The European Bank for Reconstruction and Development (EBRD) recently supplied a USD 2 million loan to Tajik agricultural bank Amonatbonk, founded in 1992 following Tajikistan’s independence [6]. The funds will be divided evenly between a revolving credit line administered through the Tajik Agricultural Finance Framework (TAFF) and a trade finance facility [1].
EBRD founded TAFF in 2007 with EUR 25 million (USD 33.1 million) to promote the development of Tajikistani agriculture by providing alternative finance and agricultural education to small farms [2, 3]. The funds Amonatbonk appropriated through TAFF will be used for on-lending to small and medium-sized farmers to stimulate foreign trade. The trade finance facility component will act to establish financing of these exports.
Amonatbonk bank has USD 480.9 million in assets and a credit portfolio of USD 230.8 million [7]. The bank is state-owned and has developed a reputation for enacting social programs [5].
By Matthew Castner, Research Assistant
About Amonatbonk
Amonatbonk, founded in 1925, is among the largest banks in Tajikistan. The bank has USD 480.9 million in assets and a credit portfolio of USD 230.8 million [7]. The bank is state-owned and has developed a reputation for enacting social programs [5]. Amonatbonk does not report to MIX Market, the microfinance information clearinghouse.
About European Bank for Reconstruction and Development (EBRD):
The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Central Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions (MFIs). As of the end of 2008, EBRD has operating assets worth EUR 5.2 billion, the equivalent of over USD 7 billion.
Additional Resources:
[1] European Bank for Reconstruction and Development: “EBRD financing for Tajik farmers and companies engaged in foreign trade,” April 30, 2010, http://www.ebrd.com/new/pressrel/2010/100430.htm
[2] Tajik Agricultural Finance Framework: “Welcome to TAFF,” http://www.taff.tj/
[3] European Bank for Reconstruction and Development: “Tajikistan case studies,” http://www.ebrd.com/country/country/taji/cs.htm
[4] European Bank for Reconstruction and Development: “Trade facilitation programme,” http://www.ebrd.com/pubs/factsh/themes/trade.pdf
[5] World Savings Banks Institute: “Amonatbonk – The State Savings Bank of the Republic of Tajikistan,” http://www.savings-banks-directory.com/organisation.aspx?org_id=1383
[6] Amonatbonk: “About Us,” http://www.amonatbonk.tj/history/
[7] Amonatbonk: “Amonatbonk Annual Report 2008,” http://www.amonatbonk.tj/userfiles/Amonatbonk_AnnualReport_eng.pdf
MicroCapital’s Microfinance Universe profile: Amonatbonk: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Amonatbonk
MicroCapital’s Microfinance Universe profile: European Bank for Reconstruction and Development (EBRD): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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