AKDN: Microfinance in Tajikistan

The report states that the Aga Khan Development Network established the First Microfinance Bank Tajikistan (FMFB-T) in 2003 as the country’s first fully licensed commercial bank with microfinance as its principal focus. The report states that FMFB-T currently serves around 20,880 clients with a loan portfolio exceeding US$35 million and nearly 165,000 depositors, with over 70 percent of clients living in rural and remote areas. The report states that Tajikistan is one of the poorest former Soviet republics, and while it has made steady progress in reducing poverty and growing its economy, job creation has not kept pace with population growth, leaving the economy vulnerable to external shocks and limiting the private sector’s role. The report states that FMFB-T offers microfinance and SME loan products, deposit accounts, remittances, cards, foreign exchange, domestic and international money transfers, and ATM services. The bank has launched a remittance-linked card called Korti Oson and developed remittance-linked financial products to direct funds toward housing, education, health, and asset building. The report states that FMFB-T collaborates with EBRD, KfW, the Ministry of Economic Development and Trade, and IFC on housing loans, climate resilience financing, and digital financial literacy training launched in May 2019. The report states that FMFB has partnered with UN WFP to deliver cash assistance in rural regions, worked with UNHCR to lend to Afghan refugees, and is building the Total Access Program with Pamir Energy in Gorno-Badakhshan.