EFSD Council Resolves to Extend Availability Period for Financial Credit to the Republic of Tajikistan
Moscow, December 11, 2017. The Council of the Eurasian Fund for Stabilization and Development (EFSD), an entity managed by the Eurasian Development Bank (EDB), has extended the period of availability for the financial credit to the Republic of Tajikistan from November 15, 2017, to March 1, 2018.
The resolution reflects positive assessment by the EFSD Council of the measures taken by Tajikistani authorities to minimize risks associated with resurgence of exchange rate multiplicity. In particular, they have adjusted the official exchange rate calculation formula to proportionately represent exchange operations in the intrabank and interbank segments of the FX market, removed administrative restrictions on exchange rate setting by commercial banks, and reached a working arrangement on further improvement of the official exchange rate application mechanism.
The decision regarding expediency of continued support for the Reform Program developed by the Government and National Bank of the Republic of Tajikistan (the "Program") with the EFSD financial credit will be made on the basis of Resources Manager report on compliance with EFSD Council recommendations, including legislative consolidation of working arrangements designed to minimize risks associated with resurgence of exchange rate multiplicity, and adoption of measures, as agreed with the Resources Manager, to settle overdue debts owed to the Resources Manager by a legal entity where the Republic of Tajikistan is a shareholder.
Out of a total of US$ 40 million slated for Program support, one US$ 20 million tranche has been disbursed to date. The Reform Program supported with the EFSD financial credit is focused on steps intended to improve economic sustainability of the Republic of Tajikistan to external shocks by increasing exchange rate flexibility, pursuing prudent monetary and fiscal policies, and implementing structural reforms in the country's budgetary, banking, and power engineering sectors.
Additional Information:
The Eurasian Fund for Stabilization and Development (EFSD) in the amount of US$ 8.513 billion was established on June 9, 2009, by the governments of the same six countries. The objectives of the EFSD are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration processes in the region. The EFSD member states authorized the EDB to act as the Fund Manager, and signed a Fund Management Agreement with the Bank.
The Council of the Fund represents the interests of Fund member states in all mobilization, placement (investment) and utilization of Fund resources, and in all other matters related to Fund activities. The Council of the Fund currently includes the following members:
· Anton Germanovich Siluanov – Chairman of the Council of the Fund, Minister of Finance of the Russian Federation
· Bakhyt Turlykhanovich Sultanov – Minister of Finance of the Republic of Kazakhstan
· Adylbek Aleshovich Kasymaliev – Minister of Finance of the Kyrgyz Republic
· Abdusalom Karim Qurboniyon – Minister of Finance of the Republic of Tajikistan
· Vardan Saribekovich Aramyan – Minister of Finance of the Republic of Armenia
· Vladimir Viktorovich Amarin – Minister of Finance of the Republic of Belarus
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 to promote development of market economies of its member states, and secure their sustainable economic growth and expansion of their mutual trade and economic ties. The charter capital of the EDB is US$ 7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
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