The Council of the Eurasian Fund for Stabilization and Development (EFSD), an entity managed by the Eurasian Development Bank (EDB), has extended the period of availability for the financial credit to Tajikistan from November 15, 2017, to March 1, 2018.
According to the EDB press center, the resolution reflects positive assessment by the EFSD Council of the measures taken by Tajikistani authorities to minimize risks associated with resurgence of exchange rate multiplicity. In particular, they have adjusted the official exchange rate calculation formula to proportionately represent exchange operations in the intra-bank and inter-bank segments of the forex (FX) market, removed administrative restrictions on exchange rate setting by commercial banks, and reached a working arrangement on further improvement of the official exchange rate application mechanism.
The decision regarding expediency of continued support for the Reform Program developed by the Government and the National Bank of Tajikistan with the EFSD financial credit will be made on the basis of Resources Manager report on compliance with EFSD Council recommendations, including legislative consolidation of working arrangements designed to minimize risks associated with resurgence of exchange rate multiplicity, and adoption of measures, as agreed with the Resources Manager, to settle overdue debts owed to the Resources Manager by a legal entity where the Republic of Tajikistan is a shareholder.
Out of a total of US$ 40 million slated for the Reform Program support, one US$ 20 million tranche has been disbursed to date. The Reform Program supported with the EFSD financial credit is focused on steps intended to improve economic sustainability of Tajikistan to external shocks by increasing exchange rate flexibility, pursuing prudent monetary and fiscal policies, and implementing structural reforms in the country's budgetary, banking, and power engineering sectors.
Established on June 9, 2009, the Eurasian Fund for Stabilization and Development (the former EURASEC Anti-crisis Fund) in the amount of US$8.513 billion is an international financial institution established by Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan with the goals to assist its member nations in overcoming the consequences of global financial crisis, to ensure their long-run economic stability and to foster economic integration of EFSD member-countries.
The Fund assists member states with the following instruments: financial credits, available to governments only; investment loans, provided either to EFSD member states or to companies implementing interstate and national investment projects; and grants to finance government programs in social sector.
The EFSD member nations authorized the EDB to act as the Fund Manager, and signed a Fund Management Agreement with the Bank.
The Council of the Fund represents the interests of Fund member states in all mobilization, placement (investment) and utilization of Fund resources, and in all other matters related to Fund activities.
