The spread of COVID-19, the drastic decline in external demand, and lockdown-related restrictions have an extensive negative impact on the economies, budgets, and solvency of EFSD member countries.
The Council of the Eurasian Fund for Stabilization and Development (EFSD) reportedly decided to provide a US $50 million financial credit to Tajikistan.
The funds will be used to implement the Tajik Government and National Bank’s program to counter the impacts of COVID-19 on the country’s economic, financial, and social sectors.
According to EFSD, the loan will be provided for up to 20 years, with a grace period of up to ten years, and an interest rate of 1 per cent per annum.
In addition, because of the active spread of the coronavirus, the health systems in the Fund’s member states have been facing an increased burden. To improve response to the outbreak of COVID-19, the Fund’s Council decided to conduct an extraordinary competitive selection of health projects to be funded by EFSD grants. The grants will be provided to the Fund’s member states having a gross national income of less than US $4,300 per capita (as of 2018).
The eligible countries to apply under this criterion are the Armenia, Kyrgyzstan, and Tajikistan.
Considering the scale of the emerging gaps in the countries’ budgets and balances of payments, EFSD funding is expected to help maintain financial stability and the ability of these countries to discharge critical obligations, especially social ones.
The Eurasian Fund for Stabilization and Development (EFSD; the Fund) is a regional financial arrangement to support the member economies. The fund was established with the aim to overcome negative crisis effects, ensure long-term sustainability, and promote integration of its member economies. The main borrower of the EFSD is Belarus, which has been extended two credits for fiscal support for a total of US $5 billion. Tajikistan, Kyrgyzstan, and Armenia also receive financial support in the form of investment loans and financial credits, as well as grants.
