Message from the Chairman

Increasing the bank's capital, fruitful activities to attract free funds from the population, and participation in financing programs to support small and medium businesses made it possible to increase the volume of loans issued by 2.2 times compared to the same period in 2019.

The Bank continues to cooperate with international financial organizations in order to attract additional foreign investments into the country's economy. To date, the Bank has managed to attract funds in the amount of 69.6 million US dollars. With the help of credit funds, 90 investment projects are being implemented in 51 cities and regions of the country for the development of various sectors of the economy.

Amonatbank signed loan agreements with the National Bank for Foreign Economic Activity and the Industrial and Construction Bank of the Republic of Uzbekistan for trade financing in the amount of US $43 million. It should be noted that during a meeting with the management of the National Bank for Foreign Economic Activity of Uzbekistan, on the basis of a loan agreement in the amount of US $33 million, an additional agreement was signed, in which the parties reached an agreement on extending the loan term from 1 year to 3 years and increasing the amount of loans for one application from 1 to 3 million US dollars. This initiative is aimed at supporting domestic entrepreneurs.

In addition, in order to support local entrepreneurs and attract additional foreign investment into the country's economy, the issue of reducing interest rates for loans was discussed within the framework of the next session of the Interparliamentary Committee of the Republic of Tajikistan and the Republic of Uzbekistan on the development of economic and trade cooperation. The interest rate on loans at the expense of the National Bank for Foreign Economic Activity of Uzbekistan for a period of 1 year is 4.5% per annum, and on loans with a maturity from 2 to 3 years is set at 5.5% per annum, which is 3.5 percentage points lower than the previous set rates, respectively.

In order to increase public confidence in the banking system, particularly in the field of lending, Amonatbank revised and optimized its credit policy.

In this regard, the Bank takes all necessary measures to increase the volume of lending to entrepreneurs in the field of industrial production, especially in the production of import-substituting and export-oriented products, rural development, tourism and crafts, creating favorable conditions for businesses and the population to access financial resources, as well as providing microloans, especially to residents and entrepreneurs in remote areas of the country.

Within this framework, depending on the current needs of customers, the Bank develops and offers new credit products, each of which provides certain benefits.

In particular, in connection with the announcement of 2019–2021 as the "Years of Rural Development, Tourism and Folk Crafts", the Bank provided loans in the amount of 5.5 million somoni to 322 entrepreneurs engaged in folk crafts during the first 11 months of this year at its own expense. The interest rate on these loans was reduced by 2 percentage points, falling from 20% to 18% per annum.

Overdraft lending through Bank payment cards has become a priority area of the Bank's activities, and therefore the procedure for its provision has been simplified, and its validity period has been extended to 60 days. The annual interest rate on them also decreased by 2 percentage points.

At the same time, in order to support clients, particularly to assist in the development of small and medium-sized businesses in the country, the amount of microloans previously provided in the amount of up to 10 thousand somoni without collateral with a guarantee was set at 20 thousand somoni.

In order to contribute to the achievement of one of the country's strategic goals — ensuring food security — the Bank launched an initiative to provide concessional loans called "Kishovarz". Customers can receive on preferential terms from 3 thousand to 500 thousand somoni (or in foreign currency) for a period from 6 months to 36 months at 18% per annum in national currency and at 10% per annum in foreign currency.

At the same time, in order to promote the sustainable implementation of state programs in the field of social support for citizens, especially in the current period, the Bank launched a campaign to provide soft loans called "Tahsil – 2020" at 18% per annum.

This promotion is valid from August 1 to September 30, 2020 and is aimed at reimbursing the cost of purchasing school uniforms and accessories and paying for education contracts.

In the future, the Bank will continue its efforts to increase public confidence in the banking system by expanding access to credit, developing small and medium businesses, supporting domestic producers, improving the social level of the population, reviving folk crafts and promoting sustainable economic development.

We are confident that these measures will contribute to the economic development of the country and at the same time improve the well-being of people.

The Bank promotes the expansion of work on the implementation of the digital economy and the introduction of digital technologies in the socio-economic sphere and, on this basis, simplifies and performs operations, reduces the use of cash in circulation, expands non-cash payments, and prevents operational risks. The process of automation and technical equipment of the branches is being strengthened through the purchase and installation of automated electronic programs.

To ensure the transparency of receiving and transferring utility funds, as well as to facilitate the awareness of customers about the state of debt and repayment of funds, the Bank purchased the program "Receiving Utility Funds", which as of November 30 of this year was connected to 585 banking service centers. Compared to the same period in 2019, the number of connected centers increased by 118. In particular, this year there are 112 connection points.

Taking measures to expand the practice of using non-cash payments in the country's monetary circulation and the widespread implementation of this procedure when paying for services, the Bank has established relationships with 7,760 budgetary and non-budgetary organizations under the "Salary Project", which is 28 units more than for the similar period in 2019.

As of November 30, 2020, the number of payment card holders reached 1.542 million. Amonatbank is taking consistent steps to create banking service centers, increase the availability of banking services for the population, and create favorable conditions for work and service in banking service centers.

Amonatbank occupies a significant place in the banking system of the country due to the number of its branches. Today, 23% of branches of the banking system and 36% of its banking service centers belong to Amonatbank. In particular, 143 service centers of Amonatbank operate in Sughd region, 40 in GBAO, 168 in Khatlon region, 139 in RRS and 56 in Dushanbe.

In this regard, one of the main tasks of the Bank in accordance with the priority areas of the Bank's activities is to create favorable conditions for work and service and unobstructed access of the population to banking services through a wide network.

Therefore, since 2019, the Bank has been implementing an initiative to relocate banking service centers to populous areas which are accessible to tourists. To date, 189 units or 34.6% of banking centers, 21 of which correspond to the reporting period, have been relocated near international roads, inside shopping centers, markets and intersections.

Also, the activities of 20 evening and day-and-night cash service offices in Dushanbe, Gissar, Isfara, Khujand, Bokhtar, Kulyab and Khorog were strengthened, which provide various banking services to the population and tourists. 8 of these cash service offices were created during the reporting period.

Timely execution of the instructions of the Founder of Peace and National Unity, Leader of the Nation, President of the country, His Excellency Emomali Rahmon, and the goals set by the Bank in accordance with the priority areas of activity for 2020, made it possible to maintain the stable development of the industry and the implementation of key indicators for the first 11 months of this year.

Therefore, as of November 30, 2020, the level of the Bank's liquidity as a key performance indicator remained stable, and today the Bank fulfills all its obligations to depositors, as well as domestic and foreign development partners, in a timely manner.

During this period, the Bank's profit before tax amounted to 64.6 million somoni and after tax — 49.8 million somoni, which increased by 18% compared to the same period in 2019.

Compared to the same period in 2019, the Bank's assets increased by 15%, liabilities by 16%, the balance of deposits of legal entities and individuals by 10%, the loan portfolio by 45%, and the total capital of the Bank by 6.5%.

To conclude, I would like to note that the Bank will continue working on fulfilling the instructions of the Founder of Peace and National Unity, Leader of the Nation, President of the Republic of Tajikistan Emomali Rahmon, successful implementation of strategic plans, and strengthening our positions in the interbank market, while improving the quality of services provided and reducing banking risks.

Also, the necessary measures will be taken to celebrate the 30th anniversary of the state independence of our beloved Tajikistan at a high political and cultural level. I sincerely thank the partners and customers of the Bank for their trust and support, and strongly believe in further fruitful cooperation.

Chairman of the Board of the SSB of the Republic of Tajikistan
Salimzoda Alijon Abdujalol