DUSHANBE, September 28, Asia-Plus – Open joint-stock-company AgroInvestBonk plans to join the Asian Development Bank (ADB) Trade Finance Facilitation Program (TFFP).
A source in the AgroInvestBonk headquarters in Dushanbe said the ADB experts arrived in Dushanbe in mid-September to assess the bank’s rating and determine an extent of AgroInvestBonk preparedness for joining the program.
“At the end of the last week, the AgroInvestBonk head Niyozmurod Saidmurodov met I Dushanbe with the ADB expert Manuel Orozco,” said the source, “The two discussed issues related to organization of transfer of money through the bank system, possibilities of regional branches of AgroInvestBonk carry out money transfer operations.”
The ADB experts also studied dynamic of growth in money remittances through the bank over the past three years and its opportunities to provide various services to labor migrants.
If AgroInvestBonk sing an agreement with ADB under TFFP, it will be the second bank in Tajikistan to sign such agreement following TojikSodirotBonk (Tajik bank for foreign economic activity). TojikSodirotBonk signed the agreement with ADB under TFFP in November 2005.
The Trade Finance Facilitation Program of ADB, launched in May 2004, is designed to promote trade in developing member countries (DMC). Under this program, ADB takes unsecured commercial risk of the issuing banks and the political risk of the respective countries of the issuing banks through partial credit guarantee and revolving credit facilities.
TFFP is composed of the following facilities: guarantee facility and revolving credit facility. This program provides short-term guarantees to international and regional banks (confirming banks) to cover both the political and commercial risks of a trade credit transaction emanating from local banks in ADB”s DMCs. TFFP is also designed to encourage trade between countries in the region. It will cover up to 80% of the risk of a trade finance instrument such as letters of credit, standby letters of credit, and bankers” acceptances. Under the revolving credit facility ADB will provide short-term loans to local banks for on-lending to private sector exporters and/or importers. The loans under this facility will be used to support various trade activities such as pre-export financing.
Founded in 1992, AgroInvestBonk with headquarters in Dushanbe has its four main branches in Khorog, Khujand, Kulob and Qurghon Teppa and 57 other branches across the republic. The AgroInvestBonk’s declared capital includes 210,000 shares for a total amount of 21 million somonis. The face value of one share is 100 somonis. Any juridical and physical entities, including the foreign ones, may be shareholders of the bank within the limits of requirements provided for by Tajikistan’s legislation.
