The Eurasian Development Bank (EDB) will provide 2.6 million US dollars to support development of the private production business through financing the micro lending institution, Closed Joint-Stock Company (CJSC) IMON International (IMON).
EDB and IMON have signed an agreement on cooperation in financing small enterprises, agriculture, service sector and trade in Tajikistan.
The document was signed in Dushanbe on December 1 on the sidelines of presentation of EDB’s a new country cooperation strategy for Tajikistan designed for 2022-2026. The agreement was inked by Ruslan Dalenov, Vice Chairman of the EDB Management Board and Andriy Palka, Chair of IMON management Board.
These funds will be provided to borrowers through financing IMON.
To reduce borrowing cost for final recipients, the Bank reportedly subsidizes the interest rate under the program of the Technical Assistance Fund.
IMON International is the leading microfinance institution (MFI) in Tajikistan in terms of loan portfolio, client base and coverage, as well as financial and social performance. Since 2005 it has been a partner of the EBRD, which is also a minority shareholder in the microfinance institution. The EBRD became a shareholder in IMON International in November 2013, alongside the Netherlands Development Finance Company (FMO), with the aim of supporting IMON International’s goal to become a dedicated microfinance bank.
The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For more than fifteen years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries – Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The EDB's charter capital totals US$7 billion. Its portfolio mainly consists of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and Environmental, Social and Governance (ESG) principles.
