ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of October 26, 2017 No. 486

About the Strategy of national debt management of the Republic of Tajikistan for 2018-2020

According to article 5 of the Law of the Republic of Tajikistan "About the state and guaranteed by the state borrowing and debt" the Government of the Republic of Tajikistan decides:

1. Approve the Strategy of national debt management of the Republic of Tajikistan for 2018-2020 it (is applied).

2. To the Ministry of Finance of the Republic of Tajikistan together with the relevant ministries and departments of the republic to take necessary measures for strategy implementation of national debt management of the Republic of Tajikistan for 2018-2020.

Approved by the Order of the Government of the Republic of Tajikistan of October 26, 2017 No. 486

The strategy of national debt management of the Republic of Tajikistan for 2018-2020

1. General provisions

1. Formation of public debt is natural consequence of the tax and budget policy of the country. For implementation of timely financing of the republican budget Government of the Republic of Tajikistan programs performs borrowing within adopted agenda of the state external borrowings for the corresponding financial year.

2. The government of the Republic of Tajikistan makes borrowings from external and internal resources. In the field of external borrowing attraction of loans from international financial institutions, foreign states and commercial banks for financing of investment projects in priority industries of economy is performed.

3. In formation of debt rely on the assumption that the borrower will fulfill obligations on timely servicing and debt repayment. In view of receipt of inflow of big investments into the republic there is need for creation of effective procedures of risk management.

4. In this regard ensuring effective management of public debt shall be one of strategic directions of activities of the Government of the Republic of Tajikistan. Solving problem of financing of deficit of the republican budget, the Government of the Republic of Tajikistan shall provide diversification of debt portfolio for the purpose of minimization of maintenance cost, currency, interest and other risks connected with borrowing.

5. Updating of Strategy of national debt management of the Republic of Tajikistan is provided each 3 years. However owing to the developing dynamics of changes of macroeconomic, political and social factors, the possibility of entering into this Strategy of annual adjustments is supposed.

6. The Ministry of Finance annually submits the performance report of Strategy of national debt management of Majlisi namoyandagon of Majlisi Oli of the Republic of Tajikistan and to the Government of the Republic of Tajikistan.

2. Ensuring stability of debt

7. In 2016 national economy developed against the background of increase in prices for consumer goods, prolonged devaluation of national currency in relation to foreign currencies, reducings amounts of foreign investments and currency earnings from export.

8. According to operational data of bank statistics reducing currency receipts is observed due to the transactions connected with general movement of the international currency means. The current situation became source of currency shortage and instability of the demand and supply on it in the domestic market and led to strong devaluation of somoni. Therefore in 2016 the national currency rate to 1 US dollar in comparison with previous year devaluated on percent 10,8.

9. Also during this period essential reducing money transfers of labor migrants took place that affected purchasing power of the population.

10. Despite the proceeding negative impact of external factors on republic economy rate of real GDP growth of the Republic of Tajikistan in 2016 in comparison with the same period of 2015 grew by 0,9 of percent point and made 6,9 of percent against 6,0 of percent of indicator of 2015. Growth of industrial production, agricultural industry, construction, retail trade, amount of the services rendered by hotels and restaurants and also export provided the actual growth of the gross domestic product.

11. For the last years the level of the state and guaranteed by the state debt of the Republic of Tajikistan does not go beyond which excess creates threat to development of the country.

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