DUSHANBE, February 9, 2012, Asia-Plus – International Finance Corporation (IFC) is helping Microcredit Deposit-taking Organization (MDO) Arvand to build an agricultural leasing business, improving farmers’ access to finance and enabling them to make their operations more profitable, the IFC Dushanbe Office reports.
The IFC Tajikistan Agribusiness Finance and Business Environment Project will work with MDO Arvand to help develop its agricultural equipment portfolio in the Istaravshan and Jabborrasoulov districts of Sughd province in northern Tajikistan. IFC will develop a methodology for making leases of agricultural equipment, using IFC’s risk assessment tools, and will assist Arvand staff in making the leases. In addition, IFC will design a training module for Arvand lending officers on the agri-leasing methodology.
“Arvand intends to start leasing agricultural equipment to farmers and agribusinesses in Sughd Province,” said Shoira Sodiqova, General Director of MDO Arvand. “IFC will help develop a strong leasing methodology that will enable us to establish an agricultural equipment portfolio while maintaining strong asset quality.”
Raiomand Billimoria, IFC Project Manager, said, “Farmers in northern Tajikistan lack access to finance for agricultural equipment. IFC’s Tajikistan Agribusiness Finance and Business Environment Project will help Arvand enable farmers and agribusinesses to purchase new and efficient machinery, leading to improved productivity and profitability.”
The European Union funds IFC’s Tajikistan Agribusiness Finance and Business Environment Project. The project aims to improve the regulatory and policy environment for agriculture, as well as promote access to finance through a focus on agri-leasing. IFC provides advisory services to financial institutions in order to build capacity for agri-leasing, and assists government agencies to implement reforms that benefit the agriculture sector.
IFC has expanded its investment program in Tajikistan significantly in the last three years with commitments of $27 million in 10 projects in financial markets, manufacturing, and infrastructure. IFC’s advisory program in Tajikistan is its largest in Central Asia. Various programs focus on developing financial markets through credit information systems, microfinance, agricultural finance, and leasing. IFC’s corporate governance program promotes transparency and good governance in larger corporations.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. It helps developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, IFC helped its clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion.
