Central and West Asia
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline|
|01A - Short-term lending info_outline|
|01B - Support policies for short-term lending info_outline||
No amount/estimate: 8 April 2020, The National Bank of Tajikistan (NBT) lowered the reserve requirement for local currency and foreign exchange deposits to boost liquidity in the system of up to 2 percentage points, from 3% to 1%, and 4 percentage points, from 9% to 5%, respectively, by 31 December 2020.
|01C - Forex operations info_outline||
No amount/estimate: (i) 7 April 2020, The NBT, in order to reduce exchange rate pressures, exposure to existing currency risks and ensure compliance with the 2% difference between the official rate and the selling rate of the cash US dollar, as well as prevent the difference in the unofficial market, carries out a one-time correction of the official exchange rate of the US dollar at 5%; (ii) 4 November 2020, The NBT, in order to ensure compliance with the exchange rate difference of up to 2% between the official exchange rate and the selling rate of the US dollar and eliminate the gap in the non-bank market, adjustment, set the official exchange rate for the US dollar at TJS11.30.
|02 - Credit creation info_outline|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline|
|02B1 - Interest rate adjustments||
No amount/estimate: (i) 10 February 2020, The NBT has lowered the refinancing rate from 14.75% to 12.25% per annum (2.5 percentage points); (ii) 1 May 2020, The NBT cut the policy rate by 100 basis points to 11.75% to ease monetary conditions; 27 July 2020, the rate was reduced by another 100 basis points to 10.75%; On 29 October 2020, the policy rate was maintained at 10.75%; (iii) Interest rate on bank deposits have been lowered from 12% to 6% from 1 July to 31 December 2020.
|02B2 - Other policies to support long-term lending||
No amount/estimate: (i) The NBT has relaxed enforcement of prudential requirements to ease banking pressures and maintain credit: (a) In April 2020, the NBT recommended the banks to review loan terms to support borrowers facing temporary difficulties; (b) It also recommended banks to waive penalties for businesses and individuals that face hardships in repaying their loan obligations between May and October 2020; (c) To accommodate these the NBT temporarily (until September 2020) waived supervisory sanctions against those banks that are providing adequate loan loss provisions and as a result fail to meet capital adequacy ratio and liquidity ratio; (d) Despite a temporary waiver of penalties, credit institutions are required to ensure that established prudential requirements are met; (ii) To reduce the impetus for dollarization, the income tax rate for interest income on domestic currency deposits was lowered till end-December 2020 by 5%; (iii) June 2020, The NBT has recommended that credit institutions not pay dividends or bonuses to shareholders, but keep these profits to boost capital.
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline|
|03A - Long-term lending info_outline||
No amount/estimate: June 2020, Government plans to disburse preferential loans to food and medical supply producing companies through the Fund for State Support to Entrepreneurship.
|03B - Forbearance||
No amount/estimate: June 2020, The NBT recommended the banks to consider restructuring (i.e., extending maturity) loans that face temporary hardship.
|04 - Equity support info_outline|
|05 - Health and income support||TJS40,800,000||USD4,124,302|
|05A - Health support||TJS29,800,000||USD3,012,358||
(i) 2 May 2020, President Emomali Rahmon has allocated TJS12.4 million from the Presidential Reserve to supplement the salaries of health and social protection workers for 3 months, who are directly involved in the diagnosis and treatment of COVID-19 infection in medical and quarantined medical institutions and TJS11 million has been allocated to provide hospitals with food products; (ii) No amount/estimate: 22 May 2020, The Ministry of Health Care and Social Protection was instructed to adjust operation of hospitals, outpatient facilities, healthcare centers, medical facilities, and to supply them with medicines, and modern equipment. The virology laboratory will be launched in Sughd region of Tajikistan in the next few days, where COVID-19 tests will be made; August 2020: (iii) To fight against the coronavirus pandemic, a special account of the Ministry of Health and Social Protection of the Population had been opened, and to-date, more than TJS4 million has been spent from that account for the purchase of medical equipment and medications; (iv) Further, TJS13.4 million worth of medicines and medical equipment has been purchased at the expense of the Health Ministry's budget; (v) The government is providing free medical care to citizens placed under medical care and COVID-19 patients, as well as sick leave and compensation benefits;
|05B - Income support||TJS11,000,000||USD1,111,944|
|05B1 - Tax and contribution deferrals and policy changes||
No amount/estimate, June 2020: (i) Tariff increases on electricity, water, and communal services have been postponed until end of 2020.
