DUSHANBE, Tajikistan, December 22. The Asian Development Bank (ADB) is intensifying its support for Tajikistan's small business sector through a strategic partnership with Eskhata Bank, aimed at enhancing access to green financing, Trend reports via ADB.
Under this arrangement, the Asian Development Bank (ADB) will provide a local currency loan of up to $10 million to Eskhata Bank, enabling the lender to increase credit availability for micro, small, and medium-sized enterprises (MSMEs). This financing marks ADB’s inaugural local currency loan to a commercial bank in Tajikistan, a strategic move designed to mitigate foreign exchange risks for both the bank and its borrowers.
The loan package is further bolstered by a partial credit guarantee of up to $5 million from the Asian Development Fund’s Private Sector Window. This guarantee aims to reduce lending risks and enhance the affordability of financing for small businesses, with a particular focus on supporting environmentally sustainable projects.
According to ADB, the initiative is expected to stimulate business growth, foster job creation, and drive innovation, all while contributing to the development of a more resilient financial ecosystem in Tajikistan.
In a related effort, ADB has also approved a $3 million grant to strengthen Tajikistan’s capabilities in glacier monitoring and climate-related hazard forecasting.
The funding for this initiative is provided through the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR), which is financed by the Government of Japan and administered by the Asian Development Bank (ADB).