Bank Eskhata, a commercial bank located in Tajikistan, will receive a USD 8 million syndicated loan funded by three European financial institutions: the Netherlands Development Finance Company (FMO in Dutch), a public-private partnership, will provide USD 5 million; the European Bank for Reconstruction and Development (EBRD), a UK-based development finance institution, will provide USD 2 million; and Bank im Bistum Essen eG (BiB), a German cooperative bank, will provide USD 1 million. Bank Eskhata will use the funding to expand its loan portfolio for micro-, small and medium-sized enterprises (MSMEs), by supporting “maturing” customers as well as new clients.
As of December 31, 2010, Bank Eskhata reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 78.3 million, a gross loan portfolio of USD 47.4 million, return on assets (ROA) of 2.62 percent, return on equity (ROE) of 22.5 percent and approximately 9,500 active borrowers.
By Rohan Trivedi, Research Associate
About Bank Eskhata:
Established in 1993 in Tajikistan, Bank Eskhata is a commercial bank that provides loans, savings and fund transfer services. As of December 31, 2010, Bank Eskhata reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 78.3 million, a gross loan portfolio of USD 47.4 million, return on assets (ROA) of 2.62 percent, return on equity (ROE) of 22.5 percent and approximately 9,500 active borrowers.
About the European Bank for Reconstruction and Development (EBRD):
The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. 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 Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2010, EBRD invested in 386 projects with a total value of EUR 22 billion.
About the Netherlands Development Finance Company (FMO):
The Netherlands Development Finance Company (FMO in Dutch) is a Netherlands-based public-private partnership that aims to promote the economies of developing countries. Founded in 1970, FMO encourages development by promoting entrepreneurship. As of December 31, 2010, FMO reports total assets of EUR 4.3 billion (USD 5.5 billion), with investments in Africa, Asia, Eastern Europe and Latin America
About Bank im Bistum Essen eG (BiB):
Founded in 1966, Bank im Bistum Essen eG (BiB) is an “ethically oriented” German cooperative bank. Since 2007, BiB has supported poverty alleviation through global financial inclusion by funding microfinance institutions directly as well as through its Lux-Flag labelled microfinance investment vehicles KCD-Mikrofinanzfonds I “Global” and KCD Mikrofinanzfonds II “Lateinamerika.” Total outstanding microfinance investments managed directly by BiB reportedly total approximately USD 100 million. BiB is also co-initiator of the responsAbility Mikrofinanz-Fonds and investment advisor to the Dual Return – Vision Microfinance funds.
Sources and Additional Resources:
[1] EBRD Press Release: “EBRD Supports Micro, Small and Medium Enterprises in Tajikistan”, http://www.ebrd.com/english/pages/news/press/2011/110922.shtml
MicroCapital.org story, September 13, 2011: “MICROCAPITAL BRIEF: responsAbility Invests $2.5m in Microfinance Institutions Asian Credit Fund of Kazakhstan, Bank Eskhata of Tajikistan, XacLeasing of Mongolia”, https://www.microcapital.org/microcapital-brief-responsability-invests-2-5m-in-microfinance-institution-asian-credit-fund-of-kazakhstan-bank-eskhata-of-tajikistan-xacleasing-of-mongolia/
MicroCapital.org story, July 17, 2011: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $6m in Local Currency to Microfinance Institution AccessBank of Tajikistan”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-6m-in-local-currency-to-microfinance-institution-accessbank-tajikistan/
MicroCapital Universe Profile: Bank Eskhata, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Eskhata
MicroCapital 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
MicroCapital Universe Profile: Netherlands Development Finance Company (FMO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Netherlands+Development+Finance+Company+%28FMO%29
MicroCapital Universe Profile: Bank im Bistum Essen eg (BiB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Im+Bistum+Essen+eG+%28BIB%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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