DUSHANBE, October 13, 2009, Asia-Plus — Last year, the government gave a 140 million somoni credit to cotton farms through six banks and only 56 percent of that has been repaid by October 12, while the loans are currently due by November 1.
According to the Ministry of Finance (MoF), only two banks – Tojik Sodirot Bonk and Bonki Rushdi Tojikiston (Tajikistan Development Bank) – have paid off government credits given to cotton farmers through them. Both banks received a 5 million somoni credit each.
Tajprombank, which also received a 5 million credit from the government last year, has repaid only 42 percent (2.1166 million somoni) of that to this date.
A 40 million somoni government credit was provided to cotton farmers via Tajikistan’s savings bank, Amonatbonk. The bank still repaid 71 percent (28.4977 million somoni) of the credit.
Last year, the government also gave a 50 million somoni credit to cotton-growing farms via open joint-stock company (OJSK) Agroinvestbonk and it has repaid only 45 percent (22.71 million somoni) of that so far.
OJSC Orienbonk last year also received a 50 million somoni government credit for financing the cotton-harvesting campaign. The bank has repaid only 43 percent (15 million somoni) of the credit to this date.
The source at a MoF said that the banks that have not yet paid off their debts received notifications that the term of repayment of loans expires on November 1.
We will recall that the management of Agroinvestbonk intends to apply to the government asking to again postpone last year’s credit repayments. Mahmadali Ibrohimov, the head of Agroinvestbonk’s aggregate data department, said, “We ask the government to postpone repayment of last year’s government credit until July 1, 2010 as well as to freeze the interest on loans for banks.” According to him, they applied to the National Bank of Tajikistan and Association of Banks of Tajikistan today, asking to support this proposal. “They have promised to consider this proposal,” Ibrohimov said.
As it had been reported earlier, Agroinvestbonk appealed to the government in March this year, asking to postpone debt repayments for cotton farmers until the end of the year. The farmers” loans received last year were supposed to be paid off by April 1. 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 had hurt many Tajik farmers.
The government agreed to extend the loan repayment period until November 1, 2009.
In the meantime, the MoF source says that no one bank has applied to the ministry with solicitation to consider the issue of extension of the credit repayment period.
