Tajikistan Financial Institutions Initiatives

Location:

Tajikistan

Project number:

4235

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

03 Dec 1996

Status:

Completed

PSD disclosed:

24 Oct 1996

Project Description

Credit lines under sovereign guarantee and equity investments for two majority privately owned Tajik banks, Tajikbankbusiness and Orienbank, and appropriate supporting technical assistance.

Project objectives:

a) Promote the development of the small and medium-sized enterprises sector in Tajikistan and the privatisation of small state companies;
b) strengthen the financial position, corporate governance and financial intermediation capability of TBB and OB.

Transition Impact

Tajikistan is at a very early stage of transition, and is recovering from civil war. The transition impact from this project is expected to be high, given that term-funding sources are scarce, the banking sector is weak, and the fact that the Government launched a new privatisation programme in May 1996.

The Client

Tajikbankbusiness (TBB) and Orienbank (OB), two majority privately owned Tajik banks. Project implementation will be supported by a Project Implementation Unit (funded by technical assistance) and by appropriate Institutional Development Programmes for each bank.

EBRD Finance

A maximum of US$ 8.6 million (ECU 6.8 million). For each bank this will consist of:

a) a credit line of US$ 4 million (ECU 3.15 million) provided in two tranches of US$ 2 million (ECU 1.575 million);
b) a potential equity investment up to a maximum of US$ 300,000 (ECU 236,000).

Project Cost

Maximum amount: US$ 8.6 million (ECU 6.8 million).

Environmental Impact

The project has been classified C/0, having no direct impact on the environment. TBB and OB will carry out their operations in accordance with the EBRD's Environmental Procedures for Local Banks, which provides for the integration of environmental due diligence into the credit/investment appraisal process and includes a requirement that borrowers comply with national/local health and safety and environmental regulations and standards. Both banks will submit annual environmental reports to the EBRD.

Technical Cooperation

Technical assistance has been provided for project preparation and will be provided for project implementation.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.