The European Bank for Reconstruction and Development (EBRD) expanded its support for rural areas of Tajikistan with a new USD 4 million loan to FINCA LLC. The multi-currency loan will be used by FINCA to increase financing for micro and small businesses mainly outside the capital, in regions underserved by banks. This is the second loan made by EBRD under the Early Transition Countries (ETC) Non-Bank MFIs Framework, a framework to strengthen MFIs in countries that are in the early stages of transition to open market-oriented economies. The credit facility will also be accompanied by a technical cooperation framework funded by multi-donor funds.
“The funding will help FINCA Tajikistan to further expand its lending operations, contributing to the development of micro and small enterprises in the country. 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," said Richard Jones, Head of the EBRD Resident Office in Dushanbe. “We believe that our rural customers in particular, as well as their families, will benefit greatly from FINCA’s increased ability to meet their somoni loan demand. We are very thankful for the ongoing trust and cooperation with the EBRD,” said Jana Chmelnizki, General Director of FINCA Tajikistan.