AKIPRESS.COM - The Council of the Eurasian Fund for Stabilization and Development (EFSD), an entity managed by the Eurasian Development Bank (EDB), has extended the period of availability for the financial credit to Tajikistan from November 15, 2017, to March 1, 2018, the EDB reported.
The resolution reflects positive assessment by the EFSD Council of the measures taken by Tajikistani authorities to minimize risks associated with resurgence of exchange rate multiplicity. In particular, they have adjusted the official exchange rate calculation formula to proportionately represent exchange operations in the intrabank and interbank segments of the FX market, removed administrative restrictions on exchange rate setting by commercial banks, and reached a working arrangement on further improvement of the official exchange rate application mechanism.
The decision regarding expediency of continued support for the Reform Program developed by the Government and National Bank of Tajikistan (the "Program") with the EFSD financial credit will be made on the basis of Resources Manager report on compliance with EFSD Council recommendations, including legislative consolidation of working arrangements designed to minimize risks associated with resurgence of exchange rate multiplicity, and adoption of measures, as agreed with the Resources Manager, to settle overdue debts owed to the Resources Manager by a legal entity where Tajikistan is a shareholder.
Out of a total of US$ 40 million slated for Program support, one US$ 20 million tranche has been disbursed to date. The Reform Program supported with the EFSD financial credit is focused on steps intended to improve economic sustainability of Tajikistan to external shocks by increasing exchange rate flexibility, pursuing prudent monetary and fiscal policies, and implementing structural reforms in the country's budgetary, banking, and power engineering sectors.