DUSHANBE, July 26, 2010, Asia-Plus — The Eurasian Economic Community (EAEC) Anti-crisis Fund will provide a 70 million U.S. dollar preferential loan to Tajikistan.
A loan agreement was signed by Tajik Finance Minister Safarali Najmiddinov and Managing Director of the EAEC Anti-crisis Fund (ACF) Sergey Shatalov here on July 24.
The loan carrying annual interest at 1 percent is repayable over 20 years with a five-year grace period.
Mr. Shatalov noted that the loan is the first of a series of ACF’s financial credits to Tajikistan, planned for the coming three years.
Mr. Najmiddinov, for his part, said that the Government of Tajikistan intended to use the loan to support the country’s national budget for 2010 in order to ensure financing of social sectors (education, health, and social protection) at the planned level. “Besides, the loan will also go to supporting the public management reforms and state finances aimed at raising sustainability of the budgetary system and efficiency of use of national resources,” the minister said.
Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan agreed to establish the Anti-crisis Fund of 8.513 billion dollars in order to mitigate effects of the global financial and economic crisis. The foundation documents of the ACF, including a management agreement with the Eurasian Development Bank (EDB), were signed on June 9, 2009.
The ACF is dedicated to assist its member nations through providing loans to finance government support and international investment projects. The ACF member nations entrusted the EDB with managing the Fund’s resources.
Eurasian Development Bank (EDB) is an international financial organization founded by Russia and Kazakhstan in 2006. The members of the Bank are Russia, Kazakhstan, Armenia, Tajikistan and Belarus (2010). Other states or international organizations can become members by joining the Agreement Establishing the EDB. The Bank has authorized capital in exceeds US$1.5 billion, which was formed of contributions by its member states: Russia (US$1billion), Kazakhstan (US$500 million), Armenia (US$100,000), Tajikistan (US$500,000) and Belarus (US$15 million). The authorized capital may be increased by resolution of the Bank’s Council. The Bank has the status of an international organization, and is subject to international law.
