic Development Program: TA package1: Set-up of a National Savings and Credit Cooperative Association and TA package 2: Support financial institutions in value chain financing

01.08.2009 - 31.12.2010


Overall project value (EUR)458 760 Euro, 690000 USD
No. of staff provided5
Name of Client1. National Union of Credit Unions and Cooperatives of the Kyrgyz Republic; 2. Financial value chain members across the country
Financing agencyDeutsche Gesellschaft fur Technische Zusammenarbeit (GTZ)
Name of partnersAFC International Consultants (Germany); ADG – Academy of German Cooperatives (Germany)
Detailed Narrative Description of ProjectThe savings and credit cooperative sector in Kyrgyzstan has shown a rapid growth in the last ten years. A huge number of new savings and credit cooperatives (SCC) in rural and urban areas have been established since then. Currently the sector comprises of more than 250 SCCs with altogether about 27.500 members.
The German Development Cooperation, in particular GTZ, has been supporting the financial sector development of Kyrgyz Republic for several years with a focus on capacity building for SCCs in rural and urban areas. Technical assistance was provided in the field of setting-up of SCC savings, introducing a credit technology, accounting, financial reporting to the supervisor etc.

The project referred to component 3 of the Sustainable Economic Development Program of GTZ in Kyrgyzstan. The objective of component 3 was to facilitate the access to financial services in Kyrgyzstan. Within component 3, the project aimed at supporting the set up and strengthening the operations of the National Association for Savings and Credit Cooperatives (NASCC) – TA package 1. At the same time the project delivered technical assistance to financial institutions and enterprises along selected value chains with respect to value chain finance - TA package 2.
TA package 1:
• NASCC was professionally working, following a defined strategy and business plan.
• 70% of the member SCC were satisfied with the services and technical support provided by NASCC.
• Member SCCs regularly paid defined membership fees to NASCC that progressively cover the costs of NASCC.
TA package 2:
• Commercial banks, SCCs and other financial institutions were familiar with the concept of value chain finance.
Identified financial needs of enterprises along selected value chains were addressed by financial institutions
Detailed Narrative Description of Services providedTA package 1 - Set-up of a National Savings and Credit Cooperative Association
• Develop a business plan taking into consideration the new structure of NASCC in the SCC sector
• Establish a member- and service-oriented NASCC which is supportive to the SCC sector
• Develop appropriate services for NASCC within a service fee structure
• Develop and launch a pilot product and support selected SCCs in their activities
• Elaborate a joint strategy for refinancing SCCs by taking into account the future role of NASCC
TA package 2 - Support financial institutions in value chain financing
• Support financial institutions in supplying credit products to the MSME market, particularly to enterprises along the identified value chains
• Support enterprises along the identified value chains in their effort to access financial services.