DUSHANBE, November 3, 2009, Asia-Plus -- The term of repayment of last year’s government credit expired on November 1, however, four of six banks have failed to repay their debts so far.  Among them are Orienbonk, Agroinvestbonk, Tajprombank and Amonatbonk (Tajikistan’s savings bank).

In 2008, the government gave a 140 million somoni credit to cotton farmers to cotton farmers through six banks and only 64 percent (89.6872 million somoni) of that has been repaid by October 30, the source the Ministry of Finance (MoF) said.

According to him, the ministry specialists will thoroughly study the situation and after that adequate measures will be taken to ensure repayment of last year’s debt.

We will recall that in 2008, the government gave a 140 million somoni credit to cotton farmers through Amonatbonk (40 million somoni), Agroinvestbonk (50 million somoni), Orienbonk (35 million somoni), TSB (5 million somoni), TDB (5 million somoni), and Tajprombank (5 million somoni).  The loans were supposed to be paid off by April 1, 2009.

In March this year, Agroinvestbonk appealed to the government, asking to postpone debt repayments for cotton farmers until the end of the year.  Agroinvestbonk justified its request for postponement of debt repayments by saying that the fall in the international price of cotton and in demand for the product has hurt many Tajik farmers.  The government agreed to extend the debt repayment term until November 1, 2009, while banks now intend to ask the government to postpone debt repayments until July 1, 2010.

Only Tojik Sodirot Bonk (TSB) and Bonki Rushdi Tojikiston (Tajikistan Development Bank) have paid off their debts to this day, while Amonatbonk has repaid 71 percent of the government credit so far, Agroinvestbonk – 61 percent, Tajprombank – 58 percent and Orienbonk – only 43 percent, the source added.