Project description
and objectives:
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The objective of the Tajik MSE Finance Facility is to develop the necessary
skills and capacity in the Tajik financial system/banking sector to provide
access to finance to creditworthy Micro and Small Enterprises (MSEs)
nationwide.
The EBRD will extend credit lines directly to selected Tajik partner banks
(PBs), which will use the funds to lend exclusively to MSEs. Credit lines will
be disbursed in tranches to the PBs depending on their sub-loan portfolio
growth. PBs will provide finance to MSEs from US$ 50 up to US$ 100,000 in
compliance with the EBRD’s standard eligibility criteria for MSE sub-loans.
The credit lines will be accompanied and supported by Technical Assistance.
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Transition impact:
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High transition impact is expected due to institution building and
strengthening of partner banks. This will also be achieved through the
provision of continuous access to reliable finance to micro and small
enterprises including those in remote, rural and economically depressed
regions. The Facility would provide as well a model to the local banking
sector to engage in MSE Finance.
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The client:
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The Facility will focus on selected local commercial banks, who meet standard
eligibility criteria. It is envisaged that the Facility will start with two
banks, while the selection process for additional banks will be continued. It
is intended that the entire Facility will eventually involve up to five
partner banks. Micro Finance Institutions and Non-Governmental Organisations
may well also be included in the Facility at a later stage.
Implementation will be carried out with the assistance of international and
local consultants (MSE credit advisors, institution building specialists, and
short-term experts).
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EBRD finance:
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Up to US$ 7 million (€6 million) credit line to partner banks.
Up to US$ 5 million (€4.3 million) onlending funds co-financed by IFC via the
EBRD/IFC MSE Central Asia Cooperation Fund.
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Total project cost:
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Estimated US$ 20 million (€17 Million) MSE Finance Facility co-financed by
contributions from the United Kingdom, European Union, Switzerland and the
United States via Technical Assistance, risk-sharing and first-loss guarantee
schemes.
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Environmental impact:
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All partner banks will adhere to the Bank’s Environmental Procedures for Micro
and Small Loans and apply them to all sub-loans financed under this Facility.
Sub-loans will be required to comply, at a minimum, with national health,
safety and environmental legislation and standards. Each PB will provide EBRD
with Annual Environmental Reports.
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Technical
cooperation:
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A technical assistance (TA) program of up to US$ 5 million (€4.3 million) is
envisaged. This includes funds from the UK Government’s Department for
International Development, US Government, and the European Union. TA funds
will be phased out over time and organized in tranches subject to the speed of
project implementation and progress achieved.
For approximately four years, up to five long-term MSE credit advisers and
additional short-term MSE credit and institution building specialists will
train and assist the PBs in setting up well qualified and monitored MSE
lending departments. Lending procedures will be adapted to MSE specifics and
special focus will be given to intensive and ongoing loan officer training.
The advisers will supervise and monitor the complete loan cycle, including
loan repayment. An additional fifth year is planned to monitor the performance
of the PBs after graduation from TA.
TA is also partially planned to assist the management of PBs in other banking
areas (treasury, internal audit, MIS etc.) through short-term assignments in
order to strengthen the impact and sustainability of the overall institution
building efforts.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Sabina Dziurman - Senior Banker,
Group for Small Business, EBRD
1
Exchange Square, London EC2A 2JN
E-mail: dziurmans@ebrd.com
Tel: +44 20 7338 7730;
Fax: +44 20 7338 7163
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EBRD contact:
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Bakhtiyor Mansurov, Operation Leader: mansurob@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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