ADB, Eskhata Bank Partner to Expand Green Finance for MSMEs in Tajikistan

“This project underscores ADB's commitment to private sector development in the country,” said Ko Sakamoto, ADB Country Director for Tajikistan.

The Asian Development Bank (ADB) and Eskhata Bank Open Joint Stock Company have signed new financing agreements aimed at expanding access to green and affordable finance for micro, small, and medium-sized enterprises (MSMEs) in Tajikistan—one of the country’s most important engines of job creation, entrepreneurship, and inclusive economic growth.

Under the agreements, ADB will extend a local currency loan equivalent to US$10 million to Eskhata Bank. This marks ADB’s first-ever local currency loan to a commercial bank in Tajikistan, a milestone expected to reduce foreign exchange risk for borrowers and contribute to greater stability across the financial sector.

To further enhance the project’s developmental impact, the financing package also includes a partial credit guarantee of up to US$5 million from the Asian Development Fund’s Private Sector Window (ADF–PSW). This guarantee is designed to help lower lending costs, expand credit availability for MSMEs, and unlock private capital for green and resilient business investment.

“This project underscores ADB's commitment to private sector development in the country,” said Ko Sakamoto, ADB Country Director for Tajikistan. “Our partnership with Eskhata Bank will benefit hundreds of businesses, create jobs, drive innovation, and contribute to a more resilient economy.”

Strengthening MSME Finance and Expanding Green Lending

Eskhata Bank—one of Tajikistan’s leading commercial institutions—has a strong record of providing financial services tailored to MSMEs and promoting digital financial solutions. The new financing will allow the bank to:

• Expand lending to MSMEs across urban and rural areas

• Support businesses investing in energy efficiency, renewable energy, and other green technologies

• Offer tailored products to help entrepreneurs adopt climate-resilient and environmentally responsible practices

• Deepen financial inclusion in underserved regions

This initiative arrives at a critical time, as many MSMEs in Tajikistan face rising climate risks, limited access to credit, and high borrowing costs that constrain their ability to grow and modernize.

ADF–PSW: Supporting Frontier Markets and Green Growth

The Asian Development Fund (ADF) provides grant support to ADB’s poorest and most vulnerable members. Its Private Sector Window, created in 2020 and extended in 2024, helps unlock financing in frontier markets by offering grant-funded guarantees that address common private sector constraints such as:

• High perceived risk

• Insufficient collateral

• Foreign exchange-related vulnerabilities

Through this window, ADF–PSW helps local banks like Eskhata expand MSME lending while supporting investments that advance climate resilience and green growth.

A Strong and Longstanding Partnership

Since Tajikistan joined ADB in 1998, the partnership has delivered wide-ranging infrastructure and development gains, including:

• Rehabilitation of major road corridors such as Obigarm–Nurobod, Dushanbe–Bokhtar, Ayni–Panjakent, Dushanbe–Tursunzade, and Vose–Khovaling

• Upgrades to key irrigation and water supply systems

• Construction and modernization of hospitals and schools

• Strengthening of the national power grid, including reconnection to the Central Asian power network

• Rehabilitation of major hydropower plants such as Nurek and Golovnaya

These investments have supported Tajikistan’s continued progress toward economic diversification, improved connectivity, and greater energy security.

The new partnership with Eskhata Bank builds on this foundation by empowering MSMEs—especially those pursuing green and climate-resilient investments—to contribute to sustainable, inclusive growth across the country.