LONDON (EBRD press service) — The European Bank for Reconstruction and Development (EBRD) is providing a financial package of $2 mln for Arvand Bank, the seventh-largest bank in Tajikistan, to support local businesses affected by the economic impact of the coronavirus pandemic.

The EBRD financing includes a $1.5 mln loan and a trade finance line of $500,000 in support of local businesses with a focus on micro and small-sized enterprises (MSME) experiencing a decrease in their activities, turnover or profitability.

In response to the unprecedented global crisis the EBRD has adopted a Solidarity Package and now expects to dedicate the entirety of its business investments of up to €21 bln in the period 2020-21 to combat the economic impact of the coronavirus.

Small businesses are an important segment of the Tajik economy and supporting them remains a priority for the EBRD. They will benefit from export and import opportunities available through the trade finance agreement signed between the EBRD and Arvand Bank. It will help mitigate the disruptions that severe market conditions have caused in trade and supply chain.

Arvand Bank has been a partner of the EBRD since 2006, when the first loan was signed. The bank has responded to the challenges raised by the coronavirus pandemic proactively, providing funds to help its clients and support the economic recovery in Tajikistan.

The EBRD’s Trade Facilitation Programme was launched in 1999 with the aim to promote trade to, from and among the countries in which the EBRD invests. Through the programme, the EBRD provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers and distributors.

Tajikistan is a founding member of the EBRD. Since the start of its operations in the country in 1992, the Bank has invested around $900 mln through 135 projects in all sectors of the economy.