DUSHANBE, August 13, 2008, Asia-Plus — The International Finance Corporation (IFC) is expanding cooperation with banks in Tajikistan, Ms. Wendy Verner, manager of the IFC project for development of the business environment in Tajikistan, remarked at a press conference in Dushanbe on August 12.
According to her, IFC has signed loan agreements with two Tajik banks – open-joint-tock company Tojiksodirotbonk (TSB) and The First MicroFinanceBank of Tajikistan (FMFB).
Ms. Verner noted that that IFC will provide a $10 million loan to TSB for enhancement of the agrarian sector ($6 million) and leasing transactions ($4 million). Besides, IFC guarantees to provide $5 million from bank trade-financial loans to small and medium entrepreneurs.
IFC also helps FMFB extend its sphere of activity in Tajikistan. IFC and FMFB recently signed an agreement on providing credit lines. A total amount of a long-term loan for increase of lending to micro and small enterprises of Tajikistan is $3 million.
Small business in Tajikistan is faced with many problems on getting access to the long-term financing and this investment will promote further development of the microfinance sector, which is an important factor to alleviate poverty and create new jobs, Ms. Verner said.
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries.
TSB was established in December 1990 as the Tajik branch of the Vnesh Econom Bank of the former Soviet Union, and it initially specialized in trade and import-export banking. Later this branch was reorganized into a Joint-Stock Commercial Bank “Tajikvnesheconombank”. In June 1999 the bank was renamed and registered as Tojiksodirotbonk or TSB. Headquartered in Dushanbe, TSB has 11 branches in the main cities of Tajikistan and covering all regions of the country. Its clients include the biggest Tajik trading companies, other enterprises, entrepreneurs, and some of the embassies and diplomatic organizations based in Dushanbe.
Established in 2003, The First MicroFinanceBank was the first commercial bank in Tajikistan with a principal focus on the provision of microcredit lending. The Bank has a national mandate to provide a comprehensive range of financial services to the poor throughout the country. In addition to its head office in Dushanbe, the bank currently has four regional branches in Khorog, Gharm, Khujand and Kulob and 32 district offices in rural areas. As of May 31 2008, FMFB has disbursed USD 20 million to over 6,640 borrowers, employs 308 staff, has outstanding loans of USD 28 million to over 20,000 borrowers, and outstanding deposits of USD 11 million to over 6,157 micro savers. The Board includes representatives of its Shareholders – The Aga Khan Agency for Microfinance, the Aga Khan Foundation Tajikistan, the International Finance Cooperation (IFC) and the Kreditanstalt fuer Wiederaufbau (KfW).
