Agreement on EurAsEC Anti-Crisis Fund Loan to Tajikistan Signed
Almaty, 26th July 2010 – On Friday an Agreement to extend a $70-million loan facility to Tajikistan from the EurAsEC Anti-Crisis Fund (ACF) was signed in Dushanbe. On behalf of the Republic of Tajikistan the Loan Agreement was signed by Minister of Finance Safarali M. Najmiddinov and on behalf of the Eurasian Development Bank (EDB) as Manager of the EurAsEC ACF’s resources – by Sergei I. Shatalov, Managing Director of the Fund.
Tajikistan is the first member state of the ACF to avail itself of the Fund’s resources. The resolution to that effect was adopted by the ACF Council on 18 June.
The loan has a maturity of 20 years (including five year grace period), and carries a fixed interest rate of 1 percent per annum.
The Government of Tajikistan intends to use the loan to support the State Budget in 2010, particularly, to maintain budgetary financing of social sectors (education, health, and social protection) at the planned levels.
In addition, the loan will also support the public finance management reforms agreed upon with the Government of the country. These reforms aim to increase the stability of the budget system and the efficiency of the use of public funds. Particularly, the reforms envisage the strengthening of the accountability of public spending by creating and strengthening the institutions of external and internal audit, as well as by improving public access to budget information.
These important reforms will be further developed in the course of preparation and implementation of the subsequent ACF’s loans.
“Results of the first half of 2010 showed clear signs of economic recovery, but budget revenue growth was somewhat slower than we had planned” - stated Minister Najmiddinov after the loan signing ceremony – “In this situation, the ACF’s loan provides an effective and timely support to our country and will enable us to maintain the financing of the social sectors at the pre-crisis levels”.
The ACF Managing Director Shatalov noted that “the signed Agreement is a benchmark in the fruitful cooperation between Tajikistan and the EDB as Manager of the ACF funds”. Sergei Shatalov also stressed that the Government and the EDB are currently formulating the EDB Country Partnership Strategy, under which financial loans will be just one form of cooperation, the other being investment loans. Thus, options for investment cooperation are also being considered. Such investment cooperation will strengthen the country’s export potential and the welfare of all citizens of Tajikistan.
Additional Information
The EurAsEC Anti-Crisis Fund (ACF) of US$8.513 billion was established on 9 June 2009 by the Governments of Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Russia and Tajikistan. The ACF mission is to assist its member states overcome the implications of the global financial crisis, ensure economic and financial stability in these countries, and to foster integration in the region. The member states appointed the EDB manager of the ACF and entered into an agreement with the Bank to that effect.