A new state-run lending agency is expected to begin operating in Tajikistan in the near future. This state commercial bank will be founded by the Government through the Ministry of Finance.
Speaking at a roundtable in Dushanbe, Suhaili Abdulvahhobov, a chief specialist with the National Bank of Tajikistan (NBT) Department for Banking Supervision, noted on February 28 that the Ministry of Finance has prepared all necessary documents and submit license application to the NBT soon.
The main objective of establishing the new state-run commercial bank is in financing industrial production facilities, he added.
Recall, Finance Minister Faiziddin Qahhorzoda told reporters in Dushanbe on February 3 that the new state-run lending agency will be established in order to reduce the burden on Amonatbonk (Tajikistan’s savings bank).
According to him, the work on developing a charter of this lending agency is under way.
“Besides, possible sources of financing of this state-run lending agency are currently being discussed,” said the minister. “The norms have been determined. Its authorize capital must exceed 50 million somoni (equivalent to 5.1 million U.S. dollars).”
According to him, they are also determining transactions that will be carried out by this bank. “We have only one state bank – Amonatbonk. Under the current situation in the country’s banking system, we don’t want all the burden to fall on one bank. Therefore, we are creating conditions for establishment of one more state bank that would finance the real sector of the economy,” Qahhorzoda added.
The bank is expected to be established at the State Entrepreneurship Support Fund.
The State Entrepreneurship Support Fund was established in 2014 to support the successful development of entrepreneurial companies through an array of business support resources and services.
A state bank is a financial institution that a state has chartered primarily to provide commercial banking services. A state bank is not the same as a central or reserve bank; these institutions are primarily concerned with influencing a government's monetary policy.
