Dushanbe. June 18. “Asia-Plus” — The Council of the EurAsEC Anti-crisis Fund (ACF) has approved the first request for allocation of funds.
According to EurAsEC’s press service, ministers of ACF member states – Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Armenia – met on June 18 in St. Petersburg and agreed to allocate a $70mln loan to Tajikistan with 1% fixed rate for 20 years.
The decision of ACF Council has also been considered and approved by the Eurasian Development Bank (EADB) which manages the Fund’s resources. In its conclusion EADB said that Tajikistan’s request complies with ACF goals, funding directions, order and conditions of loans defined by the Fund’s Treaty.
The overall goal of the loan is to support planned budget funding of social sectors (education, health care, social protection).
EADB also said that with poor paying capacity of Tajikistan, reduction in tax proceeds and underfunding of a series of key spheres, including health care, education and social protection, this loan will provide significant support for post-crisis rehabilitation of the country’s economy.
Additionally, Managing Director of the EurAsEC Anti-crisis Fund recommended that this loan to Tajikistan should support budget expenditures for health care, education and social protection at a level not lower than actual expenditures of pre-crisis period and should support concrete reforms in such sectors as management of state funds and public service, specified by the Government in its anti-crisis program.
According to Igor Finogenov, Chairman of the EADB Board, “EADB also recommends ACF Council to plan its support to Tajikistan in mid-term perspective and equally distribute a limit of Tajikistan’s access to ACF’s resources for the next three years.”
According to mid-term forecasts, the need of Tajikistan in budget support, which is quite significant in 2010, will not only remain but may increase in the next few years.
Mr. Finogenov also said that “being managing body of ACF’s resources, EADB recommended to reserve 30-40% of Tajikistan’s limit for development of investment cooperation in the frameworks of EurAsEC since implementation of large investment projects is one of strategic priorities of ACF’s activity.”
ACF’s Council also entrusted EADB with conducting related procedures on adjusting and signing of loan agreement with Tajikistan in accordance with approved parameters and financial conditions.
