DUSHANBE, March 15, 2016, Asia-Plus — The World Bank Group, with support of the Government of Switzerland, is launching the third phase of an advisory project to further strengthen Tajikistan’s financial infrastructure and unlock affordable financing for smaller businesses, helping them grow and create jobs.
The IFC Office in Dushanbe says that over the next three years, the Azerbaijan-Central Asia Financial Markets Infrastructure Project III will continue to help develop an efficient credit reporting system. This system will enable lenders to access borrowers’ credit histories, evaluate loan risks, and make lending decisions more quickly. It will also spur a regional integration of Tajikistan’s credit reporting service providers into one platform.
To promote movable asset-based lending, the project will remain focused on comprehensive secured transaction reform, and will continue to expand its financial literacy program, which has thus far provided training to more than 100,000 Tajiks.
From the launch of the reform on establishing the system of financial infrastructure in 2009, with the support of National Bank of Tajikistan and country’s financial institutions, one of the most efficient systems for credit information exchange in the region has reportedly been created in Tajikistan. The next step of the project is the creation of an effectively functioning secured transaction system.
The Government of Tajikistan and financial institutions with the World Bank Group support have created a sound environment for developing a credit information sharing system. As a result, the new legislation governing credit information sharing was adopted and Tajikistan’s first private credit information bureau was established in 2010. It is now fully operational, producing more than 70,000 credit reports and other evaluations every month.
Thanks to the presence of a well-functioning credit bureau, Tajikistan’s score in the Getting Credit section of the World Bank’s Doing Business Report went from 0 in 2013 to 4 in 2014 and finally to 7 in the most recent edition.
As a next stage of reforms, the comprehensive secured transaction reform was initiated under the strong support of the National Bank of Tajikistan and sector-level players. The Azerbaijan-Central Asia Financial Markets Infrastructure Project is funded by the government of Switzerland and implemented by the World Bank Group Finance and Markets Global Practice.
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 Centre 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.
