The EBRD will provide US$2 million of its own funds, with the remainder syndicated to FMO, the Dutch development bank, which is providing US$5 million, and to Germany’s BANK IM BISTUM ESSEN eG, providing US$1 million.

This is the first time that BANK IN BISTUM ESSEN eG, a cooperative bank committed to socially responsible lending, has invested in Tajikistan. Mike Taylor, EBRD Director for Financial Institutions in Central Asia, Caucasus & Mongolia, said: “We are very happy to be bringing new investors to Tajikistan and we are confident that successful implementation of this project will encourage other banks to follow”.

Bank Eskhata is the fifth largest bank in Tajikistan and enjoys a dominant position in terms of branch coverage and number of clients in the North of the country, second largest and economically active region after capital. It is the leading semi-private Tajik bank dedicated to micro, small and medium enterprises (MSMEs). Successful syndication of the loan with commercial lenders will introduce the bank to the international financial market.

Since starting operations in Tajikistan, the EBRD has committed more than €40 million, i.e. up to 20 per cent of all investments made by the Bank in the country, to boost bank lending to local MSMEs.