Question 1

What is Imon International?

Accepted Answer

Imon International is a micro-deposit organization (MDO) operating in Tajikistan, specializing in microfinance services for micro and small enterprises. As one of the country's leading microfinance institutions, it serves over 100,000 active borrowers across Tajikistan.

The organization is regulated by the National Bank of Tajikistan and provides a comprehensive range of financial services including microcredit, deposit-taking, financial leasing, Islamic banking, and financial consulting. Imon International is particularly focused on serving grassroots businesses, farmers in rural mountainous areas, and vulnerable segments of the population, including women and young entrepreneurs.

Question 2

When was Imon International founded?

Accepted Answer

Imon International traces its origins to 1999, when the National Association of Business Women of Tajikistan, in partnership with the international NGO Mercy Corps and financial support from USAID, launched a microcredit program focused on female empowerment.

In 2004, following the adoption of Tajikistan's Law "On Microfinance Organizations," the program was formalized as the micro-credit Fund "IMON." The organization evolved further in 2008 when it became a commercial organization. In 2012, it transformed into a micro-credit deposit organization under the name "IMON INTERNATIONAL," obtaining its deposit-taking license in 2013.

Question 3

Where is Imon International headquartered?

Accepted Answer

Imon International is headquartered in Khujand, located in the Sughd Region of northern Tajikistan. The specific address is 17 microdistrict, 2, Khujand, Tajikistan.

Khujand is Tajikistan's second-largest city and serves as an important commercial center in the northern part of the country.

Question 4

Where does Imon International operate?

Accepted Answer

Imon International maintains a wide regional presence across all four regions of Tajikistan. As of 2021, the institution operates through 27 branches and 103 banking service centers distributed throughout the country.

The network provides extensive coverage in both urban centers and rural mountainous areas, with a particular focus on underserved communities. More than two-thirds of the institution's client base consists of micro and small enterprises in rural and remote areas.

Question 5

What services does Imon International offer?

Accepted Answer

Imon International provides a comprehensive range of financial services similar to traditional banking operations. Core offerings include individual and solidarity group loans for micro-entrepreneurs, deposit-taking services, financial leasing, and financial literacy training.

In 2019, the institution obtained a license from the National Bank of Tajikistan to open an Islamic banking window, which became operational in 2022. The institution also offers digital services, including a Viber chatbot launched in 2018, which was the first of its kind in Tajikistan, allowing customers to access information about products, services, and carry out basic financial transactions.

Services include specialized "green" loan products and free training programs on effective farming, construction in rural areas, and financial literacy for women. The institution provides most traditional banking services, with regulatory limitations only on loans exceeding TJS 500,000 (approximately USD 44,200) and certain other specialized services.

Question 6

What makes Imon International unique?

Accepted Answer

Imon International stands out as Tajikistan's largest provider of micro-loans in terms of client base, with the highest number of borrowers and the fourth-largest total assets among microfinance institutions in the country. The institution has achieved exceptional operational efficiency while maintaining a strong social mission focused on financial inclusion.

The organization was certified for client protection compliance in 2014, recertified in 2017, and passed a surveillance audit in 2019, demonstrating its commitment to customer protection principles. In 2021, Imon International received a social rating of "sA-" from MicroFinanza Rating, and in subsequent years achieved the GOLD level certification for Customer Protection Principles, the highest level available.

The institution has maintained strong partnerships with prominent international development finance organizations since 2005, including being a long-standing partner of the European Bank for Reconstruction and Development (EBRD). In 2022, IFC provided a crucial $5 million local currency loan to support lending to micro and small enterprises affected by COVID-19.

Question 7

What type of financial institution is Imon International?

Accepted Answer

Imon International is classified as a Micro-Deposit Organization (MDO) under Tajikistan's regulatory framework. This is a specialized type of financial institution regulated by the National Bank of Tajikistan that is authorized to provide microfinance services and accept deposits from the public.

MDOs in Tajikistan operate under specific regulatory requirements and supervision from the central bank, submitting detailed monthly prudential reports and subject to regular audits. This regulatory classification positions the institution between traditional microfinance organizations and commercial banks, allowing it to offer a broader range of services while maintaining its focus on micro and small enterprise lending.

The institution has expressed plans to transform into a full commercial bank to better serve clients whose financial needs exceed current regulatory limits on loan amounts.

Question 8

Who are the shareholders of Imon International?

Accepted Answer

Imon International has a diversified ownership structure consisting of prominent international development finance institutions. Following a significant ownership restructuring in June 2021, when the IMON Microcredit Fund exited to comply with National Bank of Tajikistan regulations, the current shareholders include Mikro Kapital (Luxembourg) as the largest shareholder with 42.7% of shares, the European Bank for Reconstruction and Development (EBRD) with 17.9%, and the Netherlands Development Finance Company (FMO) with 17.9%.

Additional shareholders include Triple Jump (10.0%), the Mennonite Economic Development Associates (MEDA) with 8.7%, and two individual founding members. The 2021 transaction involved international shareholders paying USD 5.4 million to maintain the institution's operations and ensure compliance with regulatory requirements while continuing to serve over 100,000 micro businesses and individual borrowers.

Question 9

How has Imon International performed financially?

Accepted Answer

Imon International has demonstrated strong financial performance and operational efficiency. As of March 2021, the institution maintained good diversification across its 27 branches, with high portfolio granularity where the top 10 borrowers accounted for only 0.5% of the gross loan portfolio.

The institution has achieved operational self-sufficiency exceeding 106%, with a portfolio yield around 28-30%. The loan portfolio represents approximately 91-92% of gross revenues, indicating strong focus on core lending activities. Deposit mobilization has been successful, with a stable deposit base and low concentration risk, as the top 20 depositors account for only 7.1% of all deposits.

Since 2008, IFC has provided local currency funds totaling $17.5 million to boost lending to micro-entrepreneurs. The institution has maintained adequate liquidity levels and continues to attract support from its international shareholder base for both financial and technical assistance.

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About Imon International in Tajikistan

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