DUSHANBE, April 29, 2011, Asia-Plus — The European Bank for Reconstruction and Development (EBRD) is extending an additional US$0.3 million credit line to Makolli, a local bread and pasta manufacturer in Tajikistan, to finance its increased working capital requirements, press release issued by the EBRD on April 28 said.
To improve accounting skills and financial management of the company, technical cooperation funds for relevant trainings will be allocated by the EBRD.
The investment supplements the EBRD’s direct financing facility extended to Makolli in 2009, bringing the total loan amount provided to the company to US$2 million.
“In the light of the global rise in raw materials’ prices, the transaction addresses the need to secure additional working capital for the company’s operations,” said Ulf Hindstrom, Head of the EBRD Office in Tajikistan.
In Tajikistan, the EBRD focuses its activities on developing the banking sector, improving municipal infrastructure, and promoting small businesses. The Bank is also supporting the development of the agricultural sector, with a special emphasis on loans to farmers under the Tajik Agriculture Financing Framework (TAFF).
To date, the EBRD has committed over €205 million in various sectors of the Tajik economy, mobilizing additional investments in excess of about €60 million.
The EBRD, owned by 61 countries and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies from Central Europe to Central Asia.
