DUSHANBE, May 26, 2015, Asia-Plus – The International Finance Corporation (IFC) with support of the Government of Switzerland, is helping the Government of Tajikistan enable the use of movable assets as loan collateral, improving access to finance for entrepreneurs and small businesses in order to spur job creation and economic growth.
In Tajikistan, many entrepreneurs and smaller businesses lack traditional collateral, like land and using movable assets, such as equipment or accounts receivables, as collateral, will help them obtain financing, IFC Tajikistan said, noting that IFC is supporting the government’s effort to develop the appropriate legal and institutional framework.
“In Tajikistan, the absence of effective laws and registries to govern secured transactions restricts access to financing for small and medium businesses,” said Valeriy Kim, Deputy Chairman of the Association of Banks of Tajikistan and a member of the working group on regulatory reform on secured transactions. “Therefore, there is an urgent need to create a favorable framework for movable collateral lending to increase access to financing.”
Zarina Odinayeva, Project Manager, said: “Secure, well-functioning lending is an important part of any country’s financial infrastructure, allowing businesses to leverage their assets into capital for investment and growth. Combining deep knowledge and global experience, we will support the government’s efforts to develop a well-functioning secured lending framework for greater financial opportunities in Tajikistan.”
IFC yesterday hosted in Dushanbe a conference followed by a series of training sessions on movable asset-based lending for financial and non-bank financial institutions.
The initiative is part of the World Bank Group Finance & Markets Global Practice’s Central Asia Financial Markets Infrastructure Project, which aims to strengthen the financial infrastructure in Tajikistan. The project is funded by the Government of Switzerland.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, it uses its capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, IFC provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development.
Within its Cooperation Strategy for 2012-2015 Switzerland focuses on the four sectors in Tajikistan, such as Health, Rule of Law, Water Supply and Sanitation, and Private Sector Development. The overall goal of the Swiss Cooperation in Tajikistan is to support the transition process in the country through contributing to the economic development and by helping build institutions and systems which are responsive to the population’s needs.
