Eng - UNDP in Tajikistan

DIF - Coca-Cola Tajikistan
Regional TFP : OrienBank Tajikistan
Southern Tajikistan Water Rehabilitation Project
Khujand Water II
DLF - Telecom Technology
Tajik Financial Sector Framework
DEVELOPMENT PARTNER PROFILE
Future Programming Direction
Three main areas of activity will be emphasized:
1. Private sector development, focusing on small and medium-sized enterprises (SMEs) and micro-businesses. At present, opportunities for
financing alongside strategic foreign investors are limited due to the unfavourable investment climate. The size of Bank projects in the private
sector is likely to be smaller than average and generate lower profits for the Bank. However, demonstration effects of successful private sector
investments are very high and would allow the Bank to achieve significant transition impact with low levels of commitment. The Bank will
seek to actively market business opportunities to private sponsors particularly in agribusiness and other resource-based industries. The Bank
will also make use of such instruments as Direct Investment Facilities and Trade Facilitation Programmes.
2. Support to the financial sector, to alleviate a key constraint for private sector growth in particular of SMEs. The existing SME credit line
operations of the Bank have achieved a significant track record, but implementation continues to suffer from the weakness of financial
intermediaries. The Bank will thus seek possibilities for taking additional equity through re-capitalization of the existing banks. This would
allow more SME credits to be channeled through the financial system and additionally create the conditions for a higher level of domestic
savings to finance investments. The Bank will also aim to provide additional lines of credit available for on-lending to SMEs and related
technical assistance programmes. The Bank will endeavor to widen the geographical scope to be covered by such new financing, beyond the
traditional business centers.
3. Selective support for critical investments in infrastructure, the poor state of which is a major bottleneck for the country’s development.
Tajikistan’s limited sovereign borrowing capacity and the relatively high cost of EBRD funds compared to concessional lending from other
IFIs and donors mean that the Bank will focus its interventions in public infrastructure in areas, where it can achieve highest transition impact
through commercialization, regulatory reform and laying the ground for future private investment. The Bank will ensure that its sovereign
operations are fully consistent with the government's macroeconomic framework and supported by the IMF, while at the same time applying
sound banking principles to each project to ensure that debt service can be carried out of direct project related revenues.
Source: Aid Coordination and Project Monitoring System Database
© State Committee on Investments and State Property Management of the RT
56