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Economy
18/08/2008
IFC expands partnership with Tojik Sodirot Bank to promote agricultural lending in Tajikistan
IFC will lend the bank US$10 million, with US$6 million earmarked for loans to the agriculture industry and US$4 million set aside for leasing. In addition, IFC will guarantee US$5 million of the bank’s trade finance loans to small and medium enterprises.
"Providing farmers with access to fair and market-based funding is a priority for IFC, given the agriculture sector’s importance for Tajikistan’s economy," said Lars Thunell, IFC Executive Vice President and CEO.
Potential borrowers include individual farmers, farming cooperatives, and food processing companies. The bank will use the US$5 million trade finance portion to help smaller clients import wheat, edible oils, and other food products and consumer staples. It will also guarantee short-term pre-export advances from correspondent banks for outward shipments of processed cotton.
The loan agreement was signed in Dushanbe on June 30. Thunell will meet with the bank’s management during his upcoming visit to Tajikistan on August 14.
Since April 2007, IFC has been providing advisory services to help Tojik Sodirot Bank expand its cotton lending operations in southern Tajikistan. The program has allowed it to approve nearly US$300,000 of loans to cotton farms in 2007. IFC has also provided training, workshops, and targeted consultation on the development of leasing products.
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed US$8.2 billion and mobilized an additional US$3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries.
Tojik Sodirot Bonk is the third-largest bank in terms of total assets and the second-largest bank in terms of total capital in Tajikistan. TSB has a wide client base of private enterprises in the trade, services, and industry sectors. It serves clients from its headquarters in Dushanbe.
"Providing farmers with access to fair and market-based funding is a priority for IFC, given the agriculture sector’s importance for Tajikistan’s economy," said Lars Thunell, IFC Executive Vice President and CEO.
Potential borrowers include individual farmers, farming cooperatives, and food processing companies. The bank will use the US$5 million trade finance portion to help smaller clients import wheat, edible oils, and other food products and consumer staples. It will also guarantee short-term pre-export advances from correspondent banks for outward shipments of processed cotton.
The loan agreement was signed in Dushanbe on June 30. Thunell will meet with the bank’s management during his upcoming visit to Tajikistan on August 14.
Since April 2007, IFC has been providing advisory services to help Tojik Sodirot Bank expand its cotton lending operations in southern Tajikistan. The program has allowed it to approve nearly US$300,000 of loans to cotton farms in 2007. IFC has also provided training, workshops, and targeted consultation on the development of leasing products.
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed US$8.2 billion and mobilized an additional US$3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries.
Tojik Sodirot Bonk is the third-largest bank in terms of total assets and the second-largest bank in terms of total capital in Tajikistan. TSB has a wide client base of private enterprises in the trade, services, and industry sectors. It serves clients from its headquarters in Dushanbe.
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