Access Bank Tajikistan gets country’s first ADB private-sector loan

Access Bank Tajikistan: The Asian Development Bank (ADB) has acquired a 10% stake in Access Bank Tajikistan (ABT). In its first private-sector investment in Tajikistan, the development bank will provide an $11m package of equity and loans to help support ABT’s business growth and to boost the financing of both micro businesses and SMEs outside the capital of Dushanbe.
“We are pleased to acquire 10% of share capital in AccessBank Tajikistan and look forward to supporting the bank’s expansion to support Tajikistan’s MSMEs, especially in rural areas where many enterprises are still unbanked,” said Rainer Hartel, Principal Investment Specialist at ADB’s Private Sector Operations Department. “We are looking for other opportunities to support financial inclusion in Tajikistan.”
Entrepreneurs and smaller businesses in Tajikistanincreasingly rely on second-tier banks and microfinance companies, whose lending ability is constrained by small market share, limited deposit mobilization, constrained and costly overseas borrowing due to Tajikistan’s perceived high country risk, a dearth of qualified staff, and governance issues.
Just 16% of households have access to formal financial services and small businesses lack financing especially in rural Tajikistan, where agriculture provides jobs for two-thirds of the labor force. Private investment is therefore critical to stimulate farm and related services investments and employment.
ABT was set up in 2010 as a greenfield bank to serve low-income and MSME customers. ABT’s current shareholders include Access Microfinance Holding Aktiengesellschaft, European Bank for Reconstruction and Development, International Finance Corporation, and KfW, the German development bank. AKIPress