IMF to disburse US$ 21 million for Tajikistan

DUSHANBE, May 13 (Itar-Tass) -- 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 and
decided to disburse an additional amount of US$ 20.9 million, IMF resident
representative in Tajikistan Ari Aisen told a press conference on Thursday.
The three-year US$ 167.1 million ECF arrangement with Tajikistan was
originally approved in 2009.
However the IMF warned Tajik authorities against growing budget
deficit and advised to keep it close to one percent of the GDP (66.6
million dollars). It also said the national banking system remains weak.
"Despite improvement in financial sector indicators, banks remain
vulnerable to shocks," the IMF said.
As for inflation, Aisen said the IMF hopes Tajikistan will keep it at
ten percent by the end of the year. However he said that will depend on
global fuel prices and the level they will stabilize at.
He praised the National Bank of Tajikistan which he said had so far
prudently balanced between inflation and the world prices for food and
fuel.
"Helped by recovery in remittances and a strong policy response,
Tajikistan is emerging from the global crisis, with real GDP growth rising
to 6.5 percent in 2010, up from 3.9 percent in 2009," the IMF said.
"The authorities have made progress in enhancing the governance of the
central bank, and should continue to press forward with their reform
strategy. Progress has also been made towards increasing transparency of
state enterprises. A review of the tax regime is expected to contribute to
improving the business environment. The Fund believes that the policy
package put in place by the authorities is appropriate to support
recovery," it said.