With the outstanding support of the Government of Tajikistan as well as the donor community, a Revolving Fund has been established in Tajikistan. AFC Agriculture and Finance Consultants GmbH acted as a founder of this fund, which will provide long-term sustainable access to internal refinancing means in local currency for financial institutions and banks in Tajikistan.
The Fund provides an efficient and transparent platform for the attraction of additional funds from regional or international donors with the aim of supporting the rural development of Tajikistan.
Based on the consent of the President of Republic of Tajikistan on 7 June 2017 the Revolving Fund was officially registered in the Tax Committee of Tajikistan. The National Bank of Tajikistan and the Ministry of Justice amended the legal environment for the Revolving Fund’ activities and on 19 September 2017 the “Refinancing Fund” obtained its license.
In a joint meeting on 4 October 2017, the donors, AFC as founder and the Board of Trustees met officially for a first meeting of the Fund. The Board of Trustees, composing from the nominees of the Government of Tajikistan, Donor Development Council and banking community of Tajikistan, was officially appointed and the responsibility of the management of the Refinancing Fund was handed over.
The Fund gets continuous support to become a fully sustainable institution which supports development of the Tajikistan economy, its MSMEs in rural areas and therefore the population of Tajikistan.
The establishment of the fund has been supported by the German Development Bank (KfW) as part of the framework of the German regional financial cooperation with the Republic of Tajikistan, funded by German Federal Ministry for Economic Cooperation and Development (BMZ), with additional support of Asian Development Bank (ADB).