DUSHANBE, May 19, 2009, Asia-Plus — During March-April this year, the Ministry of Finance (MoF) signed credit agreements with six banks, including Orienbonk, Amonatbonk (Tajik savings bank), Tojik Sodirot Bonk (TSB), Bonki Rushdi Tojikiston (Tajikistan Development Bank or TDB), Agroinvestbonk and Tajprombank (Commercial Industrial Bank of Reconstruction and Development), for a total amount of 165 million somoni.
103 million somoni have already been allocated to the banks in two tranches. Loans are provided to the banks at 10 percent annual interest and the bank should provide loans to farmers at the annual interest rate of not higher than 14 percent.
Speaking in an interview with Asia-Plus, the Deputy Finance Minister, Jamoliddin Nouraliyev, noted that Orienbonk had received 40 million somoni from the planned 50 million somoni, Amonatbonk – 14 million somoni (35 million somoni), TDB – 10 million somoni, TSB – 7 million somoni (10 million somoni), Agroinvestbonk – 25 million somoni (50 million somoni), and Tajprombank – 7 million somoni (10 million somoni).
The remainder is expected to be allocated to the banks in August-September, the deputy minister said. “Another 15 million somoni are kept as reserve for the banks,” Nouraliyev said, noting that local authorities would not interfere in the process of the provision of loans by the banks to farming units. He added, “Loans will be provided only to those farms that are able to repay loans, irrespective of agricultural crops they grow.”
We will recall that last year, the government gave a 140 million credit to farmers through the mentioned six banks and only 47 percent of that has been repaid by May 15. Farmers were supposed to repay their loans by April 1, 2009, but the fall in international price of cotton and in demand for the product caused by the global financial crisis has hurt many Tajik farmers. Taking all this into consideration, the government postponed debt repayments for farmers until January 1, 2010.
