CGFT Business Model and Framework

Since 2015, CGFT has adapted international best practice into local context to strengthen the financial sector of Tajikistan, provide better and more efficient access to finance for MSMEs, and create a wide-reaching developmental impact.

Photographer: Christian Vagt

Business Model of CGFT

CGFT is based on a secondary business model, using credit guarantees as instruments for benefiting Tajik MSME borrowers through its PFIs. Throughout the process, CGFT ensures the balance of interests among its target groups of MSME borrowers as well as lenders. CGFT’s proven model of success ensures:

Insurance to PFIs: The loan portfolios of the PFIs are covered by cash-backed guarantees

Support to MSMEs: Easier access to finance for borrowers through incentivized PFIs

International Security: CGFT’s financial viability is secured by its prominent international donors and German financial regulatory supervision

Local Security: All guarantee applications are checked against well-defined eligibility criteria developed in accordance with international best practices

Reliability: CGFT is a reliable partner for its PFIs with quick and uncomplicated payout mechanisms

Guaranteed MSME loans are disbursed by PFIs in Somoni (the Tajik currency) or US Dollars and range from USD 2,000 to USD 500,000 equivalent in value. CGFT guarantees a significant proportion of the oustanding value of each loan and offers TA services to mitigate risk.

CGFT currently cooperates with seven banks and microfinance institutions, all maintaining reputations as leading financial institutions in Tajikistan.

Founders of CGFT

Three of the most prominent European Development Finance Institutions have invested in and continue to support CGFT in its credit guarantee and TA activities:

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a member of KFW Group

FMO – Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.

OeEB – Oesterreichische Entwicklungsbank AG

Photographer: Sukhrob Khasanov

Corporate Framework

CGFT is manged by LANDT GmbH, a international development finance company dedicated to setting up and operating credit guarantee funds and providing TA and development finance consulting.

Backed by CGFT’s best practice credit technology, a diversified range of customer-oriented credit products and optimized risk management through its TA services, PFIs are able to expand their credit operations to reach new business groups facing barriers to their access to finance and help their MSME clients to realize their full growth potential.


The institutional profile of CGFT provides detailed information about the context of Tajikistan, set-up, achievements and outlook of the fund.

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