Tajikistan needs assistance of the International Monetary Fund (IMF) for achievement of macroeconomic and financial stability. Negotiations on providing the next loan to Tajikistan within the frame work of a new IMF program are under way.
Representatives of the National Bank of Tajikistan (NBT) note that the first negotiations between an official delegation of Tajikistan and the International Monetary Fund within the framework of Extended Credit Facility program were conducted in October 2015.
“Approval of a new program with the IMF is a long-term process practically in all countries because all conditions and preliminary measures of the program should be coordinated in view of possible risks and factors that prevent a quick achievement of consensus,” NBT specialists say.
According to them, Tajikistan to date has achieved substantial progress “in implementing the preliminary measures of policy offered by the IMF.”
“The new IMF program is aimed at supporting Tajikistan in carrying out its economic strategy, achieving macroeconomic and financial stability as well as sustainability along with economic growth and alleviation of poverty,” they said, noting that the new IMF program will also be aimed at supporting payment balance and sustainability of the country’s international reserves.
The previous three-year Extended Credit Facility program ended in Tajikistan in July 2012.
The Extended Credit Facility (ECF) provides financial assistance to countries with protracted balance of payments problems. The ECF was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of low-income countries (LICs), including in times of crisis. The ECF is the Fund’s main tool for providing medium-term support to LICs.
The ECF supports countries’ economic programs aimed at moving toward a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth.
The ECF may also help catalyze additional foreign aid.
In autumn 2012, the Tajik authorities have applied to the IMF for a new three-year arrangement under the extended credit facility.
The IMF representatives that time reportedly raised hopes of coordinating the next three-year program. However, the negotiations on this subject are still continuing and now specific agreements have been reached so far.
Within the framework of the new program Tajikistan intended to attract a $500 million preferential loan from the IMF for supporting the country's economy.
