Rural Finance Project

The overall goal of the Asian Development Bank-funded Rural Finance Project in Central Asia (Kazakhstan, the Kyrgyz Republic, Tajikistan, Uzbekistan, Azerbaijan, and Mongolia) was to promote viable and sustainable rural financial systems. The project brought together rural finance experts and market participants, as well as other stakeholders, to encourage the debate on issues facing rural financial systems and to disseminate recommendations. Our team of international finance consultants conducted a study on rural finance in the Central Asian republics and developed the methodologies to implement reform of the rural financial sector. The team engaged in analyzing and diagnosing failures in rural finance projects by conducting research concerning rural financial markets and rural economy activity. The team analyzed the capacity of local financial service producers and has identified the appropriate financial products and services for local specifications, particularly in rural regions that have been neglected by financial institutions.

Throughout the project, special emphasis was placed on micro and small borrowers and on exploring the impacts of informal activities, including informal lending. Specifically, the capacity of local financial service producers was analyzed, with the aim of identifying appropriate financial products and services for local specifications, particularly in rural regions that have been neglected by financial institutions. This in-depth research helped facilitate the development of effective rural financial markets. In addition, the team determined methods to strengthen the legal and regulatory environments governing rural finance, to help ensure the sustainability of rural financial institutions and rural economies in the region.