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EBRD adopts new strategy for Tajikistan
Tajikistan has made progress in implementing the principles of market
economics over the last two years, but in its latest strategy
for Tajikistan issued today, the EBRD acknowledges that reform efforts
alone will not be sufficient to create the conditions for sustained growth and
poverty reduction in the poorest of its 27 countries of operations.
The strategy document analyses the country's progress in political and
economic transition and outlines its priorities in Tajikistan over the next
two years. The EBRD will concentrate on three key areas:
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Help the private sector develop by improving the investment climate and tackle
the restructuring and eventual privatisation of large state-owned companies
left over from the Soviet era. The Bank's focus will be on small and
medium-sized enterprises (SMEs) and micro businesses. These represent over 90
per cent of total enterprises in terms of numbers, but their access to bank
lending is highly restricted.
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Stimulate the growth of a financial system able to fund the needs of the
private sector, particularly those of SMEs. The Bank will - where possible and
prudent - seek to invest directly in the capital of existing or
newly-established local banks to increase their ability to attract external
funding and domestic deposits. The Bank's policy for the sector will be to
push for high standards of corporate governance and financial transparency.
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Improve the management of public-sector enterprises to create the conditions
for additional investments into the development of critical infrastructure.
There will be a clear focus on high-priority, commercially oriented
investments in close collaboration with donors and other IFIs.
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The Bank will continue to promote policy dialogue with the authorities in
order to improve the investment climate and support their reform efforts.
Tajikistan's challenges go beyond the establishment of well-functioning
markets. The country is highly dependent on access to trade routes from
Central Asia and to the markets of neighbouring countries. Its vast hydropower
resources can only be efficiently developed in a regional context, while
improved road and rail transport also relies on complementary regional
investments.
To help Tajikistan meet these challenges, and given the country's high
indebtedness, which limits the possibility of issuing sovereign guarantees,
the EBRD needs to coordinate its efforts closely with other international
institutions and partners. It will therefore concentrate on projects that
combine EBRD financing with funding from other international institutions and
donor grants.
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