DUSHANBE, February 11, 2010, Asia-Plus — The Asian Development Bank (ADB) has completed its microfinance systems development program in Tajikistan, facilitating the development of a vibrant and growing microfinance industry in the country, press release issued by the ADB Tajikistan Resident Mission (TJRM) says.
According to a recently released project completion report, the program achieved its objectives of creating a sound legal and regulatory environment for Tajikistan”s microfinance industry; building the capacity of the National Bank of Tajikistan to regulate and supervise microfinance institutions; strengthening the institutional capacity of microfinance institutions; and transforming microcredit non-government organizations into formally licensed and regulated microfinance institutions.
“Overall, the program is a success,” said Makoto Ojiro, ADB’s Country Director for Tajikistan.
A microfinance law and implementing regulations were adopted and changes to the tax code were made. The National Bank of Tajikistan and more than thirty microfinance institutions received capacity building assistance, and more than $3 million was loaned to 14 microfinance institutions, which used the funds to provide microloans to over 5500 clients.
“The program has had positive impact on low-income households by providing institutional sources of credit for creation and expansion of business activities, which helped to increase and diversify their income,” said Mr. Ojiro.
ADB provided $8 million in loans for the program, while the Government of Tajikistan and microfinance institutions contributed $1.3 million. The National Bank of Tajikistan was the Executing Agency for the program, which was designed in 2002 and approved in 2003.
