The International Finance Corporation (IFC), a member of the World Bank Group that supports private-sector development, has announced plans to assist Arvand, a deposit-taking microfinance organization based in Tajikistan, in developing its agricultural loan portfolio in the Sughd province. The two organizations will collaborate on constructing an agricultural leasing business, improving farmers’ access to finance and enabling farmers to improve the profitability of their operations.
IFC plans to use its risk assessment tools to create a methodology for issuing agricultural equipment leases. In addition, IFC will create a training module for Arvand loan officers based on the agri-leasing methodology.
In a statement attributed to Shoira Sodiqova, general director of Arvand, IFC’s Tajikistan Agribusiness Finance and Business Environment Project will to assist farmers in acquiring new machinery to improve productivity and profitability. Finances for the project are provided by the European Union.
As of 2010, Arvand reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 11.5 million, a gross loan portfolio of USD 8.5 million, approximately 12,200 borrowers, return on assets (ROA) of 5.49 percent and return on equity (ROE) of 21.7 percent. The 43 microfinance institutions (MFIs) in Tijikistan that report 2010 data to MIX held an aggregate gross loan portfolio of USD 418 million disbursed to 134,000 borrowers.
By Charlotte Newman, Research Associate
About Arvand
Established in Tajikistan in 2002 by ACDI/VOCA, a US-based nonprofit, Arvand was set up to provide microcredit to low-income individuals in urban areas. In addition to microcredit, Arvand now provides deposit and microleasing services. As of 2010, Arvand reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 11.5 million, a gross loan portfolio of USD 8.5 million, approximately 12,200 borrowers, return on assets (ROA) of 5.49 percent and return on equity (ROE) of 21.7 percent.
About International Finance Corporation
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.
Sources and Additional Resources:
New Europe: “IFC Supports Agri-Leasing in Tajikistan,” http://www.neurope.eu/article/ifc-supports-agri-leasing-tajikistan
MicroCapital.org story, January 26, 2012, “MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Lends $1.5m to Microfinance Institutions Tuba Rai Metin of East Timor; Humo and Partners, Arvand of Tajikistan,” https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-lends-1-5m-to-microfinance-institutions-tuba-rai-metin-of-east-timor-humo-and-partners-arvand-of-tajikistan/
MicroCapital.org story, October 10, 2011, “MICROCAPITAL BRIEF: Triodos Invests in Microfinance Institutions DemirBank of Azerbaijan; First Microfinance Bank, Arvand of Tajikistan; Arnur Credit of Kazakhstan,; Kompanion of Kyrgystan,” https://www.microcapital.org/microcapital-brief-triodos-invests-in-microfinance-institutions-demirbank-of-azerbaijan-first-microfinance-bank-arvand-of-tajikistan-arnur-credit-of-kazakhstan-kompanion-of-kyrgyzstan/
MicroCapital Universe Profile: Arvand
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arvand
MicroCapital Universe Profile: International Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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