The Government of Tajikistan has initiated the formation of the reserve fund in the national budget for extraordinary expenses.

The so-called “safety cushion” will be created due to resources of state-owned enterprises (SOE) with an allowance for potential risk from them.    

The strategy of managing fiscal risks from state-owned enterprises designed for the period until 2020, in particular, notes that the reserve fund for extraordinary expenses will be formed for the purpose of meeting SOEs requirements in financing and providing enough reserves for budgetary expenses.  

The reserve fund’s means are expected to be used in the case of chronic non-fulfillment by SOEs of their debt repayment obligations.   

The Ministry of Finance will prepare the full list of financial assets and financial obligations related to sub-loans (foreign lender-government-SOE) as well as agreements with SOEs under government guarantee, and thereby, enterprises posing potential risk to the state will be determined and the volume of means they should transfer to the reserve fund will be calculated.