DUSHANBE. June 8. “Asia-Plus” -- The Executive Board of the International Monetary Fund (IMF) today completed the first and second reviews under a three-year Extended Credit Facility arrangement with Tajikistan. The completion of the reviews enables the immediate disbursement of an amount equivalent to SDR 26.12 million (about US$38.2 million), bringing total disbursements under the arrangement to an amount equivalent to SDR 52.22 million (about US$76.3 million), IMF press service reported yesterday, June 7.

Additionally, the Executive Board approved Tajikistan’s request for the increase of access under the arrangement to SDR104.4 million (about US$152.6 million) from SDR 78.3 million (about US$114.5 million). The augmentation is justified in view of Tajikistan’s low level of international reserves and domestic and external vulnerabilities. The increase will not materially affect debt sustainability.

Following the Executive Board’s discussion on Tajikistan, Mr. John Lipsky, First Deputy Managing Director and Acting Chair, stated that “Tajikistan has been severely affected by the global financial crisis mainly through a sharp decline in remittances which reduced the real income of the population.”

“The external environment is expected to improve in 2010, but the level of international reserves remains low,” Mr. Lipsky has said.

He also said that “the authorities plan to address the structural energy deficit and achieve energy independence, including by accelerating the construction of the Roghun Hydropower Project. The recent campaign to finance this project through equity sales has curtailed disposable incomes and is estimated to weigh on the growth prospects for 2010. As such, the phasing out of the equity campaign is welcome. The authorities should continue to work closely with the World Bank on the ongoing feasibility study of the project and to form an international consortium to finance Roghun once the feasibility study is completed, taking into account Tajikistan’s debt constraints.”