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Thursday, September 21, 2017

EBRD loans $4 million to aid Tajikistan's rural businesses

The European Bank for Reconstruction and Development (EBRD) said on Monday that it would finance FINCA, a microcredit organization, with approximately $4 million over several currencies to aid Tajikistan's rural areas.

The loan will be used to finance small businesses located outside of the capital. The bank said these other areas of the country are underserved by banks. FINCA and the EBRD have worked in tandem in Tajikistan since 2012. They have provided approximately $7 million in loans to local small businesses.

“The funding will help FINCA Tajikistan to further expand its lending operations, contributing to the development of micro and small enterprises in the country," Richard Jones, head of EBRD's Dushanbe office, said. "It will also allow local borrowers, whose revenue streams are predominately in somoni, to take medium-term loans in local currency, thus eliminating currency-exchange risks.”

FINCA representatives said this support from the bank will allow them to increase financial services to the entrepreneurial sector of Tajikistan.

Organizations in this story

European Bank for Reconstruction and Development One Exchange Square London EC2A 2JN United Kingdom

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