The Eurasian Development Bank (EDB), acting as the Resources Manager of the Eurasian Fund for Stabilization and Development (EFSD), has transferred a US $50 million EFSD financial loan to Tajikistan.
According to the EDB, the funds have been provided for up to twenty years with a ten-year grace period at a fixed annual interest rate of 1.0 percent. In the first year of extension of the loan, the annual interest rate will be 0.25 percent.
The loan will be used to support Tajikistan’s budget amid the negative effects of the COVID-19 pandemic.
In addition to measures aimed at supporting the healthcare system and the population, the Tajik Government and National Bank’s program to counter the impact of COVID-19 on the economy and the financial and social sectors, as outlined in the nation’s application for the financial loan, provides for the implementation of prudent macroeconomic policies aimed at stimulating economic growth in conditions of limitation of price increase at the level of not more than the target indicator and ensuring stability of the financial sector.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
The Eurasian Fund for Stabilization and Development (EFSD) amounting to US$8.513 billion was formed on 9 June 2009 by the governments of the same six countries. The objectives of the EFSD are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration in the region. The EFSD member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the EFSD Resources Manager.
