DUSHANBE, December 22, Asia-Plus — Tajikistan has joined the Eurasian Development Bank (EDB).
Speaking in an interview with Asia-Plus, Chairman of the National Bank of Tajikistan (NBT) Sharifkhon Rahimzoda said that the EDB Board on December 11 considered applications by Tajikistan, Armenia and Belarus and approved the admission of them to the Bank. At present the sides are considering a number of basic documents that regulate the EDB’s presence in the territory of the country and terms of its cooperation with Tajikistan, Tajik central bank head said.
Mr. Rahimzoda noted that flexible position of the Bank on financial terms for admission of new members had given Tajikistan an opportunity to join the EDB through purchasing the minimum numbers of shares “that will not create any financial difficulties for the country.”
According to him, Tajikistan’s admission to the Bank will give a new impulse to further development of integration processes within the area of the Eurasian Economic Community (EAEC).
“This step will create favorable conditions for implementation of important national projects in Tajikistan,” Rahimzoda said. “Thus, to increase the volumes of processing of cotton into manufactured goods inside the country we are currently considering the issue of attracting loan resources of the EDB in an amount of 22 million dollars for purchase of equipment for the spinning mill under construction in the country,” the NBT head said.
In the meantime, press release issued by the EDB said that in accordance with its foundation documents, the EDB is open to interested countries and international organizations, which can become members after joining the Agreement Establishing the Eurasian Development Bank and paying up shares in the Bank being purchased by them.
As a rule, the EDB focuses on investment projects in its member countries, and therefore the joining of new members is a matter of practical importance. Participation in the EDB charter capital enables new members to launch various infrastructure projects in their territory and participate in global EDB investment initiatives in water power, production, and extractive industries.
In accordance with the admission procedure, the Board approved the increasing of the charter capital of the EDB by additional issuance of shares, which will be allocated to new members pro rata their contributions.
At present, the EDB’s charter capital is fully paid in by its founders, Russian and Kazakhstan, and totals $1.5 billion. As a result of the additional issuance, it will be increased by $15.6 million to be contributed by Tajikistan, Belarus and Armenia.
The EDB is an international financial institution founded in order to foster economic growth and integration processes in the Eurasian region. It was founded by intergovernmental agreement that was signed in January 2006 by the Presidents of the Russian Federation and the Republic of Kazakhstan. The initiative for establishing the Bank came from the two Presidents. The Bank’s charter capital is US$1.5 billion.
The Bank has formed a project portfolio for a total of $1 084 million, while also increasing efforts to expand its loan portfolio and product lines. International credit rating agencies have given the Bank ratings equivalent to the sovereign Russian rating or higher.
