Moscow, 27 October 2011. Today, the Eurasian Development Bank (EDB) signed a loan agreement with Tajprombank to finance the microcredit programme in Tajikistan. A US $3 million loan is provided for three years and will be disbursed in instalments.
Tajprombank will select sub-borrowers on its own. These will individual entrepreneurs and companies that meet certain criteria, in particular those with the number of personnel of not more than 25. Sub-loans ranging between US $1,000 and US $50,000 will have terms of up to 36 months.
In Tajikistan’s difficult economic situation, micro-credits are given special attention. They are viewed as a priority vehicle for stimulating small-sized businesses and economic recovery in general.
The EDB and Tajprombank’s project will create favourable conditions for the development of micro- and small-sized business in Tajikistan, competition, production, the range and quality of products and services. Thus, small business development is expected to have a significant effect on the development of a market-oriented economy in Tajikistan.
In 2010, the EDB provided Tajprombank with a US $3 million loan for one year to support its microfinance programme. Within this facility, Tajprombank provided more than 1,000 sub-loans for a total of US $4.8 million (including US $1.8 million of its own funds). The loan was fully repaid in September 2011.
Additional Information
The Tajik Joint Stock Commercial Industrial Bank of Reconstruction and Development (Tajprombank) was founded in 1995. This is a universal private bank. At 31.12.2010, its assets totalled US $66 million and equity US $11.9 million. Its branch network is one of the largest in the country and includes 21 branches, 11 departments and 15 money transfer offices. Its core business is microcredit and money transfer operations. In 2009 the EDB appointed Tajprombank its agent bank for implementing the EDB’s first investment project in Tajikistan to finance the construction of a spinning mill by Olim-Textile.
