The European Bank for Reconstruction and Development (EBRD) and the Republic of Tajikistan have agreed to collaborate in the areas of gender equality, support for women's entrepreneurship, and facilitation of international trade.
The Memorandum of Understanding signed on April 29th by the Chairman of the National Bank of Tajikistan, Firouz Davlatzoda, and the President of the EBRD, Odile Renaud-Basso, will assist the country in developing the Women Entrepreneurs Finance Initiative Code.
The Women Entrepreneurs Finance Initiative Code is a consolidated list of commitments from financial service providers, regulatory bodies, development banks, and other stakeholders who collectively plan to increase financial support to micro, small, and medium-sized enterprises led by women.
This globally recognized approach involving multiple stakeholders will help eliminate barriers restricting the financing of women entrepreneurs in Tajikistan and make a significant contribution to the country's economic development.
The EBRD is providing new funding and creating opportunities for the growth of businesses owned and managed by women. In particular, it will extend a loan of $5 million (4.6 million euros) to one of the country's largest lenders, Arvand Bank, as part of the EBRD's Women in Business (WiB) program for Central Asian countries. The program is supported by the Women Entrepreneurs Finance Initiative.
Arvand Bank will also receive technical assistance under WiB to promote the development of women's entrepreneurship and business activities. The bank's clients – representatives of small and medium-sized enterprises led by women – will also have access to business advisory services under the EBRD's Small Business Advice program.
A limit of $1 million (0.9 million euros) under the EBRD's Trade Facilitation Program for one of the country's leading microcredit organizations, Humo Microcredit Deposit Organization, will increase the volume of trade finance operations.
In line with the EBRD's strategic goal of promoting interregional trade and cooperation, this deal will help local companies import necessary goods, services, and equipment, as well as export their products.
To date, the EBRD has invested 947 million euros in 168 projects in Tajikistan.
