The European Bank for Reconstruction and Development (EBRD) is helping businesses and households in Tajikistan to gain better access to green technologies and climate adaptation measures, as well as stimulating youth entrepreneurship, by providing two loans of up to 10 million US dollars (€9.28 million) to one of the country’s largest lenders, Bank Arvand, says press release issued by EBRD Dushanbe Resident Office.
The loans are part of a US$ 15 million financing package, the largest offered to a financial intermediary in Tajikistan to date. It consists of three similar-sized loans of up to US$ 5 million (€4.6 million) each.
The first loan comes under the Tajikistan Green Economy Financing Facility II (GEFF Tajikistan II) and will encourage residential and commercial borrowers to invest in green and innovative solutions that promote the efficient use of water and the sustainable management of land. GEFF Tajikistan II was launched by the EBRD and the Green Climate Fund (GCF) and is supported by donor funding from South Korea, Austria and the GCF.
The second loan comes under the EBRD’s Youth in Business program in Central Asia targeting micro, small and medium-sized enterprises (MSMEs) led or owned by young individuals under the age of 35. Eligible borrowers will also benefit from grants and concessional co-financing designed to stimulate inclusive lending and youth entrepreneurship.
The third recently signed loan came under the EBRD’s Women in Business (WiB) program for Central Asia, which is supported by the Women Entrepreneurs Finance Initiative.
To date, the EBRD has invested €947 million through 168 projects in Tajikistan.
The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 73 countries, as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated.
