The European Bank for Reconstruction and Development (EBRD) is providing a local currency loan of up to USD 2 million equivalent to the Tajik microfinance institution Arvand for on-lending for local micro and small enterprises (MSMEs). This loan is a part of a larger financing package approved for Arvand which also includes an agricultural component.
Strengthening local enterprises is a key task for the EBRD as it aims to support the countries where it invests to re-energize growth. Access to finance remains a key impediment for the development of a strong and flourishing private sector, and a particular issue for MSMEs who often find access to finance difficult. Loans are also often not available in local currency. This new EBRD loan is helping to address these key issues.