DUSHANBE, April 4, 2010, Asia-Plus — The European Bank for Reconstruction and Development (EBRD) is supporting the development of private sector in Tajikistan with a $2 million financing package to Amonatbonk (Tajikistan’s savings bank) for on-lending to small and medium farmers and to stimulate further growth of foreign trade in Tajikistan, press release issued by the EBRD on April 30 said.
State-owned Amonatbonk is one of the key providers of agricultural finance in Tajikistan, with the largest country-wide network of outlets in the country, focusing primarily on small business lending in rural areas.
The EBRD financing includes a $1 million revolving credit line under the Tajik Agricultural Finance Framework (TAFF)*, which will enable Amonatbonk to expand its agricultural loan portfolio, providing much needed seasonal financing to small farmers engaged in crop production.
The Bank is also extending to Amonatbonk a $1 million trade finance facility, helping it to launch trade finance services. The funds will be used to support Tajik exporters through various trade guarantee facility instruments.
The project is supported by grant financing provided by the EU to train Amonatbonk’s loan officers and agronomists the innovative TAFF lending methodology. Additional technical assistance is provided by the EBRD to help Amonatbonk strengthen its corporate governance and risk management practices.
“The EBRD is pleased to extend this financing package to Amonatbonk, which will facilitate the access of small farmers and rural entrepreneurs to financing, thus supporting the development of the private sector in Tajikistan. Amonatbonk will be our fourth partner bank under Tajik Agricultural Finance Framework and we are looking forward to successful cooperation with this important player in the market of agricultural finance”, said Henry Russell, EBRD Director for Small Business Finance and Energy Efficiency.
“Currently Amonatbonk works under agricultural development programs with the leading international financial institutions, such as the China Development Bank Corporation and Islamic Development Bank, and in turn contributes to the development of the private sector and well-being of the population of Tajikistan. We hope that this given agreement will be our first step to a close cooperation with EBRD and our relations will only become stronger and develop further”, said Ms. Gulnora Hasanova, the Chairwoman of the Board of the State Savings Bank Amonatbonk.
To date the EBRD has committed close to $200 million to the Tajik economy in various projects in the corporate, financial, energy and infrastructure sectors.
TAFF is a $35 million framework to support the restructuring of Tajikistan’s agricultural sector. The EU is supporting the implementation of TAFF with technical assistance financing worth a total of €5.2 million.
Amonatbonk is the only state-owned bank. It is one of the oldest in Tajikistan (established in 1925) and one of the largest based upon various criteria – including the number of branches and the number of served clients. The institution is unique in its orientation towards implementing social, pension and other state programs. Amonatbonk has 5 regional centers, 69 branches and nearly 500 agencies. This gives the institution a presence in the most remote mountainous parts of the country.
