DUSHANBE, September 21, Asia-Plus — To develop microcrediting in Tajikistan it is necessary to simplify a procedure of reporting of microfinance institutions (MFI) organizations to central bank, Juma Eshov, deputy head of the National Bank of Tajikistan (NBT) announced at the regional microfinance conference in Dushanbe on September 20.
We will recall that the fifth annual regional two-day conference, formally titled “Microfinance in Central Asia: Road Ahead” in Dushanbe opened at the Kokhi Vahdat State Complex in Dushanbe yesterday.
According to Eshov, Tajik central bank is currently working on reducing a number of statistical reports for microfinance organizations. “Statistical reports on providing loans and circulation of them, crediting economic branches and information about the interest rate will be canceled in the near future,” the Tajik central bank official said.
In the meantime, Tolib Ghairatov, executive director of the Association of Microfinance Organizations of Tajikistan (AMFOT), said in an interview with Asia-Plus that providing reports to central bank is one main problems facing microfinance organizations in the country and impeding development of microcrediting.
“Microfinance organizations now have to provide 12 types of various reports to the NBT,” said Ghairatov, “While organizations with a credit basis of $20,000-$30,000 and which do have appropriate technological equipment are not able to prepare such complex reports.” According to him, AMFOT has set up a working group to consider his subject and this group has already prepared proposals on simplifying the reporting procedure and submitted them for consideration to the NBT.
Ghairatov expressed confidence that the central bank’s board will consider the issue of simplifying the reporting procedure in the coming two weeks.
The AMFOT executive director further added that there are also other many problems that impede development of microfinance organizations in Tajikistan. “One of such problems is the profit tax,” said Ghairatov, “Microloaning institutions and commercial organizations pay the same taxes, and we are currently lobbing for lowering the rate of profit tax for microloaning funds, which carry out social mission, without seeking profit. Their incomes are reinvested in credit activity.”
According to him, a working group has been set up to elaborate appropriate methodological recommendations on taxation of microfinance institutions.
However, despite all these difficulties the volume of provision of microloans has been increasing in Tajikistan year in.
Juma Eshov said that last year, MFIs provided microloans for a total amount of 151.5 million somonis, while over the first eight months of this year alone, they have provided microloans for 168.5 million.
According to Tajik central bank, 8 credit societies, 6 microfinance deposit organizations, 23 microloaning organizations and 36 microloaning funds now function in Tajikistan.
The conference is organized and supported by the United States Agency for International Development’s (USAID) Central Asian Microfinance Alliance (CAMFA) and the Association of Microfinance Organizations of Tajikistan (AMFOT).
The CAMFA project is one of the many assistance projects made possible by the American people through USAID. Since 1992, the American people have provided more than $1.5 billion in programs that support Central Asia’s health care sector, democratic institutions, education, and economic growth.
