The Refinancing Fund has been established in Tajikistan under the support of the Government of Tajikistan and international donors.
The Fund will provide long-term sustainable access to the internal refinancing means in the national currency for financial institutions and banks in Tajikistan, according to the Ministry of Economic Development and Trade (MoEDT).
Besides, the Fund is an effective and transparent mechanism for attracting means from donors and creditors who plan to invest in the country’s financial sector.
The establishment and activity of the Refinancing Fund is reportedly supported by KfW Development Bank (Germany) in the framework of Germany’s regional financial cooperation with Tajikistan, which is supported by the Federal Ministry for Economic Cooperation and Development (BMZ).
A joint meeting of donors and founders of the Refinancing Fund took place in Dushanbe on October 6.
The meeting appointed the Guardianship Board that will manage the Fund. The Guardianship Board members include representatives of the Government of Tajikistan, Tajikistan’s banking community and the Donor Coordination Council of Tajikistan.
The Refinancing Fund is a sustainable institution that supports development of Tajikistan’s economy, small and medium-sized enterprises (SMEs), rural districts and population of Tajikistan, according to a MoEDT.
Refinancing may refer to the replacement of an existing debt obligation with another debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation.
