IFC, Eskhata Bank Partner to Support Smaller Businesses in Tajikistan

​Dushanbe, Tajikistan, August 1, 2022—IFC is joining forces with one of Tajikistan's leading banks to help smaller businesses recover from the economic shock of the COVID-19 pandemic and adapt to the post-crisis environment.

IFC will provide the equivalent of $10 million in Tajik somoni to Eskhata Bank, enabling it to provide financing to more micro, small, and medium enterprises (MSMEs). Although smaller businesses employ 35 percent of all workers in Tajikistan, they often struggle to gain access to banking services.

The CEO of Eskhata Bank, Reiner Mueller-Hanke, said: "Eskhata Bank has historically been focused on providing the best quality services to underserved MSME clients. With this local currency funding, the bank will be able to increase access to affordable funding in Tajik somoni, which is scarce in the market, to its target clients. This will help them to recover from the COVID-19 crisis and resume growing, while creating new jobs and contributing to the development of entrepreneurship in the country."

Cassandra Colbert, IFC Regional Manager for Central Asia, said: "The limited availability of funding hinders business opportunities for MSMEs. This project aligns with IFC's broader strategy in Tajikistan to help address financing gaps faced by small businesses. We believe that this investment will help Eskhata Bank's customers accelerate their business growth and support their expansion efforts in the COVID-19 recovery period."

The project will benefit from blended finance from the International Development Association Private Sector Window, which supports investments in challenging markets. The partnership with Eskhata Bank is part of IFC's Base of the Pyramid Program. Launched in 2020, it helps financial services providers deliver funding to small businesses, informal enterprises, and low-income households that have been hit by the economic slowdown caused by the COVID-19 pandemic.

IFC's relationship with Eskhata Bank dates back to 2005. Since then, IFC has extended a series of loans and trade finance lines totaling $34 million and provided a wide range of advisory services.

For more information about Eskhata Bank, please visit: http://www.eskhata.com.

About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.

About the IDA Private Sector Window
As part of the 19th replenishment of the International Development Association (IDA), the World Bank Group is continuing the IDA Private Sector Window (PSW) created under IDA18 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw

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