Thousands of small and microbusinesses across Tajikistan will be able to continue their activity and take on board green technologies thanks to a financial package of up to US$6 million mobilized by the European Bank for Reconstruction and Development (EBRD) for the country’s leading microlending institution, Imon International (Imon), says press release issued by the EBRD Dushanbe Resident Office on August 18.
Part of the package will consist of a senior loan of up to US$2 million that will allow Imon, serving more than 130,000 customers through a network of 27 branches, to provide much-needed finance to local microbusinesses. Sub-loans are expected to be disbursed in Tajik somoni to protect borrowers from foreign exchange-related risks.
The remaining part of the package, up to US$4 million, will be provided under the EBRD’s Green Economy Financing Facility (GEFF) and will help increase access to green technologies for local households and small local businesses in Tajikistan. This loan is supported by concessional financing of US$ 1 million provided by the Green Climate Fund (GCF).
The GEFF, supported in Tajikistan by the GCF and South Korea, will also use funds from the European Union’s Enhanced Competitiveness of Tajik Agribusiness Program, which promotes competitiveness in the agribusiness sector.
The GEFF program is part of the Bank’s Green Economy Transition (GET) approach. Through the GET approach, the EBRD aims to increase green financing to more than 50 per cent of its annual business volume by 2025.
MDO Imon International is one of the largest leading financial institutions in Tajikistan, which has a network of 130 representative offices and has been operating in the country’s microfinance market for more than two decades.
To date, the EBRD has invested €934 million through 153 projects in Tajikistan’s economy.
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