Republic of Tajikistan and the IMF
Press Release : IMF Approves Three Year, US$87 Million Poverty Reduction and Growth Facility Arrangement for the Republic of Tajikistan
Country's Policy Intentions Documents
Free Email Notification
Mr. Horst Köhler
Dear Mr. Köhler:
1. This letter supplements my letter, the Memorandum of Economic and Financial Policies (MEFP), and Technical Memorandum of Understanding (TMU), dated November 13, 2002 that was sent to you in support of our request for a new three-year PRGF arrangement from the Fund.
2. We are scheduled to sign a debt restructuring agreement with Russia on December 10, 2002. As part of that agreement, we have agreed that the amount of the credit that the National Bank of Tajikistan (NBT) has with the Central Bank of Russia is US$49.8 million. This credit is in recognition of the Russian rubles that were returned by the NBT to Russia several years ago. As part of our debt restructuring agreement with Russia, we have agreed to allocate US$23 million of the credit balance to finance interest arrears as of end-2001 and the remaining US$27 million for interest payments due during 2002-2006. The use of the NBT's credit balances will, in turn, give rise to claims on the government by the NBT. Finally, the terms of the debt restructuring will result in a somewhat lower pace of reserve accumulation than had been envisaged earlier. To reflect these changes it is necessary to adjust the quantitative performance criteria (specified in paragraph 47 and Annex I of the MEFP, and Tables 3, 4, and 5 of the TMU) on net international reserves, net domestic assets and net credit of the banking system to general government. The adjusted performance criteria are provided in Annex I to this letter.
3. Further, we would like to clarify that the performance criterion on short term external debt applies to the contracting or guaranteeing of new non-concessional short term external debt.
Very truly yours,
President of the Republic of Tajikistan