Cdel Arvand-FY24

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  The proposed Project consists of a straight senior loan to Closed Joint-Stock Company Bank “Arvand” (Arvand or the Bank) – a private bank in Tajikistan, an IDA country, with a strong focus on lending to micro and small enterprises (MSEs). The three-year loan would provide much needed mid-term uncollateralized funding in Tajik Somoni (TJS or LCY) to Arvand to support the Bank in servicing the most vulnerable clients in the remote under-/ unbanked regions of Tajikistan. Out of the total loan proceeds, up to US$2.5 million will be dedicated to housing microfinance projects, up to US$1.25 million will be dedicated to women-owned MSEs (WMSEs), and up to US$1.25 million will be directed to support the Bank’s lending program to MSEs (the Project) in the challenging economic environment caused by the consequences of the COVID-19 crisis, further exacerbated by the geopolitical tensions. As part of the BOP program, the Project will use IDA PSW’s Local Currency Facility (“LCF”) to source local currency, as well as the Pooled First Loss Guarantee (“PFLG”) from IDA PSW’s Blended Finance Facility (“BFF”).