DUSHANBE (EBRD press service) – The European Bank for Reconstruction and Development (EBRD) is supporting microfinance and local currency lending in Tajikistan by providing a 29 mln somoni 4-year loan to IMON International – one of the largest microfinance institutions in Tajikistan. The loan is the equivalent of US $6 mln.

The loan will allow IMON International to expand its activities in the market currently under-served by financial institutions, where demand for financing outstrips supply. The proceeds of the loan will be used to provide longer-term financing for micro and small businesses. Thanks to the loan being made in the Tajik currency, IMON International and its clients will be able to avoid foreign exchange risks.

LLC Microlending Organization IMON International is a microfinance organization providing financial services to the most vulnerable groups of the population in Tajikistan. They hope to promote sustainable economic development and improved quality of life of Tajikistan by insuring reliable access to financial services for the economically active members of population. IMON International is one of the oldest EBRD clients in the country and the first microfinance institution in Central Asia to receive financing from the EBRD.

“The EBRD is very pleased with the fruitful long-term cooperation with IMON International. Working through successful microfinance organisations allows the EBRD to reach out to the small entrepreneurs that form that backbone of the Tajik economy,” said Ulf Hindström, Head of EBRD Office in Dushanbe.

The CEO of Imon International, Sanavbar Sharipova, said: “Another loan from the EBRD will enable the organisation to provide funding for longer periods and to increase lending to small businesses. The continuing cooperation between IMON International and the European Bank for Reconstruction and Development confirms that IMON is viewed by its overseas partners as a stable financial institution with a good reputation and a balanced policy”.

Since the beginning of its operations in Tajikistan, the EBRD has committed over $380 mln in over 73 projects.