Katya Gorlubkova, Andrey Obrukh

MOSCOW, Reuters – Eurasian Development Bank (EDB), a bank that mainly invests in Russia, Kazakhstan and Russia, plans to borrow around $1 billion over the next fiscal year.

EDB is a major shareholder of Russia and Kazakhstan. It also has a presence in Belarus and Kyrgyzstan.

Nikolai Podguzov, chairman of EDB, stated that bank’s 2022-2026 strategy envisages spending at least $500m in projects in Armenia and Kyrgyzstan. This is in addition to the funds the Eurasian Fund for Stabilization and Development could offer.

Podguzov stated that the EFSD was created to support member countries in crisis and budget management.

The EFSD was established in 2009 and is worth $8.513 million. Russia, with $7.5billion of contributions, is followed by Kazakhstan (with $1billion) and other members with lower contributions.

To counter the effects of the COVID-19 pandemic, the EFSD provided $500 million for Belarus, $100 million to Kyrgyzstan, and $50 million to Tajikistan in 2020. Podguzov didn’t say how much money the fund would provide to its members for 2021.

Podguzov was asked if Afghanistan had sought financial assistance from the bank. He said that there have not been any such contacts, and Afghanistan is not a bank member.

Podguzov stated that EDB would soon include Uzbekistan in its ranks. The move could take place next year.

Podguzov stated that Kazakhstan and Russia have both experienced a rebound in economic activity after a significant contraction in 2020 as a result of the COVID-19.

Podguzov stated that all states (including bank members) have funnelled serious resources into their economies.

However, not everyone has fully recovered from the bank’s losses.

While the recovery growth process is still ongoing, it appears to be in decline. Podguzov indicated that Armenian and Kyrgyzstan still have not reached pre-pandemic levels of development.