DUSHANBE, February 17, 2010, Asia-Plus — The Asian Development Bank (ADB) will soon complete the $40 million Crisis Recovery Support Program Grant to help Tajikistan sustain critical social spending programs that were imperiled by the global economic crisis.
Mr. Makoto Ojiro ADB”s Country Director for Tajikistan, said at a briefing today that ADB will evaluate the implementation of the program at a later date. “But based on the information we receive from the Ministry of Finance on a monthly basis, and our regular reviews, the funds were utilized as agreed,” Mr. Ojiro noted.
This program is being implemented by the Ministry of Finance and the Ministry of Labor and Social Protection and is expected to be fully used by next month.
During the briefing it was noted that Tajikistan’s economy, which relies heavily on overseas remittances, export commodities, agriculture, and foreign support, has been among the worst hit in the region by the crisis. Tajikistan has seen a huge influx of returning workers who have lost their jobs in the Russian Federation and Kazakhstan, resulting in a sharp slide in remittance income, domestic spending and government revenue. Tajikistan”s real GDP growth for 2009 is estimated at 3%, down from 8% in 2008.
According to ADB’s Country Director, ADB’s funding support – approved by ADB”s Board on 6 July 2009 – enabled the government to deal with negative shocks to budget revenue and maintain core spending programs for critical social needs such as welfare payments and social services for vulnerable groups. It also allowed the government to push through with public investments designed to preserve and create new jobs for economic recovery. The fund complemented assistance from other multilateral agencies and bilateral sources, including the International Monetary Fund, World Bank and European Union, and was aligned with the crisis mitigation program of the country.
This year, the Bank’s support will be aimed at enhancement of energy sector and investment climate and 74 million U.S. dollars will be extended to support development of energy sector and improvement of investment climate in Tajikistan, Mr. Ojiro said.
Tajikistan joined ADB in 1998, and to date has received total assistance of about $560 million in concessional loans, grants and technical assistance from this institution.
