DUSHANBE, May 13, 2011, Asia-Plus -- The Executive Board of the International Monetary Fund (IMF) has completed its fourth review of Tajikistan’s economic performance under a program supported by the Extended Credit Facility (ECF) arrangement that enables the Tajik authorities to draw additional US$20.9 million, bringing total disbursements under the arrangement to US$125.3 million, Mr. Ari Aisen, the IMF Resident Representative in Tajikistan, announced at a news conference in Dushanbe on May 11.

According to him, the three-year ECF arrangement (about US$167.1 million) with Tajikistan was originally approved by the IMF’s Executive Board on April 21, 2009.  He noted that financing under the ECF carried a zero interest rate, with a grace period of five years, and final maturity of ten years. 

Mr. Aisen noted that following the Executive Board discussion it was stated that recovery in remittances and a strong policy response have helped Tajikistan emerge from the global crisis.  In 2010, real gross domestic product (GDP) growth rose to 6.5 percent, up from 3.9 percent in 2009.  The external accounts have strengthened, but the improvement is expected to be temporary.  In this context, the Tajik authorities have requested the completion of the fourth review under the Extended Credit Facility.

Press release issued by the IMF on May 11 says that following the Executive Board discussion, Mr. Shinohara, Deputy Managing Director and Acting Chair, stated: “The Tajik authorities’ 2011 program aims to further reduce poverty and raise growth.  The program seeks to safeguard macroeconomic stability by containing the overall fiscal deficit and reserve money growth, while maintaining a flexible exchange rate regime.  The overall fiscal deficit target for 2011 (at 1 percent of GDP) is appropriate, given pressing social and infrastructure needs. However, over the medium term, a return to fiscal balance or, preferably, small surpluses (excluding the foreign-financed public investment program (PIP) will be necessary to preserve fiscal and debt sustainability.”