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Tajikistan: TAJ: Promoting Financial Inclusion through Greenfield Banking–

Nonsovereign (Private) Project | 47915-001 Status: Approved

The investment package will support economic activity of underserved farmers, and micro and small and medium sized businesses (MSMBs).

With bank assets to GDP at less than 28% Tajikistan s financial intermediation is very low and trails far behind other transition economies. Intermediation spreads are high and the stability of banks is weak. Only 3 banks and 7 MFIs exceed 1000 borrowing clients. Although MFIs have made efforts in serving households and MSMBs, the overall significance of their outreach remains limited.

Project Details

Project Officer
Cheema, Asif Private Sector Operations Department Request for information
Country
  • Tajikistan
Sector
  • Finance
 
Project Name TAJ: Promoting Financial Inclusion through Greenfield Banking–
Project Number 47915-001
Borrower/Company ACCESSBANK TAJIKISTAN
Country Tajikistan
Location
Type or Modality of Assistance
7433 Equity USD 14.42 million Approved
7433/3241 Loan USD 5.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions

Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Cheema, Asif
Project Sponsor(s)
Description

The investment package will support economic activity of underserved farmers, and micro and small and medium sized businesses (MSMBs).

With bank assets to GDP at less than 28% Tajikistan s financial intermediation is very low and trails far behind other transition economies. Intermediation spreads are high and the stability of banks is weak. Only 3 banks and 7 MFIs exceed 1000 borrowing clients. Although MFIs have made efforts in serving households and MSMBs, the overall significance of their outreach remains limited.

Access Bank, Tajikistan (AB) was established in April 2010 and currently serves about 7,000 customers in 6 branches with an average loan size of about $3,000. AB is an equal opportunity employer with a significant outreach to women customers. Access Holding JSC, Berlin (AH) owns 52%, while IFC and EBRD each own 18% and KfW 12% of AB shares. AH itself is owned by LFS Financial Systems, its strategic investor and knowledge provider and its staff through Micro Assets, Berlin (17.4%), CDC (UK), EIB, KfW(D), and Omidyar Tufts, each (14.1%) and FMO (NL) (10%). AB s reputable owners stand for improving access to finance for MSMBs while respecting highest integrity and governance.

Objectives and Scope The ABT is a sustainable bank with significant outreach to MSMEs. The investment entails equity participations and loans to ABT including a B-loan
Linkage to Country/Regional Strategy Support of the private sector is one of the pillars of the ADB Country Strategy with Tajikistan
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects ESMS arrangement. Environmental category A subloan applications are excluded from financing.
Involuntary Resettlement ESMS arrangement. IR category A and B subloan applications are excluded from financing.
Indigenous Peoples ESMS arrangement. IP category A and B subloan applications are excluded from financing.
Stakeholder Communication, Participation, and Consultation Due diligence carried out in 5-12 Sep- 2014
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 02 Dec 2014
Last PDS Update 08 Jun 2015

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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