Start of Project for Co-Financing Program of the EBRD and Bank Eskhata

Start of Project for Co-Financing Program of the EBRD and Bank Eskhata

The Bank Eskhata in collaboration with the EBRD started to finance medium-sized businesses at low interest rates for long terms. In order to assist the private sector in Tajikistan, the EBRD extends financing sectors of the economy by providing loans to local businesses under the "Medium Sized Co-financing Facility" program (MCFF). This project will facilitate the development strategy implementation of the Bank Eskhata and will provide a more prominent financing for Tajik companies in today's market conditions.

The main advantages of the new project for the Bank Eskhata are the development of current and new customers, through co-financing of small and medium-sized businesses, sharing the risks with the EBRD. For customers major benefits of this project are low interest rates, which will be provided from 16% to 22% per annum with a maturity of 3 to 7 years. The loan amount can vary from 0.5 to 5 million Euro.

The first stage of this project is consulting support, which is funded by the European Union. To date, a working visit to the Bank Eskhata is the EBRD counselor Angie Vitak. "By means of this project, the EBRD confirms its commitment to the development of the private sector in Tajikistan making such a need for local businesses financing more accessible. We pleased to provide co-financing to the Bank Eskhata and promote the expansion of the loan portfolio" - said Angie Vitak, the EBRD counselor.

The main requirements of the decision on financing include the following: high degree of interest of the owner in his business, willingness to participate in the project own funds (at least 30% of the project cost), monitoring the implementation of the company development strategy, the company should be financially sustainable, able to effectively predict the effect of management decisions in the medium and long term, show good results of its activities with the corporate financial model, business must provide management reports and to audit IFRS that are essential to the beginning of work with the EBRD.

"Bank Eskhata appreciates the participation in the program MSFF. Cooperation with the EBRD opens for us new prospects for diversification of credit portfolio, and as well contributes significantly to the development of small and medium-sized businesses, which are the basis of the Tajik economy", - said the Chairman of Management Board of the Bank Eskhata Kh.D. Nosirov.

Back to the list