DUSHANBE, Tajikistan, August 14. The European Bank for Reconstruction and Development (EBRD) has approved a loan of up to $3 million for Arvand Bank in Tajikistan, with an additional $1 million provided by the Green Climate Fund (GCF), Trend reports.
This $4 million loan is the third for Arvand Bank under the Green Economy Financing Facility Regional Framework, following successful utilization of loans in 2021 and 2022.
The loan will be used for climate change mitigation and adaptation technologies, helping Arvand Bank expand its green lending products while promoting gender equality.
The project aligns with the GCF's GEFF Regional Framework's goals, supporting a green economy in Tajikistan by boosting climate technologies, especially in agriculture and rural areas.
The EBRD reported that the money from the loan might be used for solar projects. All projects in the GEFF need to follow the country's rules for the environment, health, safety, and labor.
The current loan portfolio of EBRD projects in Tajikistan equals 516 million euros, allocated for 67 active projects as of May 31.
The majority of its loan portfolio in Tajikistan, comprising 452 million euros, or 88 percent, is dedicated to sustainable infrastructure. Additionally, 33 million euros, or 6 percent, are directed towards industry, commerce, and agriculture, while 32 million euros, or 6 percent, of the portfolio are allocated to financial institutions.