Priorities
The last country strategy was approved in November 2005. It outlines the following strategic priorities for the Bank in Tajikistan:
Fostering the private sector through:
- credit lines at the micro, small and medium sized enterprise (MSME) level
- direct loans and equity investments through the instruments of the Early Transition Countries Initiative (ETCI) (Direct Lending and Investment Facilities)
- the Trade Facilitation Programme.
Strengthening the financial sector through equity investments, technical assistance and institutional building programmes to improve credit and financial management skills and corporate governance.
Supporting public infrastructure projects in such sectors as aviation, road maintenance, telecommunications, hydropower, municipal infrastructure, with limited recourse to a sovereign guarantee or by blending Bank resources with grants to achieve concessional terms of financing.
Maintaining a constant policy dialogue to help improve the investment climate and the development of the private sector, in cooperation with the other international financial institutions (IFIs).
Financing the private sector
The Bank will continue to focus on micro and small businesses (MSME), through further development of MSME credit lines administered by local banks and non-bank financial institutions. A particular focus will be to develop the branch networks in secondary cities and towards the rural areas, thus increasing the availability of finance to the smallest businesses.
Strengthening the financial sector
Despite significant improvement and consolidation, the banking sector still has a limited impact on economic development. The Bank will be more proactive in advocating increased capitalisation and will remain ready to support the entry of new (local) private and regional and international investors, including Russia and Kazakhstan, and will seek further opportunities for equity participation, in order to strengthen the banking sector’s capacity.
Supporting critical infrastructure
The investment needs in infrastructure are considerable and remain critical to the country’s development as well as to the attraction of foreign direct investment (FDI), but progress is constrained by limited public resources and restrictions on sovereign borrowing. The Bank will consider financing non-sovereign infrastructure that produces cashflow to meet debt repayments without recourse to sovereign guarantees. This could be the case in the hydropower sector, which should develop considerably in the coming years.
Policy dialogue
During the strategy period, the Bank will strengthen its policy dialogue with the authorities in order to improve the investment climate, governance, transparency and to support reform efforts. The Bank will coordinate closely with other IFIs and the business community within the existing donor coordination structures. As noted above, the Bank will seek co-financing opportunities with other IFIs and bilateral institutions to mobilise greater resources, especially in the hydropower sector and in projects that could enhance regional cooperation.
