DUSHANBE, August 5, 2015, Asia-Plus — The World Bank Group expands a comprehensive national financial education program to increase financial literacy level by involvement of new financial organizations – partners – Bank Eskhata, MDO Arvand, and MDO Humo, press release issued by the International Financial Corporation (IFC) Office in Dushanbe says.
The initiative, which is being delivered across a variety of delivery channels including trainings for adult population, in-depth consultations for borrowers, as well as broadcasting of educational video clips and radio program. This box of educational tools will help Tajik individuals and households learn how to better manage their money, develop sound financial skills, and foster stronger banking relationships.
Recent research on financial literacy in Tajikistan carried out by IFC, a member of the World Bank Group, revealed that more than 40 percent of respondents spend all their total income, while only half make regular savings. In addition, more than 80 percent do not know basic banking terms, about 90 percent had never heard about the credit bureau.
“We are very pleased by the fact that the initiative on financial literacy and principles of consumer protection and financial services, has proven to be timely and necessary, and supported by the government, commercial banks, and especially the microfinance sector, which works with the most vulnerable sections of the population. I would like to especially thank, first of all the seven financial institutions – partners of financial literacy program. Given the current situation, which is now facing the economy and the financial sector, their investment in this program proves once again the commitment of the social mission of microfinance, which is not limited by measure, as how low interest rates does,” said Malika Ibrohimova, National Program Officer for Economic Affairs, The Swiss office in Tajikistan.
“Empowering potential and existing borrowers is a prerequisite for an efficient and transparent financial market. It will help to further expand access to finance, which will positively affect dynamics of economy growth of the country,” said Zarina Odinayeva, Azerbaijan and Central Asia Financial Markets Infrastructure Project Manager in the framework of World Bank Group Finance and Markets Global Practice. “This initiative should help increase formal savings and promote responsible financial behavior in Tajikistan.”
The program includes educational materials on household budgets and personal finance management, smart borrowing rules, preventing over-indebtedness, savings strategies, managing remittances, and the benefits of credit information reporting.
Initially, financial literacy program was successfully launched this February, which included the following financial organizations-partners – Acessbank Tajikistan, First Microfinance Bank, Imon International and MDO FINCA.
The initiative to implement financial literacy program is part of the World Bank Group Finance and Markets Global Practice’s Azerbaijan and Central Asia Financial Markets Infrastructure Project. The project is funded by the Government of Switzerland.
The World Bank Group is one of the world”s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world.
Within its Cooperation Strategy for 2012-2015, Switzerland focuses on four sectors in Tajikistan: Health, Rule of Law, Water Supply and Sanitation, and Private Sector Development. The overall goal of the strategy is to support Tajikistan’s transition process by contributing to economic development and helping to build institutions and systems that are responsive to the population’s needs.
