Tajikistan 2009 Microfinance Analysis and Benchmarking Report

Analyzing the microfinance sector in Tajikistan

This report explores trends in performance of Tajik MFIs over the past three years. It provides an analysis of the various actors in the sector, growth and funding trends, and financial performance indicators.

The microfinance sector in Tajikistan has played an important role in increasing access to finance for the country'’s population in the last five years. There are 12 commercial banks, 7 credit societies, and 88 MFIs operating in Tajikistan, providing 200,000 clients with microcredit services. The Tajik market exhibits a two-tier structure. It has a proliferation of small MFIs which operate in more remote and inaccessible areas and a concentration of several larger, highly leveraged banks and non-bank providers.

MFIs in Tajikistan registered high growth rates in recent years, but faced heightened risks and challenges due to the financial crisis and economic slow-down in the region. Trends include:

  • Slow-down in growth by the end of 2008 and in 2009;
  • Significant foreign exchange risk exposure for MFIs funded by foreign investors;
  • Deteriorating portfolio quality as remittance flows from Russia decreased;
  • Positive adjusted returns despite double digit inflation;
  • Improved efficiency for large MFIs.

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