The Government has decided to withdraw deposits of the federally funded institutions from the distressed commercial banks. The funds will be kept in a single account of the Ministry of Finance (MoF) Central Treasury and they will be restricted to be used during a year.
The government regulation on the issuance of securities for capitalization of banks, in particular, notes that this measure is taken for the purpose of avoiding currency pressure and maintaining a low and stable rate of inflation,
“The matter concerns liquid assets of federally funded institutions that are kept in temporary deposit accounts of the distressed commercial banks. The amount of such funds kept in two banks alone exceeds 1.6 billion somoni. These funds are planned to be withdrawn from the banks and they will be kept in the Central Treasury single account,” a source at a MoF told Asia-Plus in an interview.
Recall, Tajikistan’s lower house (Majlisi Namoyandagon) of parliament on December 21 seconded the government’s decision to issue debt securities for capitalization of four distressed commercial banks.
The securities, guaranteed by the National Bank of Tajikistan (NBT), are expected to be issued in the near future.
The government will provide 3.85 billion somoni in securities for realization to four commercial banks of the country – Agroinvestbonk, Tojik Sodirot Bonk (TSB), Tajprombank (Tajik Joint-Stock Commercial Industrial Bank for Reconstruction and Development), and Fononbank
TSB will receive debt securities for a total amount of 2.25 billion somoni, Agroinvestbonk – 1.7 billion somoni, Tajprombank – 450 million somoni, and Fononbank – 80 million somoni.
The debt securities are given to the banks on the security of their movables and real estate and supervisory boards will be appointed for the mentioned commercial banks.
