The International Finance Corporation (IFC), the lending arm of the World Bank, recently made a USD 2 million equity investment in AccessBank Tajikistan to help the new bank expand the availability of credit for micro- and small enterprises. In addition to the funding, IFC agreed to provide advisory support to assist in the startup of the bank. An IFC press release says that AccessBank Tajikistan is planning to operate 17 branches throughout Tajikistan and disburse over 37,000 loans in the next five years.
Other shareholders in AccessBank Tajikistan, which commenced operations on March 29, 2010, are Access Microfinance Holding, an international organization that focuses on financial inclusion; the European Bank for Reconstruction and Development (EBRD), a financial institution owned by 61 countries and two intergovernmental institutions; and KfW Bankengruppe, a German development bank.
About the International Finance Corporation (IFC)
The International Finance Corporation (IFC) is a member of the World Bank Group, created to support financial private sector development, mobilize private capital and provide advisory and risk mitigation services to businesses. It uses loan and debt securities, equity investments and guarantees as instruments of poverty alleviation. It invests in financial institutions in emerging markets as well as provides technical assistance. IFC has 182 member countries that collectively determine its policies and approve investments. In 2009, IFC made new investments in developing countries that reached a total of USD 14.5 billion.
About AccessBank Tajikistan
AccessBank Tajikistan is a closed joint stock company with a full banking license. The bank offers financial services to micro- and small enterprises. The bank began operating on March 29, 2010, and it aims to open 17 branches and disburse 37,000 loans in its first five years of operations. The bank’s shareholders include the International Finance Corporation (IFC), the lending arm of the World Bank; the European Bank for Reconstruction and Development (EBRD), a financial institution owned by 61 countries and two intergovernmental institutions; and KfW Bankengruppe, a German development Bank.
About Access Microfinance Holding
Access Microfinance Holding AG (AccessHolding) was established in 2006 by LFS Financial Systems GmbH (LFS). It invests in microfinance institutions and aims to develop these investments through equity finance, holding services, and management services rendered by its technical partner, LFS Financial Systems GmbH (LFS). AccessHolding concentrates on start-up and early-stage microfinance institutions (MFIs), which are retail micro-lenders. It establishes new MFIs together with other partners, and transforms existing non-bank microlending institutions into full microfinance banks. AccessHolding has USD 8.2 million in assets.
By Eric McKay, Research Assistant
Bibliography
[1] IFC Press Release, “IFC Helps AccessBank Tajikistan Expand Access to Microfinance for Local Business”, March 29, 2010, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=7587926DBB95D2BB852576F500521B73
Additional Links
MicroCapital Universe: AccessBank Tajikistan: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AccessBank+Tajikistan
MicroCapital Universe: International Finance Corporation: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
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