IFC helps Tajikistan expand ways to finance small businesses

The International Finance Corporation (IFC), the private-sector arm of the World Bank, is helping the Tajik government expand access to finance, including using movable assets as loan collateral, the IFC office in the country said Tuesday.

The IFC improves access to finance for entrepreneurs and small businesses in order to spur job creation and economic growth.

In Tajikistan, many entrepreneurs and small businesses lack traditional collateral, like land. Using movable assets such as equipment or accounts receivables as collateral will help them obtain financing, the office said.

Meanwhile, the office noted that the IFC is supporting the Tajik government's effort to develop the appropriate legal and institutional framework.

"There is an urgent need to create a favorable framework for movable collateral lending to increase access to financing," said Valeriy Kim, deputy chairman of the Association of Banks of Tajikistan.

The IFC hosted in Dushanbe on Monday a conference followed by a series of training sessions on movable asset-based lending for financial and non-bank financial institutions.

The move is part of a World Bank project aimed at strengthening the financial infrastructure in central Asia. The project is funded by the government of Switzerland.

Working with private enterprises in about 100 countries, the IFC uses its capital, expertise and influence to help eliminate extreme poverty and boost shared prosperity. Endi