The European Bank for Reconstruction and Development (EBRD), in close cooperation with the National Bank of Tajikistan (NBT), is examining ways of supporting efforts to strengthen the banking sector in Tajikistan which is currently under stress.
Following a financial assessment of the largest systemic banks in the country, the EBRD, in close cooperation with the International Monetary Fund (IMF) and the World Bank, will put together a comprehensive technical cooperation program to advise on the sector rehabilitation, including strengthening management of banks.
As part of possible IFI support, the EBRD is currently considering up to US$ 100 million loan to the Republic of Tajikistan to support the Tajik banking sector reform and restructuring. Such a loan, if it receives full internal approval and is also approved by the EBRD’s Board of Directors, would be conditional on an IMF program and a World Bank Development Policy Operation being in place, including a roadmap for banking sector reforms.
Ms. Natalia Khanjenkova, EBRD Managing Director for Turkey and Central Asia, said: “At the EBRD we believe that the current difficulties in the financial sector can be a springboard for strong, positive reforms and actions that will deliver lasting benefits to Tajikistan.”
The EBRD is a leading investor in Tajikistan and to date has committed more than €606 million through more than 100 projects in the country.
