Tajikistan to borrow funds to finance priority economic sectors

DUSHANBE (TCA) — Tajikistan plans to borrow more than US $670 million from international financial organizations during three years (2016-2018), Avesta news agency reported on March 7 with reference to the country’s Finance Ministry.  

The money will be attracted within the Program of Tajikistan’s Foreign Borrowings for the period 2016-2018.

The money will be used to develop priority sectors of the national economy, including transport and communications, agriculture, energy, and healthcare.  

The borrowed funds will be used to implement 48 projects, some of which are currently being implemented.

The Finance Ministry said the money will be borrowed from international financial institutions and funds. Loans will be taken under favorable terms with repayment periods of 20-40 years and annual interest rates of 0.15-2 percent.

Moreover, 35 percent of the total borrowings will be taken on a grant basis.    

As of the beginning of this year, Tajikistan’s foreign debt amounted to $2.182 billion.

The largest creditors of Tajikistan are China’s Eximbank ($942 million), the World Bank ($312 million), the Asian Development Bank ($262 million), and the Islamic Development Bank ($110 million).

In accordance with Tajikistan’s State Debt Management Strategy for the period 2015-2017, the country’s foreign debt should make up 18.6 percent of the country’s Gross Domestic Product (GDP) by 2017.

In line with the established limit, Tajikistan’s foreign debt may not exceed 40 percent of GDP.

Sergey Kwan