DUSHANBE, October 24, 2009, Asia-Plus — The issue of postponement of repayment of a government credit provided to banks last year for financing of cotton-harvesting campaign has not yet been considered, Minister of Finance Safarali Najmiddinov remarked at a news conference in Dushanbe on October 23.
According to him, debtor banks have not yet applied to the ministry on this subject. “But even if they apply, we will analyze their activities and if it appears that the next postponement is really needed, we will apply to the government on this subject,” Najmiddinov noted.
He added that if banks fail to repay debts until November 1 without a valid reason they will be fined in accordance with the signed loan agreements.
According to him, the government last year gave a 140 million somoni credit to cotton farmers through six banks and only 80 million somoni have been repaid so far.
“Only Tojik Sodirot Bonk (TSB) and Bonki Rushdi Tojikiston (Tajikistan Development Bank) have paid off their debts to this day and Tajprombank and Amonatbonk (Tajikistan’s savings bank) promise to repay their debts until November 1,” said the minister, “We are currently working with Agroinvestbonk and Orienbonk and hope that they will also meet the deadline.”
We will recall that in 2008, the government gave a 140 million somoni credit to cotton farmers through Amonatbonk (40 million somoni), Agroinvestbonk (50 million somoni), Orienbonk (35 million somoni), TSB (5 million somoni), TDB (5 million somoni), and Tajprombank (5 million somoni). The loans were supposed to be paid off by April 1, 2009.
In March this year, Agroinvestbonk appealed to the government, asking to postpone debt repayments for cotton farmers until the end of the year. Agroinvestbonk justified its request for postponement of debt repayments by saying that the fall in the international price of cotton and in demand for the product has hurt many Tajik farmers.
The government agreed to extend the debt repayment term until November 1, 2009, while banks now intend to ask the government to postpone debt repayments until July 1, 2010.
