FMFB-T and EBRD cooperate in promoting private sector development
The First Microfinance Bank of Tajikistan (FMFB-T) has successfully used credit line of the Climate Change Resilience Program financed by EBRD which aimed at promoting the resilience of the private sector to the effects of climate change.
The loan to the FMFB in Tajik somoni – worth US$ 1 million equivalent – will be co-funded in equal installments by the EBRD and the Climate Investment Fund’s Pilot Programme for Climate Resilience (PPCR). The funding will be used to finance investments in climate resilience technologies in the commercial and residential sectors.
Through CLIMADAPT funding, FMFB-T supported 484 climate-sustainable projects, where 30% are women entrepreneurs and over 70% of which is commerce.
Ayten Rustamova, Head of EBRD Office in Tajikistan, said: “CLIMADAPT is one of the most successful EBRD projects in Tajikistan. On behalf of the European Bank for Reconstruction and Development, I would like to thank the management and the staff of FMFB-T for our fruitful cooperation and partnership in promoting private sector development and a sustainable green economy in Tajikistan.
The CLIMADAPT programme was launched in June 2016 and later on, the FMFB joined the programme at the beginning of the current year. The FMFB successfully has used CLIMADAPT credit line in just for 11 months, and thus once again emphasizing the Bank’s commitment to promoting the transformation to a more sustainable economy. In addition, CLIMADAPT resources became accessible in remote areas such as GBAO and Rasht valley. The achieved success was made possible due to the efforts of all those who participated in the project. Especially credit experts who are working in the field and communicating directly with customers, are showing efforts to introduce “green” technologies in every home and enterprises in Tajikistan,” said Ayten Rustamova, head of the EBRD office in Tajikistan.
CLIMADAPT follows the model of the EBRD’s Green Economy Financing Facility (GEFF) that operates through a network of more than 130 local financial institutions across 24 countries supported by almost €4 billion of EBRD finance for 120,000 clients. These projects have led to annual CO2 emission reductions of over almost 7 million tonnes.
FMFB provides a full range of banking services through its nationwide network of 7 branches and 30 banking service centres. The network covers all regions of Tajikistan, including remote parts of the country, where the presence of other financial intermediaries is limited. The FMFB has been a client of the EBRD since 2007 and has demonstrated a good commitment to the development of EBRD projects and successfully participated in various EBRD initiatives.