The proposed project is to provide a senior loan of up to $5.0 million and additional GTFP Guarantee Facility for up to $2.0 million to the Open Joint Stock Company Bank Eskhata (the “Bank” or “EB”) to support the Bank’s MSME lending operations throughout Tajikistan. EB is an existing IFC client that has been providing credit and other financial services in Tajikistan with focus in the northern part of the country. IFC would play an important developmental role by providing EB with additional longer term resources for on-lending to MSMEs, which have difficult access to funding. Established in 1993, Eskhata Bank is one of the better managed medium banks in Tajikistan with enhanced presence in the northern part of Tajikistan. EB is a transparent financial institution, having demonstrated its full commitment to developing and adhering to best practice corporate governance standards and active development of MSME lending. EB is currently the fifth-largest bank in Tajikistan ranked by total assets, with approximately 6.7% market share of total banking system. Eskhata is headquartered in Khujand city, the Sughd region in the northern part of Tajikistan, and has a network of nine branches located in Khujand, the other major centers of the Sugd Region, and the capital city Dushanbe. The Bank offers traditional range of banking services with greater focus on development of its lending to MSMEs that play an important role in the economy of Tajikistan. As of December 31, 2008, EB MSME loans represented over 70% out its total loan portfolio.