Dushanbe. June 25. “Asia-Plus” — The World Bank’s Board of Directors has approved US$ 24,4 million program grant for Tajikistan aimed to support the Government of Tajikistan to mitigate the impact of the global economic crisis and continue implementation of mid-term reform program.
The World Bank Regional Director for Central Asia Mr Motu Konishi noted that these funds, which are being allocated in the frameworks of the budget support program, will let the Government of Tajikistan support provision of health care, education and social protection services.
“Tajikistan has been seriously affected by the global financial crisis mainly due to rapid reduction in money remittances which reduced actual income of the population. It is expected that in 2010 the condition of economy will be improved, but the condition of budget funds will remain difficult due to unforeseen deficit of state revenues. This will affect balance of payments, reserves, exchange rate and current transactions. There will be an increased need in social services for returning migrants and jobless citizens. The grant will help the Government of Tajikistan to provide principal social services and strengthen current reforms and poverty reduction programs through partial coverage of unforeseen funding deficit caused by the global economic crisis,” the source has said.
It stressed that the grant will let preserve investors’ confidence through implementation of policy aimed to support macroeconomic stability, stimulation of private investments and establishment of professional public service, which is very important in the conditions of growing and developing economy. In terms of stimulation of private investments, the grant will let the Government to reduce legal load on business, strengthen financial sector, improve motivation of growth and diversification of agriculture and modernize aviation services.
“New grant will lay the foundation for post-crisis rehabilitation and growth which are key elements of the recently approved Partnership Strategy between Tajikistan and the World Bank for the next three years. These efforts will let the country to rehabilitate after current recession and achieve high growth indexes which were so important for poverty reduction in the past decade,” WB Resident Representative in Tajikistan Ms Kiara Bronki has said.
