History

“Bovari va Hamkori”, translated as “trust and cooperation” from Tajik language was established in September of 2008 in Dushanbe Tajikistan, in the form of a Closed Joint Stock Company (CJSC). “Bovari va Hamkori” – is the first and sole provider of wholesale funding to MFIs in the country (an apex), founded with the purpose of providing financial sources to microfinance institutions of Tajikistan.

The organization was initiated by Association of Microfinance Organizations of Tajikistan and CJSC “Agroinvestbank” in respond to demand of MFO for financial sources, first of all for small and medium which work in rural areas of Tajikistan and serve poor population.

 Since 2005, AMFOT with support of German Technical Cooperation (GTZ) and Interchurch Organization for Development Cooperation (ICCO), and in partnership with the First Microfinance Bank of Tajikistan (FMFB), has been implementing a program of wholesale lending to small and medium sized MFI Support Fund, which services were highly demanded.

The Fund’s loan portfolio was about $300.000 and served as a refinancing source for small MFIs – a good alternative to hard-to-get donations. It provided the small MFIs with an opportunity of getting initial experience of working with commercial funding. In three years the Fund disbursed 15 loans to 10 MFIs for the total amount of $480.000. The end recipients of the Fund’s loans were over 8900 enterpreneurs.

During the Fund’s existence 24 MFIs gained experience in preparing loan applications, calculating and projecting financial indicators, developing a standard set of documents for lenders; 10 MFIs went through the whole credit cycle and received their first favorable credit histories. Later 9 MFIs went to work with commercial funding (Asian Development Bank, Frontiers, Deutsche Bank, Oikocredit, Agroinvestbank, Eskhata Bank ets.). During these three years the portfolio at risk in those MFIs was 0%.

Therefore by 2008 after 3 years of operations, the necessary experience was gained, and establishment of “Bovari va Hamkori” was a logical continuation of this activity.

At the result of first year activity “Bovari va Hamkori” disbursed 9 loans to 7 MFO for the amount of $703500, the last receivers were 9000 enterpreneurs. 80% of the loans were provided in rural areas, 40% of the receivers were women.

Vision

To become a sustainable, model national apex institution meeting the financial needs of local MFIs.

Mission

To support the development of small and medium-sized MFIs in Tajikistan in order to contribute to the development of entrepreneurship and effectively solve the issue of poverty in the country. At the same time organization aims to reach long term sustainability, under this conditions it will be possible to implement the institution’s mission in the long term.

Main goals

Mobilize financial resources to microfinance sector of Tajikistan in order to:

• Support growth and development of the country’s MFIs
• Promote financial services in the remote and rural areas of the country
• Contribute to poverty elimination by creating and sustaining jobs
• Contribute to improving quality standards of service and increased transparency of MFIs activities
• Reach long term financial sustainability

To achieve the planned aim and realization of mission “Bovari va Hamkori” plan completely reinvest it’s income for extension of its activity in period of three years.

Strategy

Attract resources to microfinance sector of Tajikistan and its effective use for:

• Establishment an equal growth condition for MFO
• Improve the excess of MFO to financial sources and assets
• Promote financial services in the regions
• Improve the standard of quality service and achieve transparency if MFO activity
• Assist on poverty reduction
• Support entrepreneurship
• Refunding an income of MDO at realization of mission first 3-5 year activity

Values

• Responsible funding
• Cooperation for development
• Flexible approach and innovation
• Transparency as a prerequisite for trust
• Professionalism and loyalty

Positioning

Cooperation directed for institutional development and capacity building for small and medium MFO in the regions.