Credit line supports climate resilience in Tajikistan
A new financing facility from the EBRD seeks to help small businesses and households in Tajikistan counter the effects of climate change, such as soil erosion and water shortages.
The facility provides commercial and concessional funding through local banks and microfinance institutions, as well as offering advice to clients.
The first loan was for the somoni equivalent of US$ 3 million (€2.76 million equivalent) to Bank Eskhata, a longstanding partner of the EBRD. Half of this loan was extended by the EBRD, and the other half was provided by the PPCR, a funding window of the multilateral Climate Investment Funds. Microfinance institutions IMON International and Humo received loans for the somoni equivalent of US$ 3 million (€2.76 million equivalent) and US$ 2 million (€1.84 million equivalent), respectively, under the same facility.
The funds will be on-lent in local currency to SME clients and households to help them adopt technologies and practices to reduce soil erosion and pressure on water and energy resources, which are key environmental threats in Tajikistan. Advice to borrowers is funded by the EBRD and the United Kingdom.
The EBRD aims to boost its sustainable resource financing to around
of total annual investment