The Asian Development Bank, a regional financial organization whose investment goals include regional infrastructure, transport and energy projects, has given the green light to its first private sector loan in Tajikistan. The regional body will allocate more than $11mn USD to acquire a ten percent share in Access Bank Tajikistan, a local financial institution that finances, micro, small and medium-sized enterprises (MSMEs) in areas of Tajikistan apart from Dushanbe, where other microfinance organizations, such as FINCA, already operate. The ADB’s investment was made in order to increase ABT’s presence in mostly rural areas of Tajikistan that currently do not have access to any type of financial institution and are thus financially excluded currently.

In addition to the $11b doled out to acquire a stake in ABT, the ADB will allot an additional $54 million to assist with the development of Tajik power lines. Currently outdated and incapable of transmitting peak amounts of energy, the funds will be destined also to purchasing and implementing a metering system which will allow Tajik officials to measure energy usage and prevent energy loss. The latest series of grants/loans brings the total amount of financial assistance offered by the Asian Development Bank to $430mn USD in Tajikistan alone.

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News Briefs:

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