DUSHANBE, July 13, 2009, Asia-Plus — The Asian Development Bank (ADB) has disbursed $40 million under the Crisis Recovery Support Program Grant that was approved by ADB”s Board on 6 July 2009 to help Tajikistan sustain critical social spending programs that have been imperiled by the global economic crisis, according the ADB Regional Mission in Tajikistan.
“The tranche was released immediately after the grant approval, which shows urgency and importance of the program for the country,” said Makoto Ojiro, ADB”s Country Director for Tajikistan.
The Tajik economy, which relies heavily on overseas remittances, agriculture, and foreign investment, 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 expected to be zero, down from 8% in 2008.
ADB’s funding support will allow the government to deal with negative shock to budget revenue and maintain core spending programs for critical social needs such as welfare payments and social services for vulnerable groups. It will also allow the government to push through with public investments designed to preserve and create new jobs for economic recovery. The fund complements assistance from other multilateral agencies and bilateral sources, including the International Monetary Fund, World Bank and European Union, and is aligned with the crisis mitigation program of the country.
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 the end of this year.
Tajikistan joined ADB in 1998, and to date has received total assistance of about $550 million in concessional loans, grants and technical assistance from this institution.
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.
