The Government of Tajikistan asks the Asian Development Bank (ADB) to revise the form of financial support for the country.
“All the aid that Tajikistan is currently receiving from the Asian Development Bank is provided in the form of grants,” ADB Director-General for Central and West Asia Yevgeniy Zhukov told Asia-Plus’s reporter in an interview in Incheon, Republic of Korea on May 5 on the margins of the ADB 56th Annual Meeting.
According to him, on the one hand, this is good, but on the other hand, this means that the amount of aid is limited.
“The Government of Tajikistan raises the question that this classification should be revised, and so that the country would have an opportunity to receive assistance not only in the form of grants, but also in the form of loans,” the ADB official noted.
He further noted that the ADB provides financial assistance on the basis of a joint analysis of sustainability of the country’s external debt made jointly with International Monetary Fund (IMF) and the World Bank (WB).
“If the ongoing trend of decreasing external debt in relation to the gross domestic product (GDP) continues, the form of providing financial assistance will be revised in the near future,” Zhukov concluded.
The ADB has provided financial assistance to Tajikistan only in the form of grants since 2018.
It is to be noted that the ADB stated in the 2020-2022 plan that Tajikistan was eligible for Asian Development Fund (ADF) grants only due to high risk of debt distress.
As of January 1, 2023, Tajikistan’s external debt has reportedly amounted to 3.2883 billion US dollars, which is equal to 28.5 percent of the country’s GDP.
The ADB country partnership strategy (CPS), 2021–2025 for Tajikistan notes that Tajikistan, a group A developing member country, is eligible only for ADF grants because of its high risk of debt distress. To use limited resources effectively, ADB select carefully the projects for this CPS period. The CPS views climate change, regional cooperation and integration, and gender equality as crosscutting issues; and calls for active knowledge management. The indicative ADF grant allocation for commitment for 2021–2024 is reportedly 460.73 million US dollars. Subject to the annual debt distress classification and achievement of agreed policy actions under the Sustainable Development Finance Policy, the final allocation will depend on the available resources and the outcome of the country performance assessments.
Established in 1966, the Asian Development Bank is owned by 68 members—49 from the region.
ADB has partnered with Tajikistan since 1998. Under the bank’s country partnership strategy, 2021-2025, ADB operations pursue three strategic priorities: supporting structural reforms to enhance resource allocation and mobilization, improving labor productivity through human capital development, and fostering better livelihoods through investment in a land-linked economy. To date, ADB has committed 155 public sector loans, grants, and technical assistance totaling US$2.4 billion to Tajikistan.
