EBRD provides $20m financing package to Tajikistan

The European Bank for Reconstruction and Development (EBRD) approved a new financing programme for Tajikistan’s First Microfinance Bank (FMFB), according to its statement on Wednesday.

The programme aims to improve access to green technologies and climate adaptation measures in Tajikistan, while also supporting businesses owned or led by youth or women entrepreneurs.

A financing package of three loans totaling $10 million (€9.2 million) was signed by EBRD Managing Director Financial Institutions, Francis Malige, and FMFB CEO, Mirzosafar Safarov.

The first loan, up to $4 million (€3.7 million), is part of the Tajikistan Green Economy Financing Facility II (GEFF II).

This facility encourages borrowers to invest in green and innovative solutions that promote water efficiency and sustainable land management. GEFF II is supported by donor funding from South Korea, Austria, and the Green Climate Fund (GCF).

The second loan, up to $3 million (€2.7 million), is provided under the EBRD’s Youth in Business (YiB) programme in Central Asia. This programme targets micro, small, and medium-sized enterprises (MSMEs) led or owned by young individuals.

Eligible borrowers will also benefit from grants and concessional co-financing to stimulate inclusive lending and youth entrepreneurship.

The third loan, also up to $3 million (€2.7 million), is offered under the EBRD’s Women in Business (WiB) programme for Central Asia. This programme is supported by the Women Entrepreneurs Finance Initiative.

In addition to the three loans, FMFB has signed a mandate letter with the EBRD to receive an additional $10 million at a later stage. This will bring the total financing package to $20 million, making it the largest offering to a financial intermediary in Tajikistan to date.

Attribution: The European Bank for Reconstruction and Development report

Subediting: M. S. Salama