DUSHANBE, July 7, 2009, Asia-Plus — The Government of Tajikistan and the Asian Development Bank (ADB) today signed a grant agreement for a $40 million crisis recovery support program to help Tajikistan sustain critical social spending programs that have been imperiled by the global economic crisis.
The agreement was inked by Safarali Najmiddinov, Minister of Finance, and Makoto Ojiro, ADB’s Country Director in Tajikistan.
Press release issued by the ADB Regional Mission in Tajikistan says that 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.
ADB’s funding support will allow the government to maintain core spending programs for critical social needs such as salaries and welfare payments for vulnerable groups, as well as food and medicines. It will also give the government financial leeway to push through with investments designed to preserve and create new jobs for returning migrant workers.
The fund complements emergency assistance from other multilateral agencies, including the International Monetary Fund, World Bank and European Union, and is aligned with the crisis mitigation program of the country.
“ADB’s assistance, in tandem with the initiatives of other development partners, will support essential public spending to protect the poor and the vulnerable,” said Makoto Ojiro, ADB”s Country Director for Tajikistan.
The Ministry of Finance will be the executing agency. The Ministry of Finance and the Ministry of Labor and Social Protection will be the main implementing agencies for this program, which is expected to be fully used by the end of this year.
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.