|05B2 - Tax and contribution rates reduction||
No amount/estimate, June 2020: (i) The Government is providing VAT exemptions on essential imports; (ii) Government is providing time-bound tax holidays to targeted industries and small businesses until 1 September 2020.
|05B3 - Subsidies to individuals and households||TJS11,000,000||USD1,111,944||
(i) No amount/estimate: 19 May 2020, The President sent an assistance package to the Sughd Province. The package consists of 900 tons of food to provide socioeconomic support for doctors and those infected with COVID-19; No amount/estimate, June 2020: (ii) The Government is providing lumpsum assistance equivalent to the minimum wage to vulnerable households and other socially disadvantaged groups. Health workers are also expected to receive supplemental pay; (iii) Anti-COVID measures also include subsidizing food for the population; (vi) No amount/estimate: 17 July 2020, The President signed a government decree providing one-time payment to vulnerable groups in the amount of a month's minimum salary.
|05B4 - Subsidies to businesses||
(i) Government is providing grain, seed and fuel to farms to boost food security, and relief to targeted industries and small businesses until 1 September 2020; (ii) Anti-COVID measures also include financial support to SMEs.
|05B5 - Indirect income support|
|05B6 - No breakdown (income support)|
|05C - No breakdown (health and income support)|
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending and reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||TJS6,191,676,646||USD625,890,741|
|08A - Swaps info_outline|
|08B - International loans/grants||TJS6,191,676,646||USD625,890,741|
|08B1 - Asian Development Bank||TJS546,960,962||USD55,290,000||
(i) 13 March 2020, USD0.1 million grant for Maternal and Child Health Integrated Care Project under ADF; (ii) April 2020, USD1.02 million - TA9950-REG: Regional Support to Address the Outbreak of Coronavirus Disease 2019 and Potential Outbreaks of Other Communicable Diseases. As of 30 January 2021, this has now been increased to USD1.2 million; (iii) 27 May 2020, USD0.19 million (USD0.09 million (COL); USD0.09 million (ADF)) Strengthening Technical and Vocational Education and Training Project; (iv) 3 June 2020, USD0.07 million TASF - REG: Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (additional financing); (v) 17 June 2020, USD0.25 million TASF- Preparing the Financial Sector and Fiscal Management Improvement Program; (vi) 18 June 2020, USD50 million ADF grant for COVID-19 Active Response and Expenditure Support Program; (vii) 13 July 2020, USD0.38 million TASF - Addressing Health Threats in the Central, West and East Asia Region; (viii) 16 July 2020, USD0.30 million TASF - Strengthening the Investment Climate (Additional Financing); (ix) 24 July 2020, USD0.21 million (TASF) Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3); (x) 5 August 2020, USD2.5 million COVID-19 Emergency Response under the Asia Pacific Disaster Response Fund; (xi) 18 November 2020, USD0.05 million (TASF) Supporting Startup Ecosystem in the Central Asia Regional Economic Cooperation Region to Mitigate Impact of COVID-19 and Support Economic Revival; (xii) 26 November 2020, USD0.04 million (TASF) Addressing Health Threats in the Central, West and East Asia Region (Additional Financing).
