Central and West Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 4.12
% of GDP (2019): 0.05%
% of Regional Total Package: 0.01%
Package Per Capita in USD: 0.45
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
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: April 8, 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 December 31, 2020.

01C - Forex operations info_outline

No amount/estimate: April 7, 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%.

02 - Credit creation info_outline
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline

No amount/estimate: (i) February 10, The NBT has lowered the refinancing rate from 14.75% to 12.25% per annum (2.5 percentage points); (ii) April, The NBT hiked the policy rate by 50 basis points to 12.75% to contain inflationary pressures; (iii) May 1, The NBT cut the policy rate by 100 basis points to 11.75% to ease monetary conditions; July 27, the rate was reduced by another 100 basis points to 10.75% [update]; (iv) Interest rate on bank deposits have been lowered from 12% to 6% from July 1 to December 31, 2020; (v) The NBT has relaxed enforcement of prudential requirements to ease banking pressures and maintain credit: (a) In April, 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) 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; (vi) 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%; (vii) June, 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, 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, The NBT recommended the banks to consider restructuring (i.e., extending maturity) loans that face temporary hardship.

04 - Equity support info_outline
05 - Government support to income/revenue TJS40,800,000 USD4,124,302
05A - Health TJS17,400,000 USD1,758,893

(i) No amount/estimate: May 22, 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: (ii) 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; (iii) Further, TJS13.4 million worth of medicines and medical equipment has been purchased at the expense of the Health Ministry's budget.

05B - Non-health TJS23,400,000 USD2,365,408

(i) May 2, 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: May 19, The President sent an assistance package to the Sughd Privince. The package consists of 900 tons of food to provide socioeconomic support for doctors and those infected with COVID-19; No amount/estimate, June: (iii) The Government is providing VAT exemptions on essential imports and lumpsum assistance equivalent to the minimum wage to vulnerable households and other socially disadvantaged groups. Health workers are also expected to receive supplemental pay; (iv) Tariff increases on electricity, water, and communal services have been postponed until end of 2020; (v) Government is providing free medical care to citizens placed under medical care and COVID-19 patients, as well as sick leave and compensation benefits; (vi) Government is providing grain, seed and fuel to farms to boost food security, and time-bound tax holidays and relief to targeted industries and small businesses until September 1, 2020; (vii) Anti-COVID measures also include financial support to SMEs and subsidizing food for the population; (vii) No amount/estimate: July 17, The President signed a government decree providing one-time payment to vulnerable groups in the amount of a month's minimum salary.

06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received TJS5,827,332,782 USD589,060,741
08A - Swaps info_outline
08B - International loans/grants TJS5,827,332,782 USD589,060,741
08B1 - Asian Development Bank TJS544,289,965 USD55,020,000

(i) March 13, USD0.1 million grant for Maternal and Child Health Integrated Care Project under ADF; (ii) April, USD1.02 million - TA9950-REG: Regional Support to Address the Outbreak of Coronavirus Disease 2019 and Potential Outbreaks of Other Communicable Diseases; (iii) May 27, USD0.19 million (USD0.09 million (COL); USD0.09 million (ADF)) Strengthening Technical and Vocational Education and Training Project; (iv) June 3, USD0.07 million TASF - REG: Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (additional financing); (v) June 17, USD0.25 million TASF- Preparing the Financial Sector and Fiscal Management Improvement Program; (vi) June 18, USD50 million ADF grant for COVID-19 Active Response and Expenditure Support Program; (vii) July 13, USD0.38 million TASF - Addressing Health Threats in the Central, West and East Asia Region; (viii) July 16, USD0.30 million TASF - Strengthening the Investment Climate (Additional Financing); (ix) July 24, USD0.21 million (TASF) Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3); (x) August 5, USD2.5 million COVID-19 Emergency Response under the Asia Pacific Disaster Response Fund.

08B2 - Other TJS5,283,042,818 USD534,040,741

(i) April 2, 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) April 14-Oct 13: IMF Catastrophe Containment and Relief Trust-Grant Assistance For Debt Service Relief, SDR7.83 million (SDR0.729/USD); (iii) May 6, 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) May 19, USD1 million UN COVID-19 Response & Recovery Fund from UNDP; May: (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 June 25, 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, USD0.003 million for personal protective equipment; (c) April, USD0.866 million to prepare the country’s laboratory systems for large-scale testing; (d) April, USD0.171 million worth of food assistance; (e) May, USD0.030 million to conduct outreach campaigns; (f) May, US CDC pledged USD1.69 million to procure laboratory supplies and equipment for COVID-19 testing; (g) June, 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) July 22, 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) July 28, 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) July 30, 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).

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures

(i) April, The NBT hiked the policy rate by 50 basis points to 12.75% to contain inflationary pressures; (ii) June, Credit institutions are exempt from paying fees for the settlement system and have been asked to avoid non-essential expenditures.

12 - Non-Economic Measures

April: (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, travel restrictions, and suspending prayers at mosques; (ii) The task force is preparing for potential outbreak by arranging testing labs, medical equipment, supplies, and personnel across the country; (iii) May, All schools will remain closed until May 10; (iv) On June 6, the government presented a reopening plan which includes (a) resuming operations of bazaars, cafes, beauty and hairdressing salons, and barber shops along other businesses starting on June 15. All businesses must adhere strict cautionary measures, including regular disinfection of premises and observance of social distancing; and (b) while restrictions on public transport will be removed and intercity travel remains open, international flights are not expected to resume until further notice; (v) August 18, Schools reopened after 4 months with measures to prevent COVID-19.