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Short macroeconomic review and banking system activity of Tajikistan for the first half of 2016
The next press conference on results of activity of the National Bank of Tajikistan and banking system of the country for the first half of 2016 has taken place today, on July 25, 2016 with participation of representatives of domestic and foreign mass-media.
In the beginning of press conference the Chairman of the National Bank of Tajikistan Jamshed Nurmahmadzoda has noted that the National Bank of Tajikistan with a view of decrease in negative influence of world crisis has directed its consecutive efficient monetary and exchange rate policy for maintenance of money supply stable growth in economy, retention of necessary price level, financial stability and promotion of stable growth of economy. Also it is necessary to note that despite problems during a crisis period the economic indicators and indicators of banking system of the Republic of Tajikistan for the first half of current year are considered as positive.
Gross Domestic Product (GDP)
According to statistical data the Gross Domestic Product (GDP) for the first half of current year has reached TJS 21 979,3 million and its real growth has made 6,6 % that in comparison with the similar period of last year is more for 0,2 percentage points. The given increase basically has been caused by growth in construction sphere on 18,9 %, industry on 12,1 %, agriculture on 9,9 % and retail trade on 3,4 %. For this period the import of goods to the republic was reduced by 4,8 % and export has increased up to 4,4 %.
Inflation
The inflation rate for the reporting period has made 3,1 % that in comparison with the similar period of previous year is more for 0,5 percentage points. The greatest change of price level falls on January of current year, which has made 1,4 %, and basically has occurred for the account of influence of exchange rate pressure and seasonal factors. The level of annual inflation (for last 12 months) in June has made 5,5 % and has reached to indicator of the similar period of previous year.
Official exchange rate of somoni
The Chairman of NBT has informed that the exchange rate of somoni with account of taken influencing measures directed on maintenance of internal exchange market stability has become stronger, which has in turn created a basis for stable change of price level.
The official rate of TJS in relation to US dollar from the beginning of year on June 30, current year has decreased by 10,7 %, 10,4 % of which falls on January and 0,3 % on February. For last 4 months the exchange rate change was not observed.
The cash US dollar exchange rate for this period has grown up to 4,1 % while its growth for the similar period of previous year made 13,6 %. The difference between official exchange rate and cash US dollar exchange rate has been lowered from 17,5 % (22.01.2016) by 0,3 % (30.06.2016) and the given difference will be regulated within limits to two percent.
Monetary and exchange rate policy
The National Bank of Tajikistan as a regulator of banking system of the country taking into account economic and financial situation has conducted a balanced monetary policy for preservation of necessary level of money supply in circulation, stabilization of inflation rate and restriction of steady exchange rate changes.
Also, the Chairman of the NBT Jamshed Nurmahmadzoda has underlined for the purpose of money supply regulation and decrease in inflationary and exchange rate risks it was conducted 48 auctions of securities for the amount of TJS 1,7 billion during six months of current year that in comparison with the similar period of last year is more on TJS 1,4 billion. Also for this period the refinancing rate has been changed from 8,0 to 9,0 % per annum.
At the same time, 4 auctions of State treasury bills of the Ministry of Finance of the Republic of Tajikistan for TJS 159,6 million have been held that in comparison with the similar period of last year is more for TJS 39,8 million.
Also for this period there was a range of measures taken with purpose of settling situation on the internal exchange market and stabilization of national currency exchange rate in relation to US dollar in field of monetary policy and also administrative and supervising measures.
Including:
- New centralized control system of buying and selling cash foreign currency operations was applied;
- All exchange bureaus of credit institutions have been closed, exchange operations with cash foreign currency are carried out in cash desks of money transfer offices, banking services centers, branches and head offices of credit institutions;
- An activity of electronic auction uniform system in the interbank exchange market on the basis of a working platform "Thomson Reuters" has been improved, all banking operations of the National Bank of Tajikistan and credit institutions with foreign currency are carried out by the given system;
- For efficient regulation of internal exchange market, preservation of stability of national currency exchange rate and dedollarization policy implementation the National Bank of Tajikistan has introduced the new procedure of payment of the Russian ruble transferred by physical persons from abroad and its further sale on the interbank market;
- It is continued a revision of legislation and regulatory legal acts on exchange regulation and exchange control and procedure of banking operations with foreign currency, also for the purpose of increase of physical persons and legal entities responsibility for illegal use of foreign currency in the internal operations (purchase and sale of goods for cash foreign currency) and illegal purchase – sale of foreign currency the Code of Administrative Violations and Criminal Code of the Republic of Tajikistan have been amended and supplemented.
