Management Board

The contribution of the banking sector to support the development of micro, small and medium-sized businesses in rural areas of the Republic of Tajikistan

There was held the ceremony of signing the Agreement on bilateral cooperation with the opening of a credit line between the MCF "Refinancing Fund" and CJSC MDO "IMON INTERNATIONAL" on May 11, 2022. The agreement was signed by the Chairman of the Board of the MCF "Refinancing Fund" Sharif Rakhmonzoda and the Chairman of the Board of CJSC MDO "IMON INTERNATIONAL" Andrey Yaroslavovich Palka.

The Agreement will stimulate the field by creating favorable and acceptable conditions for obtaining financial support for micro, small and medium-sized businesses, which, in turn, is one of the priorities of the two organizations.

MCF "Refinancing Fund" and CJSC MDO "IMON INTERNATIONAL" through a credit line will try to expand the access of the economically active population to financial services in remote regions of the country, which will strengthen micro financing in rural areas. This agreement is an important milestone in the context of the banking and financial sector, that indicates the positive dynamics of conducted changes and meet the requirements of international financial institutions.

The Chairman of the Board of the MCF "Refinancing Fund" Sharif Rahmonzoda noted that the Fund is ready to establish mutually beneficial cooperation with other domestic financial institutions by providing them with long-term loans at affordable interest rates in the national currency, which will contribute to create conditions for sustainable development of the country's economy.

There was held the ceremony of signing bilateral Agreement between the Microfinance Fund "Refinancing Fund" and CJSC "Bank Arvand" on May 6, 2022, which cooperating for many years. The agreement was signed by the Chairman of the Fund Sharif Rahmonzoda and the Chairman of CJSC "Bank Arvand"  Shoira Muzaffarovna Sodikova.

In order to support domestic financial institutions, expand the access of population to financial services and develop small businesses, the Fund opened a credit line to CJSC "Bank Arvand"  for 3 years. The allocated funds will be used for crediting micro, small and medium-sized businesses, as well as for the development of the financial system in remote regions of the country, which will increase the access of population to relatively cheap credit resources. The agreement will allow CJSC "Bank Arvand" to stimulate the field by creating favorable and acceptable conditions for obtaining financial support, which will make a valuable contribution into the strategic development of entrepreneurship in the country.

MCF “Refinancing Fund” and CJSC “Bank Arvand” will take advantage of the favorable opportunity and strengthen their cooperation on the basis of mutually beneficial trust, which will undoubtedly have a positive impact on the development of entrepreneurship in the country.

It should be emphasized that during the signing of the Agreement, the Chairman of the Fund Sharif Rahmonzoda noted that the MCF "Refinancing Fund" is ready to establish mutually beneficial cooperation with other domestic financial institutions by providing them with long-term loans at affordable interest rates in the national currency, which will contribute to the development of the country's economy and achieve statutory goals of the Fund.

In order to support credit financial institutions, expand access to financial services for the economically active population, develop entrepreneurship and strengthen the microfinance sector in the country MCF " Refinancing Fund" signed a Cooperation Agreement with LLC MCO "Oxus" on January 31, 2022. This process facilitates the population's access to relatively cheap credit resources.

The provision of long-term loans to micro, small and medium enterprises through credit financial institutions will also contribute to the development of country’s remote regions, which lays the foundation for the development of the country's economy.

It should be noted that LLC MCO "OXUS" is a financial credit institution, which is considered as a continuation of the ACTED project on micro crediting and has a special place in the country's financial market since 2006. Due to the coverage of the regions, this credit organization has its branches in almost all cities and regions of the country, which can become a real basis for the implementation of the statutory goals of both the credit organization and the Fund.

The MCF “Refinancing Fund”, within its competence, continues to establish fruitful cooperation with credit financial institutions which regulated and controlled by the National Bank of Tajikistan, and provide them with long-term loans at affordable interest rates in the national currency to implement their plans for the future, which contributes to the development of the country's economy and the achievement of its statutory goals.

The Microcredit Fund "Refinancing Fund" within its competence continues mutually beneficial cooperation with a view to further supporting  credit financial institutions by providing long-term loans in the national currency and creating favorable conditions for the development of micro, small and medium-sized businesses, as well as the development of rural regions of the country.

As part of this, the MCF "Refinancing Fund" signed a Cooperation Agreement with LLC MDO "Zudamal", on January 14, 2022. The allocated credit resources will help expand lending in the regions of the country for the development of rural areas, as well as provide favorable opportunities for the economically active population.