|08B2 - Other||TJS5,644,715,684||USD570,600,741||
(i) 2 April 2020, The World Bank’s Board of Executive Directors approved today USD11.3 million in grant financing from the International Development Association for the Tajikistan Emergency COVID-19 Project, which will support the country’s efforts to prepare for and respond effectively to the health and social risks associated with the global COVID-19 (Coronavirus) pandemic; (ii) 14 April 2020 - 13 October 2020: IMF Catastrophe Containment and Relief Trust-Grant Assistance For Debt Service Relief, SDR7.83 million (SDR0.729/USD); (iii) 6 May 2020, The IMF Executive Board approved a disbursement of USD189.5 million under the Rapid Credit Facility for budget support to help Tajikistan meet urgent balance of payments and fiscal needs stemming from the COVID-19 pandemic; (iv) 19 May 2020, USD1 million UN COVID-19 Response & Recovery Fund from UNDP; May 2020: (v) USD9.4 million from ISDB - Emergency Support for Building COVID-19 pandemic preparedness and response capacity in the Republic of Tajikistan; (vi) Recently, Tajikistan was granted a debt relief of around USD50 million under the G20 Debt Service Suspension Initiative. These funds were also included to the anti-COVID envelop under the supplementary budget currently being discussed in the Parliament; (vii) As of 25 June 2020, US assistance totaled more than USD5 million as follows: (a) USD1.2 million to strengthen Tajikistan’s health system, procure urgent supplies that support infection-prevention and control, improve the capacity of Tajik laboratories, et al.; (b) March 2020, USD0.003 million for personal protective equipment; (c) April 2020, USD0.866 million to prepare the country’s laboratory systems for large-scale testing; (d) April 2020, USD0.171 million worth of food assistance; (e) May 2020, USD0.030 million to conduct outreach campaigns; (f) May 2020, US CDC pledged USD1.69 million to procure laboratory supplies and equipment for COVID-19 testing; (g) June 2020, USD2.6 million to improve care for patients; and (h) Assisted more than 600 Tajik migrants stranded at the Kazakh-Uzbek border to safely return home; (viii) 22 July 2020, The European Commission provides Tajikistan with EUR112 million (USD124 million) to strengthen health, education and social services and support the country in its coronavirus response; (ix) 28 July 2020, The Swiss Agency for Development and Cooperation (SDC), contributed USD1.1 million toward the UN World Food Programme (WFP) COVID-19 response in Tajikistan; (x) 30 July 2020, The World Bank approved the USD132 million grant-financed Fourth Phase of the Central Asia Regional Links Program (CARs-4), which aims to enhance Tajikistan’s regional transport connectivity and facilitate cross-border trade. The financing will come from the International Development Association (USD131 million) and the Program for Asia Connectivity and Trade Trust Fund (USD1 million); (xi) 2 October 2020, IMF Catastrophe Containment and Relief Trust (2nd Tranche) - grant assistance for debt service relief, USD7.36 million; (xii) 2 December 2020, USD6 million investment from the World Bank to strengthen the efficiency, accountability, and transparency of public expenditure, which was deemed especially important given the pandemic; (xiii) 17 December 2020, Russia allocates USD2 million for a new UNDP project “Accelerating Post COVID-19 Economic Recovery through Improved Livelihood, Employability, and Regional Cooperation in Ferghana Valley”, meant to support post-COVID economic recovery in Tajikistan; (ix) 11 February 2021, The World Bank’s Board of Executive Directors approved an additional USD8.63 million financing for the Tajikistan Emergency COVID-19 Project for the procurement and delivery of internationally approved COVID-19 vaccines. As of 22 February 2021, an additional USD12.57 million from the World Bank has also been approved to further strengthen Tajikistan’s heath care capacity and protect vulnerable population groups.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures||
(i) April 2020, The NBT hiked the policy rate by 50 basis points to 12.75% to contain inflationary pressures; (ii) June 2020, Credit institutions are exempt from paying fees for the settlement system and have been asked to avoid non-essential expenditures.
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)||
April 2020: (i) The authorities have instituted a high-level task force and taken a range of measures to contain the spread of the virus, including travel restrictions; (ii) On 6 June 2020, restrictions on public transport was removed and intercity travel remained open, international flights are not expected to resume until further notice; (iii) 21 December 2020, Flights between Tajikistan's Dushanbe and Uzbekistan's Tashkent will most likely resume closer to spring, a source in the Tajikistan's government said. As of 18 January 2021, flights between Tajikistan and Uzbekistan have resumed; (iv) 3 March 2021, Tajikistan resumes regular flights to Kazakhstan and Afghanistan.
|12B - Measures affecting business and workplace||
April 2020: (i) The authorities have instituted a high-level task force and taken a range of measures to contain the spread of the virus, including border closures, and suspending prayers at mosques; (ii) May 2020, All schools will remain closed until 10 May 2020; (iii) On 6 June 2020, the government presented a reopening plan which includes resuming operations of bazaars, cafes, beauty and hairdressing salons, and barber shops along other businesses starting on 15 June 2020. All businesses must adhere strict cautionary measures, including regular disinfection of premises and observance of social distancing; (iv) 18 August 2020, Schools reopened after 4 months with measures to prevent COVID-19.
|12C - Others||
(i) April 2020: The task force prepared for potential outbreak by arranging testing labs, medical equipment, supplies, and personnel across the country; (ii) 19 November 2020, The Prevention Commission of Tajikistan has prohibited the holding of all celebrations, including the organization of a New Year’s tree, cultural, festive and other public events on the occasion of the New Year 2021.