Micro and Small Enterprise Facility (TMSEF)

The Tajikistan Micro and Small Enterprise Facility (TMSEF) is an institution-building project designed to implement lending to micro and small enterprises (MSEs) in selected commercial banks. The project started in 2003 with financial assistance from several international development programs, coordinated by the European Bank for Reconstruction and Development (EBRD). 

TMSEF works with four leading Tajik banks and 40 of their branches. Together with our clients we have set up MSE lending as a new business line. The corresponding departments were created from scratch in the client banks and their branches. The TMSEF became the dominant and stable source of financing for Tajik MSME and agricultural enterprises. Over the course of the assignment LFS achieved the objective of building the skills and providing its client banks with the tools to make MSE lending a profitable business. Various types of loan products were implemented, such as express, micro and SME loans. In the framework of a subproject LFS introduced agricultural lending in the partner banks.

LFS’ services comprised credit advisory and institution-building services, learning and development, strengthening of the bank’s internal audit and control functions, and developing and implementing a MIS for handling and managing respective loan portfolios and assistance in their processing.