OREANDA-NEWS. September 27, 2011. The EBRD is supporting the development of the market economy in Tajikistan with a syndicated loan of up to USD 8 million to Bank Eskhata. The financing will help the latter to support its maturing micro and small business customers and also to reach out to new clients in the emerging small and medium-sized business sector, reported the press-centre of EBRD.

The EBRD will provide USD 2 million of its own funds, with the remainder syndicated to FMO, the Dutch development bank, which is providing USD 5 million, and to Germany’s BANK IM BISTUM ESSEN eG, providing USD 1 million.

This is the first time that BANK IN BISTUM ESSEN eG, a cooperative bank committed to socially responsible lending, has invested in Tajikistan. Mike Taylor, EBRD Director for Financial Institutions in Central Asia, Caucasus & Mongolia, said: “We are very happy to be bringing new investors to Tajikistan and we are confident that successful implementation of this project will encourage other banks to follow”.

Bank Eskhata is the fifth largest bank in Tajikistan and enjoys a dominant position in terms of branch coverage and number of clients in the North of the country, second largest and economically active region after capital. It is the leading semi-private Tajik bank dedicated to micro, small and medium enterprises (MSMEs).  Successful syndication of the loan with commercial lenders will introduce the bank to the international financial market.

Since starting operations in Tajikistan, the EBRD has committed more than EUR 40 million, i.e. up to 20 per cent of all investments made by the Bank in the country, to boost bank lending to local MSMEs.