IFC, a member of the World Bank Group, is providing a loan of $2 million equivalent in Tajik Somoni to microcredit deposit-taking organization Humo in Tajikistan to help underserved populations improve housing conditions and for micro and small businesses to access finance.
On the housing front, there is a pressing need to improve living conditions in Tajikistan, a low-income country, where most homes are built with substandard materials, leaving them exposed to natural hazards and creating challenges in extreme seasonal weather. Furthermore, access to financing, to purchase and improve homes, is extremely limited.
Micro, small, and medium enterprises (MSMEs) also face limited access to finance. According to the SME Finance Forum, the countrys MSME-finance gap is estimated at around $1.5 billion, equivalent to 18.5 percent of aggregate GDP. IFCs financing for Humo will help address these financing gaps. This is IFCs first loan to Humo and the second to a Tajik financial institution to support micro-housing in recent months. Both loans are being provided through currency swaps with the International Development Associations Private Sector Window Local Currency Facility.
Mavsuda Vaisova, General Director of Humo, said: We are looking forward to working with IFC to help change the predicament that Tajikistans micro and small businesses face when they want finance to grow their operations. Apart from the financing, we are eager to tap into IFCs…