MSME Access to Finance – Diagnostic Study

2014-03-31 - 2014-05-31

The objective of the assignment is to draw up a comprehensive diagnostic study of the MSME access to finance in Kazakhstan and review the MSME lending practices in the EBRD partner banks and MFIs under the new Framework Facility.
Diagnostic study of the MSME access to finance covering review of the MSME sector in Kazakhstan: qualitative and quantitative analysis including estimates of size of MSE, SME activities (number of companies, contribution to GDP and employment) across regions and by sector review of the funding sources available to MSEs, SMEs: list all formal sources of MSME funding offered via and by 2nd tier banks and government institutions and present key parameters of such funding (min and max loan size, tenor, interest rates, collateral requirements, approval time, purpose, etc.). comment on the differences in access at the regional level (city / town vs. rural area): this will include the information) on the regional network coverage by banks and NBFIs and the commentary on the differences in urban vs. rural access. review of the volume of lending to MSEs, SMEs and number of MSEs, SMEs which use banking services / have loans across regions and by sector (as per tables in Annex 1 to this ToR) complemented with the commentary on the main trends. a closer look at the MSEs, SMEs with the constrained access to finance, covering urban and rural MSMEs separately. based on the findings and interviews with the various counterparts for this assignment the Consultant will make conclusions on the extent to which MSME credit supply meets the demand explaining the reasons for any substantial gaps as well as produce recommendations on the improved access. state of MSME Lending in partner banks and MFIs under KMSME FF assess the current state of MSMEs lending capacity in the up to five partner banks and one MFI under the Framework. Such assessment shall aim: 1) to assess MSME lending methodology applied and develop recommendations for improvement 2) review the scope of KSBP skills still remaining in the banking system and in each partner bank / MFI by indication of the number of trained credit officers 3) assess MSME restructuring skills available and required 4) assess the scope of measures required within the overall modus operandi of the respective FIs / MFIs and operating / regulatory environment in order to increase the efficiency of MSMEs lending units in partner banks and MFIs.