DUSHANBE, January 23, 2015, Asia-Plus — The World Bank Group, with support of the Government of Switzerland, is helping Tajikistan improve access to finance for small and medium enterprises (SMEs) to spur growth.
As part of these efforts, Finance and Markets Global Practice, World Bank Group, and National Bank of Tajikistan held a conference in Dushanbe on January 22 to discuss developing the progress already made by Tajikistan in easing access to credit, according to the IFC Dushanbe Office.
The country was the top improver globally in the World Bank”s 2015 Doing Business report and was recognized for improved access to credit thanks to a sustainable functioning credit reporting system.
However, further reforms are needed, including strengthening the credit reporting, modernizing the secured transactions system and developing moveable assets lending practices.
Abdujabbor Shirinov, Chairman of the National Bank of Tajikistan, said: “To continue the reform process, we need to prepare draft amendments to the existing legislation to speed up the development of effective credit information sharing and the pledge of movable property. We also need to develop effective mechanisms for financing, and improve the access of small and medium businesses to various sources of funding.”
“Financial sector reform is a key to sustained economic growth and offers opportunities beyond the sector to drive broader economic growth in Tajikistan. We will continue providing our knowledge and first-hand experience to help improve access to financial services in the country,” said Fabrizio Fraboni, Senior Expert of Global Credit Reporting Team at WBG.
The initiative is part of the World Bank Group Finance & Markets Global Practice”s Central Asia Financial Markets Infrastructure Project, which aims to strengthen the financial infrastructure in Tajikistan and other countries of the region. The project is supported by funds from the Government of Switzerland.
The World Bank Group is one of the world”s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Center for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world.
The Finance & Markets Global Practice aims to help countries build deep, diversified, inclusive, efficient and stable financial systems which are essential to promoting economic growth and reducing poverty and increasing shared prosperity. The practice is committed to delivering public and private sector tailored solutions to development challenges by leveraging the whole range of the Bank Group”s financial, knowledge/advisory and convening services for clients. In doing so, the practice not only partners with the broader World Bank finance team (IFC, WB, MIGA and WB/IFC Treasuries) but also acts as an enabler for all of the other GPs and Cross-Cutting Groups.
As a joint World Bank-IFC practice, the Finance & Markets Practice brings together the World Bank”s knowledge, finance (loans, credits, guarantees, risk management products), and convening services, and IFC advisory at the industry and public sector level into a single suite of development solutions for our clients and the global community to support reaching the twin goals of eliminating extreme poverty and promoting shared prosperity.
Today, this suite of financial solutions is in excess of US$10 billion in current and pipeline engagement commitments. The Global Practice has an ongoing portfolio of about 400 knowledge activities (with costs up to $73 million) and 98 IFC advisory services (valued at $136 million).
Within its Cooperation Strategy for 2012-2015 Switzerland focuses on the four sectors in Tajikistan, such as Health, Rule of Law, Drinking Water Supply and Sanitation, and Private Sector Development. The overall goal of the Swiss Cooperation in Tajikistan is to support the transition process in the country through contributing to the economic development and by helping build institutions and systems which are responsive to the population”s needs.
