Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

29 Jul 2003



PSD disclosed:

22 May 2003

Project Description

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.

Transition Impact

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.

The Client

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).

EBRD Finance

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.

Project Cost

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.

Environmental Impact

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.

Technical Cooperation

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.

Company Contact

Sabina Dziurman - Senior Banker,
Group for Small Business, EBRD
1 Exchange Square, London EC2A 2JN
Tel: +44 20 7338 7730; 
Fax: +44 20 7338 7163

Business opportunities

For business opportunities or procurement, contact the client company.

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