IMF Announces Staff-Level Agreement with Tajikistan on Sixth Review of the Extended Credit Facility

Press Release No. 12/124
April 5, 2012

An International Monetary Fund (IMF) mission led by Mr. Todd Schneider visited Dushanbe during February 16–29 to conduct discussions for the sixth and final review of the Extended Credit Facility (ECF) arrangement1. The mission reached a staff-level agreement with the Tajik authorities on measures needed for completion of the review. This agreement requires approval by the IMF’s Executive Board, which is expected to consider Tajikistan’s request for completion of the sixth review in April 2012. Upon approval, a final tranche of SDR 13 million (about US$20 million) would be made available to Tajikistan bringing total disbursements under the arrangement to SDR 104 million (about US$160 million).

At the conclusion of the visit, Mr. Schneider issued the following statement:

“Economic performance in 2011 was strong. Despite adverse climate conditions and negative shocks to food and fuel prices, real GDP growth was 7.4 percent, fueled by trade and services, agriculture, and construction. Inflation moderated to 9.3 percent in December, reflecting lower international food prices and tighter fiscal and monetary policies.

We project real GDP growth to be at least 6 percent in 2012, and inflation to average about 8 percent. Close coordination of monetary and fiscal policies will be needed, as well as structural reforms to bolster the stability of the financial system and create an attractive investment environment. In this context, the mission urged the government to refrain from directed lending, and recommended the National Bank of Tajikistan to take a proactive approach to financial supervision—requiring banks not in conformance with prudential criteria to take concrete steps to return to financial health. A streamlined tax code will be essential to improving the business environment, spurring private-sector led growth and employment, and generating revenues to cover higher social sector spending.”

“The mission welcomed the government’s continued commitment to transparency, including publication of Talco Management’s audited financial statements, and quarterly reports on the operations of the Roghun OJSC.”




1 The 3-year ECF arrangement with Tajikistan amounts to SDR 104.4 million (about $162 million) (see Press Releases No. 09/136, No. 10/351, and No. 11/341).



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