DUSHANBE, Tajikistan, March 27. The European Bank for Reconstruction and Development (EBRD) has approved a loan to Tajikistan’s Humo microcredit deposit organization to support local private MSMEs in financially underserved regions of the country, Trend reports.
According to the bank, the loan of $1 million is provided within the framework of the Financial Intermediaries Framework (FIF).
This loan will assist Humo in diversifying its funding sources, extending the duration of its liabilities, and boosting its lending to MSMEs in Tajikistan. Humo is expected to enhance financial access for MSMEs situated in underdeveloped regions of Tajikistan.
Under the EBRD loan, Humo plans to dedicate a minimum of 35 percent of the funds to support MSMEs in these regions and increase the total MSME loan portfolio in these areas to at least 1.2 times the amount of the EBRD loan.
Humo offers a wide array of banking services, such as deposits, loans, payments, and money transfers, primarily targeting the lower segment of MSME clients, with a special emphasis on retail and agricultural lending. With 24 branches and 49 customer service outlets, Humo serves approximately 286,000 clients across more than 64 cities and districts throughout Tajikistan.
Meanwhile, the current loan portfolio of the EBRD in Tajikistan amounted to 482 million euros for 69 active projects as of January 31, 2024. As of the reporting date, the EBRD's cumulative investments in Tajikistan totaled 919 million euros, spread across 165 projects, with the private sector's share in the portfolio amounting to 13 percent.
