DUSHANBE, April 14, 2009, Asia-Plus  -- President Emomali Rahmon has decided to support the country’s agrarian sector and extend the last year’s government credit repayment period for banks till November 1, Deputy Finance Minister, Jamshed Norinov, said in an interview with Asia-Plus.

According to him, the decision was made at a meeting of President Rahmon with heads of banks that was held in Dushanbe on April 10.  “Taking into consideration an impact of the global financial crisis on the cotton subsector, the president considered it necessary to support the country’s agrarian sector and extend the last year’s government credit repayment period for banks till November 1,” said the deputy minister, “Besides, the annual interest on the government credit provided to banks has been reduced from 12 to 10 percent.”

The head of state also charged heads of banks to reduce annual interest on loans they provide to cotton farmers from 18 to 14 percent.  

Norinov noted that last year, the government gave a 140 million somoni credit to cotton farmers through banks and only 33 percent (63 million somoni) of that was repaid  

We will recall that the term of repayment of the government credit expired on April 1.  The government last year gave the credit through six banks – Agroinvestbonk (50 million somoni), Orienbonk (35 million somoni), Amonatbonk (Tajikistan’s savings bank – 40 million somoni), Tojik Sodirot Bonk (TSB – 5 million somoni), Bonki Rushdi Tojikiston (Tajikistan Development Bank or TDB – 5 million somoni), and TajPromBank (5 million somoni).   

In early March, Agroinvestbonk asked the government to postpone debt repayments for Tajik farmers until the end of the year because the fall in the international price of cotton and in demand for the product had hurt many Tajik farmers.

As it had been reported earlier, speaking at an April 10 meeting with bankers, President Rahmon charged banks to provide this year’s government cotton credit to farming unit for 1.5 years and at relatively low annual interest.   This year, the government intends to give 180 million somoni to farmers through banks.