Supporting the banking sector to develop and support micro, small and medium entrepreneurs in rural regions of the Republic of Tajikistan

Microcredit Fund "Refinancing Fund" provides its partners with preferential loans in order to strengthen the bank contribution to the development and support of micro, small and medium entrepreneurs in rural regions of the Republic of Tajikistan.

Expanding cooperation with domestic credit financial institutions, within the framework of promoting the country's economic development, on July 22, 2021 MCF “Refinancing Fund” signed a Cooperation Agreement with the opening of a credit line with OJSC “Commersbank of Tajikistan”.

According to the signed agreement, the MCF "Refinancing Fund" provides OJSC "Commersbank of Tajikistan" with a loan for a period of up to 36 months in order to support micro, small and medium entrepreneurs in rural regions of the country, which also allows to ensure a certain cycle of economic development, production and support of entrepreneurship in general.

Rakhmonzoda Sharif, Chairman of the Board of MCF Refinancing Fund, noted that customers through the structural divisions of OJSC “Commersbank of Tajikistan” will be able to obtain loans in national currency at lower interest rates for up to 36 months, which will contribute to the development of rural regions of the country. He also expressed confidence that cooperation with domestic credit financial institutions that have an extensive system of structural divisions throughout the country will make it possible to attract new customers in rural regions of the country and provide loans to final sub-borrowers with loans on acceptable terms.

The Microcredit Fund “Refinancing Fund” continues to cooperate with credit financial institutions by providing loans, based on this, on May 5, 2021, a cooperation agreement with the opening of a credit line was concluded with a new client CJSC “Spitamen Bank”.

According to the Bank's prospects, one of the goals of CJSC “Spitamen Bank” is to provide microcredits to various sectors of the economy in remote regions of the country in the medium term, to ensure the functioning of the credit market at low interest rates.

It should be noted that the allocated funds of the Microcredit Fund "Refinancing Fund" are aimed to fulfill the instructions of the Founder of Peace and National Unity, Leader of the Nation, President of the Republic of Tajikistan, Emomali Rahmon and the regulator of the banking system to provide the population with micro and medium loans with affordable interest rates for the development of economic sectors, stimulating entrepreneurial activity, which will help restore competition between credit institutions.

Chairman of the Board of the Microcredit Fund "Refinancing Fund" Rahmonzoda Sharif welcomed the signing of this agreement and emphasized that the loan is provided at a rate of 8% per annum, and from CJSC “Spitamen Bank” will be provided to the final borrower in accordance with a reasonable banking practice.

At the end of the meeting, the Parties discussed the targeted use of the loan and the achievement of the set goals, as well as the continuation of mutually beneficial cooperation.

On May 4, 2021, the Microcredit Fund “Refinancing Fund” signed a loan agreement with the CJSC “International Bank of Tajikistan” in order to support the expansion access of the economically active population to financial resources, develop entrepreneurship and provide micro and medium loans to rural areas of the country.

The allocated funds of the Microcredit Fund "Refinancing Fund" are aimed to fulfill the instructions of the Founder of Peace and National Unity, Leader of the Nation, President of the Republic of Tajikistan Emomali Rahmon and to achieve the main strategic goals of the Fund, to provide financial services in national currency (somoni) to credit institutions, promoting the development of entrepreneurship and strengthening the financial system in rural areas, as well as for reducing poverty, increasing employment, including crediting to micro, small and medium-sized entrepreneurs in various sectors of the economy.

 It should be noted that within the bilateral cooperation framework between the MCF "Refinancing Fund" and CJSC "International Bank of Tajikistan" loans are provided at a rate of 8% per annum, which creates a favorable basis for credit institutions to provide loans at low interest rates to the final borrower in accordance with a reasonable banking practice.

On April 13, 2021, at the management level of the MCF “Refinancing Fund” and LLC MDO “Finca” was held signing ceremony of Cooperation Agreement with the opening of a credit line to achieve strategic goals and create a favorable environment for providing microcredit in various sectors of the economy.

The MCF “Refinancing Fund” continues to provide medium-term loans through credit financial institutions to increase crediting of various sectors of the economy, as well as access to relatively cheap credit resources in order to ensure the timely implementation of the instructions of the Founder of Peace and National Unity, Leader of the Nation, President of the Republic of Tajikistan Emomali Rahmon.

It should be noted that in the process of bilateral cooperation between the MCF “Refinancing Fund” and LLC MDO "Finca" there  was determined the maximum amount of loans to one (final) borrower in accordance with good banking practice, which contributing to the reduction of interest rates on loans provided to micro, small and medium-sized businesses.

The Refinancing Fund will continue to cooperate with the country's credit financial institutions to provide loans at a rate of 8% per annum and will continue to contribute to the development of economy sectors.