IMF Completes Sixth Review under ECF Arrangement for Tajikistan
OREANDA-NEWS. May 10, 2012. The Executive Board of the International Monetary Fund (IMF) has completed its sixth review of
The three-year SDR 104.4 million ( USD 161.9 million) ECF arrangement with
Adherence to the policies agreed under the Fund-supported program has played an important role in helping
Program performance through end-2011 was strong, with all quantitative targets met and most structural benchmarks completed. A treasury single account was introduced at the beginning of April to strengthen public financial management, a fiscal risk assessment related to the condition of state owned enterprises was completed and published on the ministry of finance website, and a draft of a revised tax code, incorporating a number of recommendations from IMF technical assistance, was submitted to government. An external financial audit of the Roghun Open Joint Stock Company (OJSC) is also near completion, and is expected to be published soon.
The outlook for 2012 and the medium-term is positive, but not without risks. High oil prices and recent increases in electricity tariffs will add upward pressure on energy prices. Trade disruptions and higher rail transport tariffs at the beginning of 2012 highlight risks to import prices. Decisive action is needed to address financial sector weaknesses, which represent a quasi-fiscal risk. Key will be minimizing taxpayer cost and addressing the root causes of the problem—directed lending, weak corporate governance, and regulatory forbearance. Over the medium-term, steady budget consolidation will be needed to maintain fiscal sustainability and rebuild buffers drawn down during the crisis. Further reform of tax policy and tax administration will also be needed to support private sector-led growth and job creation.
1 The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.
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