Abstract
This paper discusses Tajikistan’s Fifth Review Under the Poverty Reduction and Growth Facility (PRGF) and Request for Waiver of Performance Criterion. The macroeconomic outcome in the first quarter of 2005 was satisfactory, but the deteriorating external environment will make it harder to achieve some of the program’s original targets. Expenditure delays and strong nontax revenues resulted in a significant fiscal surplus in the first quarter of 2005. The fiscal outlook for the remainder of 2005 looks less favorable owing to lower-than-projected commodity prices.
The Executive Board of the International Monetary Fund (IMF) has completed the fifth review of the Republic of Tajikistan’s performance under its economic reform program supported by a three-year Poverty Reduction and Growth Facility (PRGF) arrangement. Completion of the review was on a lapse of time basis on July 18, 2005 and enabled the Republic of Tajikistan to draw an amount equivalent to SDR 9.8 million (about US$14.3 million) under the arrangement.
The IMF’s Executive Board approved the three-year arrangement on December 11, 2002 (see Press Release No. 02/54) for an amount equivalent to SDR 65 million (about US$95.2 million). Drawing the amount made available by completion of this fifth review brought total disbursements under the arrangement to SDR 55.2 million (about US$80.8 million).
The PRGF is the IMF’s concessional facility for low-income countries. PRGF-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners and articulated in the Poverty Reduction Strategy Paper (PRSP). This is intended to ensure that PRGF-supported programs are consistent with a comprehensive framework for macroeconomic, structural, and social policies to foster growth and reduce poverty. PRGF loans carry an annual interest rate of 0.5 percent and are repayable over 10 years with a 5½-year grace period on principal payments.
