The Government of Tajikistan has asked China to give relief on loan obligations in connection with effects of the novel coronavirus (COVID-19), according to the Ministry of Economic Development and Trade (MoEDT).
China remains Tajikistan’s largest creditor. As of July 1, 2020, Tajikistan owes 1.2 billion USD to the Export-Import Bank of China (China Eximbank), which is nearly 40 percent of a total Tajikistan’s external debt estimated at about 3.1 billion somoni.
Besides, Tajikistan has relatively large debts to the World Bank (338.5 million USD), the Asian Development Bank (287.3 million USD) and the Islamic Development Bank (131.9 million USD).
The issuance of a US$500 million Eurobond in September 2017 is also one of the primary drivers of the rise in Tajikistan’s external debt.
However, Tajik authorities proposes to increase the volume of China’s direct investments in the country’s economy.
According to data from the State Committee on Investment and State-owned Property Management (GosKomInvest), China invested more than 2.8 billion USD in Tajikistan’s economy in 207-2019. China primarily invested in construction, communications, energy and mining sectors.
GosKomInvest head Farrukh Hamraliyev told reporters in Dushanbe in late July that coronavirus has significantly affected Tajikistan’s economy. According to him, investment in the country’s economy has reduced by 30-50 percent this year.
Hamraliyev further added that the majority of investment projects were being implemented in Tajikistan due to China’s investments.
