TajiksodirotBank has become the second Tajik bank to join the EBRD’s Trade Finance Programme (TFP). With a limit of up to US$2mn, trade finance guarantees are provided to promote inter-regional as well as international trade opportunities.


The TFP was initiated in 1999 to support trade to, from and within the Bank’s 27 countries of operations. The EBRD guarantees payment obligations of local issuing banks to their international confirming counterparts in respect of trade-finance instruments.


The EBRD guarantees were introduced to free commercial partners from the need to deposit cash collateral and they thus remove one of the main obstacles to the financing of trade. EBRD guarantees are normally issued within 24 hours of receipt of relevant documentation.


More than 85 issuing banks in the bank’s region of operations participate in the programme together with over 500 confirming banks throughout the world. Turnover exceeds €
1.6bn, which has been used to finance or guarantee some 2,800 transactions.


A similar agreement was signed in Tajikistan with TajpromBank in December 2003 for US$500,000. Due to its immediate success and growing demand for trade finance support, the limit was increased to US$1.5mn in mid-2004.


The EBRD and TajiksodirotBank also recently signed a US$2mn loan under the Tajik Micro and Small Enterprise Finance Facility. Tajiksodirotbank provides a wide range of services to corporate clients, SMEs and individuals, including micro-lending, money remittances and deposit.