Germany’s Kreditanstalt für Wiederaufbau (KfW) will provide 7 million euros or the rural housing finance in Tajikistan.

An agreement on this subject has been signed here by Ms. Kristin Laabs, Country Director, KfW Development Bank Tajikistan, and Mr. Nematullo Hikmatullozoda, Minister of Economic Development and Trade of Tajikistan. 

The German and the Tajik Governments reportedly agreed on the allocation of a loan of EUR 7.0 million to the Ministry of Economy and Trade Tajikistan for on-lending to local financial institutions for the Housing Finance Project.

The project is being implemented in the framework of the program, Development of Microfinance System in Rural Areas of Tajikistan.

 One of the main objectives of the project is in increasing access of households in rural areas to home loans owing to reduction in interest rates of financial institutions.  

The program participants include microfinance institutions Arvand, Imon International, the First MicroFinance Bank Tajikistan (FMFB Tajikistan) and Bank Eskhata.  

KfW, the Germany development bank - is a competent and strategic advisor on current development issues.  Reducing poverty, securing peace, protecting natural resources and helping to shape globalization are the main priorities of KfW.  On behalf of the German Federal Government it finances reforms, infrastructure and financial systems for socially and ecologically compatible economic growth.