The short macroeconomic review and results of activity of banking system of Tajikistan for 9 months of 2010

The results of activity of the National Bank of Tajikistan and banking system of the country for the 9 months of 2010, the course of realization of monetary policy, inflation rate, exchange rate of national currency, volume of remittances, development of banking system, deposits and other actual questions have been discussed during the next press conference of the National Bank of Tajikistan, which took place on October 21, 2010 in the republican press-centre for domestic and foreign journalists.

The Chairman of the National Bank of Tajikistan Sh.Rahimzoda has noted in his address to journalists that as previous half-year it was observed a stable growth of national economy and banking system for 9 months of 2010, which basic indicators are featured as follows:

1. Macroeconomic indicators

Gross Domestic Product (Gross Domestic Product) For the accounting period the GDP has increased for 6,2 % and reached TJS 17,0 billion that it is more to 3,5% concerning the similar period of last year.

Inflation rate. The inflation rate for this period has made 6,7 %. The forecast of inflation for current year is expected to 9,0 %.

Exchange rate of TJS to US dollar has decreased to 0,25% in compare to the previous year.

Trading Balance. The foreign trade turnover for 9 months has made USD 2634, 2 million and has increased to 3,6 % concerning the same period of last year, in particular, the export has increased to 14,0 %, having reached USD 813,3 million and import has decreased for 0,4 % having reached USD 1820,9 million. The deficit of trading balance concerning the same period of last year has decreased for 9,1 %, having made USD 1007,6 million.

Remittances. The volume of remittances for this period has made USD 1665,4 million having increased to 27,7 % concerning the corresponding period of last year.

Despite risks and changes in the world market, a macroeconomic situation in the country has reflected the tendency of stability and considerable strengthening of indicators.

2. Monetary Policy

At present the refinancing rate made 8,0 %. The rate of required reserves makes for deposits in national and foreign currencies - 7,0 % and 9,0 % accordingly

The volume of reserve money as of September 30 of current year has made TJS 2714,7 million having increased to 25,1 % (TJS 544,2 million) concerning the similar period of last year. The cash volume in circulation has made TJS 2,3 billion, TJS 20,3 million of which make metal coins.

For the reporting period the money put in circulation has made TJS 546,5 million and TJS 239,2 million of shabby and unsuitable banknotes have been withdrawn from circulation.

3. 3. Development of Banking System (recent data)

The quantity of bank institutions for the reporting period has reached 138, including: 14 banks, 4 non-bank credit institutions, 34 microcredit deposit institutions, 42 microlending institutions, 44 microlending funds.

Deposits (recent data)

As of September, 2010 the increase in deposits concerning the same period of last year has made 25,1 % and has reached TJS 2,9 billion. The deposits of individuals have increased to 32,2 % and have made TJS 1,3 billion. The average interest rate of time deposits in national currency has made 15,68 %, in foreign currency - 15,08 %. In comparison with the same period of last year the average interest rate of time deposits has increased in national currency to 0,4%, in foreign currency - 1,7%.

Credits (recent data)

The total balance of credits for the reporting period has increased to 2,0 % and has reached TJS 5,8 billion, 70,2 % of which are credits in national currency and rest 29,8% - credits in foreign currency. The volume of issued credits for this period made TJS 3,5 billion and has increased against the same period of last year to 25,0%.

The average maturity of credits for the reporting period for individuals makes 364 days, for legal entities- 307 days. The average interest rate of credits, which are issued in national currency makes 21,41 %, in foreign currency - 22,34 %.

For 9 months of current year the volume of small credits has increased to 8,2 %, having made TJS 1327,9 million.

Payment System

The total payments in the republic has increased to 3,8 % and has reached 8,3 million units. The total amount of payments has made TJS 95,7 billion that for 74,7 % is more against the same period of the previous year. There are 8 banks - emitters of plastic cards function in the republic, they issued 117882 units of payment cards, the increase makes 85,1%. Besides, for the reporting period it was observed a considerable increase in comparison with the same period of last year in quantity of ATM up to 208 units, cash issuing offices – 172 units and Points-of-sale – 93 units.

During the second part of the meeting, which was held in business and interesting atmosphere, foreign and local journalists have received precise answers for their questions. In the questions representatives of mass media were interested, basically in problems of banking system, inflation rate, increase of shabby bank notes in circulation, volume of gold and foreign exchange reserves of the country, attraction of foreign investments into economy of the republic and incoming remittances from labor migrants.

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