DUSHANBE, October 28, 2011, Asia-Plus — Tajik industrial bank for reconstruction and development, Tajprombank, and the Eurasian Development Bank (EDB) have signed a loan agreement for 3 million U.S. dollars.
A loan agreement between the EDB and Tajprombank was signed on October 27. The loan dedicated to finance the microloan program in Tajikistan is provided for three years.
According to a press release issued by the EDB on October 27, Tajprombank will select sub-borrowers on its own. Sub-loans ranging between US$1,000 and US$50,000 will have terms of up to 36 months.
The EDB and Tajprombank’s project will create favorable conditions for the development of micro- and small-sized business in Tajikistan, competition, production, the range and quality of products and services. Thus, small business development is expected to have a significant effect on the development of a market-oriented economy in Tajikistan.
It is to be noted that the EDB provided a US $3 million loan to Tajprombank in 2010 for one year to support its microfinance program. The loan was fully repaid in September 2011.
Founded in 1995, Tajprombank, with headquarters in Dushanbe, has 21 branches, 11 departments and 15 money-transfer offices across the country.
In 2009, the EDB appointed Tajprombank its agent bank for implementing the EDB’s first investment project in Tajikistan to finance the construction of a spinning mill by Olim-Textile.
Eurasian Development Bank (EDB) is an international financial organization founded by Russia and Kazakhstan in 2006. The members of the Bank are Russia, Kazakhstan, Armenia, Tajikistan and Belarus (2010). Other states or international organizations can become members by joining the Agreement Establishing the EDB. The Bank has authorized capital in exceeds US$1.5 billion, which was formed of contributions by its member states: Russia (US$1billion), Kazakhstan (US$500 million), Armenia (US$100,000), Tajikistan (US$500,000) and Belarus (US$15 million). The authorized capital may be increased by resolution of the Bank’s Council. The Bank has the status of an international organization, and is subject to international law.
