EBRD Approves Loan to Tajikistan’s Microcredit Organization

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EBRD (European Bank for Reconstruction and Development) has approved a loan of $3 million to Tajikistan’s IMON microcredit deposit-taking organization, Trend reports.

According to EBRD, the total loan amount is $4 million. In addition to EBRD’s contribution, GCF (Green Climate Fund) will provide $1 million under the Green Economy Financing Facility Regional Framework.

The funds from this loan will be directed towards climate change mitigation and adaptation technologies. The transaction aims to support the expansion of IMON’s product offerings, specifically focusing on green lending products, in a gender responsive way.

This is the third loan to IMON under the Framework, following the successful utilization of the initial loan signed in 2021 and the subsequent one signed in 2022

IMON ranks as the fourth-largest financial institution in Tajikistan. As of the end of March 2023, it is responsible for approximately 9 percent of the total lending in the country.

EBRD portfolio in Tajikistan reached 487 million euros, allocated for 67 active projects as of July 31.

Tajikistan joined EBRD in 1992; since then, the bank has established itself as the primary investor in the country, fostering a longstanding cooperation. Its primary focus in Tajikistan lies in enhancing infrastructure, promoting regional connectivity, and creating employment opportunities.

Source: Trend News Agency