The agreement falls under ADB's Trade Finance Program (TFP), which provides guarantees and loans through banks to support international trade in ADB's developing member countries. ADB has a AAA credit rating.

"Trade is an essential part of an economy, but for companies to import and export raw materials or final goods, they need trade finance. Many companies, particularly smaller firms, find this hard to get hold of but we hope this agreement will help to remedy that," said Steven Beck, Head of Trade Finance in ADB's Private Sector Operations Department.

The scope of the TFP has expanded dramatically in 2010 with the first banks from Uzbekistan, Mongolia, and Bhutan joining the program while more banks from Azerbaijan also signed up. The TFP now partners with over 180 banks around the world. As of October, the TFP had supported US$1.98 billion in trade this year.

In addition to providing loans and guarantees in support of trade, the TFP links banks in developing countries with their peers in other developing or developed economies to foster relationships that can reap long-term rewards. Such activities also support economic integration with neighboring countries and further afield.

"Tajikistan's economy is showing solid growth but the country urgently needs to diversify its sources of growth. Making more finance available to support imports and exports of all kinds would help do that and, in the process, create more jobs at home," said Joji Tokeshi, Country Director of the Tajikistan Resident Mission.

ADB's Asian Development Outlook 2010 Update, published in September, forecast the Tajik economy to grow 4.5% this year and 5.5% in 2011. An estimated current account deficit of 7.8% of gross domestic product is likely to increase to 8.5% of GDP next year. This year, a disruption of rail cargo through neighboring Uzbekistan slowed imports into Tajikistan, but, with that now over, goods are likely to flow more swiftly into Tajikistan in 2011.

Most of Tajikistan's exports are in raw materials such as aluminum and cotton, and electricity while its major imports are petroleum products, aluminum oxide, and machinery and equipment. Tajikistan is also heavily dependent on remittances with around a half of its workforce employed overseas due to lack of employment opportunities at home.