Azernews.Az

By Aynur Jafarova

The European Bank for Reconstruction and Development (EBRD) will allocate a new loan to Tajikistan’s microcredit deposit-taking organization IMON International CJSC.

The loan in Tajik somoni equivalent to $5 million is aimed at responding to rising demand for local-currency funding and will be used by IMON for on-lending to micro and small-sized enterprises (MSEs), EBRD said on November 18.

IMON is the largest microfinance institution in Tajikistan with more than 83,000 customers served by the organization’s extensive national network of 127 branches and service outlets. In December 2012, IMON received deposit taking license and currently offers a range of loan and deposit products for businesses, sole entrepreneurs, MSMEs and farmers; its primary focus is on underserved, economically active members of the Tajik population.

“With this four-year senior loan in somoni, the EBRD expects to make an important contribution in the microfinance sector by reducing foreign currency exposure for IMON International and its clients,” Richard Jones, Head of the EBRD Resident Office in Dushanbe, said.

Sanavbar Sharipova, CEO of IMON International noted the EBRD’s financing will help increasing the supply of affordable credit to farmers, micro and small businesses, as well as female entrepreneurs, creating income and new jobs.

“We also plan to open additional branches, expand credit for agriculture and strengthen rural financing,” she added.

The EBRD has a longstanding relationship with IMON, in which it is a shareholder. A first loan of $1 million was provided in 2005, and a further six loans were extended for a total of $15 million. In November 2013, the EBRD became a shareholder in IMON, alongside the Netherlands Development Finance Company (FMO), with the aim of supporting IMON’s goal to become a dedicated microfinance bank.

Since the beginning of its operations in the country, the EBRD has invested €360 million in Tajikistan across many sectors of the economy.