CGFT CAPITAL POOLING
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Credit Guarantee Fund Tajikistan (CGFT) is the first SME partial credit guarantee fund in Tajikistan. The guarantee fund will partner with banks that are strongly committed to developing their SME portfolio in Tajikistan. The fund's establishment follows the success of a similar DEG credit guarantee program in Afghanistan. CGFT will take with it the lessons of success proven in the challenging Afghan market.
What is our funding objective?
The aim of the fund is to help banks "kick start" SME lending, explore new industries and build credit history. Partial credit guarantee schemes are acknowledged to be the most market-friendly solutions to overcoming major credit barriers to SMEs in developing and transitioning economies.The SME guarantee fund processes first guarantee applications individually and afterwards on a portfolio basis. They charge risk adjusted fees for each accepted guarantee and a monitoring fee on monthly loans disbursements. Besides issuing guarantees,, the fund management is actively involved in the training and the implementation of an improved SME lending technology within the partner institutions (on-the-job training, certification of LOs and implementation of new products/processes – all financed through the technical assistance budget).
Why do we fund this investment?
As CGFT's activities are highly innovative and unproven in Tajikistan, funding sources are scarce. By supporting CGFT, FMO provides the highly needed capital to facilitate greater access to finance for SMEs. From another perspective, this transaction will help FMO to build up valuable knowledge in market development and SME loan guarantee funds, potentially producing similar schemes in other challenging markets.
- Region
- Europe & Central Asia
- Country
- Tajikistan
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 12/20/2013
- Total FMO financing
- EUR 2.50 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B