The National Bank of Tajikistan (NBT) and the World Bank have agreed to expand cooperation in order to improve Tajik banks’ conditions, according to the NBT press center.
This issues was reportedly discussed at a meeting of the NBT head Jamshed Nourmahmadzoda with the World Bank delegation that took here on December 5.
The NBT press center says Nourmahmadzoda briefed the World Bank representatives on the country’s macroeconomic indicators and the current situation in Tajikistan’s banking system.
The two sides reportedly exchanged views on priorities of development of Tajikistan’s financial sector and NBT’s strategy for improving local banks’ operating efficiency.
The current state of Tajikistan’s financial sector was also discussed at a meeting of the NBT senior representatives with Mr. Neil McKain, Director for Central Asia, European Bank for Reconstruction and Development (EBRD) that took place in Dushanbe at the end of the last week.
The two sides reportedly agreed to continue cooperation to seek solutions to the problems facing Tajikistan’s financial sector.
International financial institutions (IFIs) are expected to put together a comprehensive program to support rehabilitation of banking sector in Tajikistan.
Recall, Mr. Neil McKain announced this here on October 14 at a meeting of Tajik Prime Minister Qohir Rasoulzoda with representatives of Tajik business community and investors.
Mr. McKain noted that EBRD was aware of problems facing Tajik entrepreneurs, and one of the most important issues was access to finance.
According to him, the EBRD is currently considering the issue of providing a US$100 million loan to support the Tajik banking sector reform and restructuring. If the loan approved by the EBRD’s Board of Directors, it would be conditional on an IMF program and a World Bank Development Policy Operation being in place, including a roadmap for banking sector reforms.
EBRD representative expressed hope that with support from the National Bank of Tajikistan and the Ministry of Finance of Tajikistan the program would be implemented and “Tajik entrepreneurs and population will get decent banks.”
McKain underlined the necessity of providing financial transparency.
He also pointed out a heavy tax burden lying on Tajik entrepreneurs. He called on Tajik tax authorities to take into consideration the real situation of entrepreneurs while planning tax levies.
Experts note that Tajikistan's banking sector has shown substantial weaknesses. Tajikistan’s banks have been hit hard by the country’s economic problems, much of them reportedly linked to declining exports and remittances with Russia, which have left many of the country’s businesses and individuals unable to repay their loans to banks and microfinance institutions.
