IFC to Help Kyrgyz Not-for-Profit Group Reach More

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					                                                                       Press release

In Bishkek:
Kymbat Ybyshova
Phone: (+996312) 626160

                 IFC Supports Mortgage in the Kyrgyz Republic

Bishkek, August 13, 2008— IFC, a member of the World Bank Group, will help
Bai–Tushum, one of the Kyrgyz leading microfinance institutions, to improve its
mortgage-lending operations. Bai–Tushum has been providing mortgage loans since
2004 and during that period it has been making a conscious effort to improve its
mortgage portfolio.

To assist Bai-Tushum in its efforts IFC’s experts will perform an analysis of Bai-
Tushum’s mortgage-lending operations and will consequently advise its Senior
Management on ways to improve the quality of its mortgage portfolio and establish an
environmental management system that will help make its operations more

The Bai-Tushum project reflects IFC’s strategy of assisting the Government of the
Kyrgyz Republic in its efforts to provide housing solutions to its low and middle
income citizens. In order to fulfill this strategy IFC initiated Central Asia Primary
Mortgage Market Development Project which currently works on several initiatives to
improve housing policy in the country and strengthening the institutional capacity of
the local financial institutions.

The housing finance advisory services agreement was signed today within the
framework of this Project by Lars Thunell IFC Executive Vice President and CEO
and Gulnara Shamshieva, Bai-Tushum’s CEO.

At the signing ceremony Gulnara Shamshieva, Bai-Tushum’s CEO, said “Our
cooperation with IFC is important for us to help people to change their living
conditions. We hope it will strengthen our institutional capacity and enable us to
expand our mortgage portfolio”.

In his response Lars Thunell IFC Executive Vice President and CEO said “We believe
our advisory support will help Bai-Tushum to increase access to affordable housing in
the Kyrgyz Republic. We are also optimistic that our support will strengthen Bai-
Tushum’s market position in mortgage making it a model for the Kyrgyz financial


About IFC:

IFC, a member of the World Bank Group, fosters sustainable economic growth in
developing countries by financing private sector investment, mobilizing private
capital in local and international financial markets, and providing advisory and risk
mitigation services to businesses and governments. IFC's vision is that people should
have the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through syndications
and structured finance for 299 investments in 69 developing countries. IFC also
provided advisory services in 97 countries. For more information, visit

About Bai-Tushum:

Bai-Tushum was established in 1997 with the support of U.S.-based ACDI/VOCA
(Agricultural Cooperative Development International/Volunteers in Overseas
Cooperative Assistance) and CARITAS, a Swiss relief agency. It provides micro
credit services to private entrepreneurs, traders, farmers, and micro and small
agricultural enterprises using individual and group lending methodologies. Bai
Tushum currently has 10 000 clients, with the majority of the portfolio outside the
capital Bishkek.

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