DUSHANBE, October 23, 2013, Asia-Plus — Germany is supporting enhancement of Tajikistan’s health sector through providing 31.5 million euros in no-strings aid, according to the Ministry of Economic Development and Trade (MoEDT) press center.
Tajikistan and Germany have reportedly signed a government-to-government agreement on providing no-strings aid for enhancement of Tajikistan’s health sector.
The document was inked by Sharif Rahimzoda, Minister of Economic Development and Trade of Tajikistan and Olga Geffle, representative of the German Development Bank (KfW) here on October 22.
Under this agreement, Germany reportedly provides 31.5 million euros for implementation of the second, third and fourth stages of the project, Mother-Child Health Care and Development Ambulance Service.
Earlier, the Government of Germany provided 10 million euros for implementation of the first stage of this project.
Established in 1948 as part of the Marshall Plan, the KfW is a German government-owned development bank, based in Frankfurt. It is owned by the Federal Republic of Germany (80%) and the States of Germany (20%). KfW banking group covers over 90% of its borrowing needs in the capital markets, mainly through bonds that are guaranteed by the federal government. This allows KfW to raise funds at advantageous conditions. Together with its exemption from corporate taxes due to its legal status as a public agency and unremunerated equity provided by its public shareholders, this allows KfW to provide loans for purposes prescribed by the KfW law at lower rates than commercial banks.
