DUSHANBE, February 17, 2010, Asia-Plus — The European Bank for Reconstruction and Development (EBRD) is boosting the availability of financing to private businesses in Tajikistan with a $1 million loan to Arvand Micro-Deposit Organization for on-lending to micro and small enterprises (MSEs), press release issued by EBRD said.
Arvand is the successor of Microinvest Micro-Lending Fund, established in 2001, and is the third largest microfinance provider in the country, operating in the northern and central part of Tajikistan. It offers a range of MSE products to different sectors.
In the wake of the global financial crisis and deteriorating macroeconomic environment, lending activities in Tajikistan have reduced considerably, with micro and small businesses being particularly affected.
The loan extended to Arvand will help the institution diversify its funding base and maintain the provision of credits to micro and small enterprises in Tajikistan. The proceeds of the credit line will be used to finance investments and working capital of local micro and small businesses with medium-term loans worth up to $20.000.
“This transaction represents a continuation of our successful collaboration with Arvand and reinforces the EBRD’s commitment to supporting the growth of the private sector in Tajikistan particularly in the difficult conditions created by the global financial crisis” said Henry Russell, EBRD Director for Small Business Finance.
In 2006 the EBRD offered Microinvest a $700,000 loan, the smallest loan provided by the Bank, which was fully repaid in 2009. Overall the EBRD has invested to date close to $200 million in Tajik economy in various projects in the corporate, financial, energy and infrastructure sectors.
