Tajikistan considers reducing interest rates on loans

The weighted average interest rate on loans in national currency as of the beginning of 2019 was at 26.03%, and the National Bank of Tajikistan intends to continue reducing it.

DUSHANBE, 4 March - Sputnik. The National Bank of Tajikistan examined interest rate control policies in the banking system.

You will remember, that the special task force was established for the purpose as far back as last year.

It is noteworthy, that as a consequence, the weighted average interest rate on loans dropped from 28.2% in 2017 to 26% in 2018, and the volume of loans provided escalated from TJS 7.7 billion (US$ 816.5 million) to TJS 8.2 billion (US$ 869,5 million), respectively.

The National Bank emphasizes that work on reducing the interest rates on loans will be continued.

Lola Salimova, Deputy Head of the NBT, noted that in order to strengthen the national banking system, it is necessary to improve the quality of banking services and ensure transparency of operations of credit institutions.

She urged credit institutions to engage in encouraging support to entrepreneurship in the country by offering loans at affordable interest rates.

According to the NBT, the weighted average interest rate on loans in national currency at the beginning of 2019 was equal to 26.03%, and in foreign currency - 17.22%.

Previously it was reported, that according to the determination of the Eurasian Development Bank, the economy of Tajikistan was still vulnerable to crises.

"Despite the continued steady economic growth in the medium term, the economy of Tajikistan remains extremely unprotected facing external and internal shocks” - the EDB Media Center added.

Representatives of the Eurasian Fund for Stabilization and Development, whose funds are managed by the EDB, have conducted consultations with the Ministry of Economic Development and Trade of Tajikistan, Ministry of Finance, Ministry of Energy and Water Resources, and the National Bank.

In the course of the meetings, the participants discussed the current macroeconomic environment in Tajikistan.

It is noteworthy, that in order to achieve sustainable growth and reduce poverty, the country needs to address complex reform-related challenges.