DUSHANBE, Tajikistan, April 13. The European Bank for Reconstruction and Development (EBRD) has approved a provision of a $5 million loan for Tajikistan’s Arvand Bank, Trend reports.
According to the EBRD, the loan is provided under the GCF-Green Economy Financing Facility Regional Framework (GCF-GEFF Programme in Tajikistan II). Out of the total amount, up to $3.75 million is to be provided by the EBRD and up to $1.25 million by the GCF.
The funds from the loan will be directed towards climate change mitigation and adaptation technologies. This transaction will aid in expanding Arvand's range of products by introducing green lending options, with a focus on gender responsiveness.
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.
Arvand Bank provides a comprehensive suite of banking services, focusing mainly on the retail and MSME sectors in Tajikistan. As of the end of 2023, Arvand ranks as the ninth-largest bank by assets and the fourth-largest by loan book among banks in Tajikistan.