Tajikistan’s government saving troubled banks

DUSHANBE (TCA) — The lower house of Tajikistan’s parliament on December 21 approved the Government’s plan to issue state-guaranteed securities (promissory notes) for capitalization of the country’s troubled banks, Avesta news agency reports.

Finance Minister Abdusalom Kurboniyon said the notes will be issued to solve financial problems of four troubled banks — Tajiksodirotbank, Agroinvestbank, Tajprombank, and Fononbank.  

In the minister’s words, the notes will be issued against the properties of the banks used as collateral. The banks will have to repay the notes in five years at an interest rate of two percent per annum.

The Chairman of Tajikistan’s National Bank, Jamshed Nurmakhmadzoda, said there is an action plan for each of the four troubled banks. A supervisory board will be created to monitor the entire process. The National Bank will have its representative in each of the four banks.

Minister Kurboniyon emphasized that it was practically impossible to save the troubled banks without the interference of the State.

“This decision is aimed at ensuring sustainable development of the banking system, preserving the population’s trust in the banks, and returning deposits,” the finance minister said.

In his words, the notes will be issued for a total amount of 3.850 billion somoni, including 2.250 billion somoni for Tajiksodirotbank, 1.070 billion somoni for Agroinvestbank, 450 million somoni for Tajprombank, and 80 million somoni for Fononbank.

The National Bank of Tajikistan will act as the guarantor of the notes’ repayment.

Sergey Kwan


Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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