Banking system
During press conference it has been noted that for strengthening of financial stability of credit institutions, the activity of NBT was directed on support of small and medium business and also on attraction of foreign investments.
There are 112 credit institutions functioning in the territory of the republic for the reporting period including 18 banks and 94 microfinance institutions. The number of banks has increased for 1 unit and number of microfinance institutions reduced by 12 units in comparison with the beginning of current year.
Total assets of credit institutions for the first half of current year have made TJS 19,6 billion having increased in comparison with similar period of last year for TJS 13,8 billion. The total liabilities and balance capital of credit institutions in comparison with the similar period of last year have increased by 15,7 % and 2,7 %, having made TJS 17,0 billion and TJS 2,6 billion accordingly.
Deposits
Chairman of the National Bank of Tajikistan has stated that total amount of deposits balance of credit institutions as of June 30, current year has made TJS 9,5 billion that in comparison with the similar period of last year is more for 22,5 %. It is necessary to note that the volume of deposits of physical persons and legal entities in comparison with the similar period of last year has increased by 17,3 % and 31,2 % accordingly, and their share makes 59,9 % and 40,1 % of total balance of deposits accordingly.
Loans
The total amount of loans balance for the end of the reporting period has made TJS 10,9 billion that in comparison with the similar period of last year is less for 0,7 %. Despite the given decrease it is necessary to note that an issuance of long-term loans (more than for one year) has tended to growth. The balance of such loans for the reporting period has made 57,4 % of total amount of loans balance that in comparison with the similar period of last year is more for 8,5 percentage points.
The greatest share of the issued loans falls on industry branch on 35,7 %, foreign trade on 18,8 %, construction on 6,3 %, consumption on 11,4 %, agriculture on 11,8 %, transport on 7,7 %, financial intermediary on 2,0 %, services on 4,0 % and other branches - 2,3 %. Also it is necessary to underline that 56,3 % of total amount given out by credit institutions for the reporting half-year falls on production entrepreneurs.
Payment system
During the press conference also it has been noted that it has been made more than 29,9 million payments for TJS 181,2 billion in the republic’s territory for the first half of current year by various ways of settlements and the quantity of payments has decreased by 42,9 % and volume of payments has increased by 1,7 % in comparison with the similar period of previous year.
For this period total quantity of payment cards issued by credit organisations, has reached 1,56 million units, and the quantity of owners of payment cards has reached 1,54 million persons that in comparison with the similar period of last year is more for 26,7 % and 28,0 % accordingly.
The total number of banking accounts opened for clients in credit institutions as of July 1, current year has increased in comparison with the similar period of last year by 16,9 %, having made 3,0 million units.
It was ensured uninterrupted an activity of National Payment System «KORTI MILLI» and for half of current year the quantity of participants of the given system has reached 16 credit institutions. It has been issued 1 101,9 thousand units of national cards issued by credit institutions - participants of National Payment System «KORTI MILLI» that in comparison with the similar period of last year is more for 45,1 %.
For the first half of current year the quantity of ATM in the country has made 779 units that in comparison with the similar period of last year is more for 47 units. The quantity of electronic terminals for the reporting period has reached 2 295 units, 618 units of them are electronic terminals located in point-of-sale and services and 1677 units of electronic terminals in cash issuing offices.
In the conclusion of press conference, representatives of foreign and local mass-media have received precise answers on reforms in banking system, macroeconomic situation, monetary and exchange rate policy, inflation rate, remittances, attraction of foreign investments to economy, use of payment cards, money supply in circulation and level of trust of population to banking system.
Press-service
NBT