Short macroeconomic review and activity of banking system of Tajikistan for 2016

The next press-conference following the results of activity of the National Bank of Tajikistan and banking system of the country for 2016 has taken place today, on January 23, current year with participation of domestic and foreign mass-media representatives.
In the beginning of press-conference the Chairman of the National Bank of Tajikistan Jamshed Nurmahmadzoda has noted that in 2016 the National Bank of Tajikistan has consistently directed its monetary and exchange rate policy on maintenance of stable growth of money supply in economy, preservation of necessary price level, financial soundness and promotion of stable growth of economy. Also it is necessary to note that economic and banking system indicators of the Republic of Tajikistan for the reporting period are assessed positively. 

Macroeconomic indicators

Gross Domestic Product (GDP)

Despite the negative influence of financial and economic crisis, a real growth of economy in 2016 has made 6,9 % in comparison with the similar period of last year, its nominal volume has reached TJS 54,5 billion.

Inflation
For the reporting year as a result of necessary measures taken by the National Bank of Tajikistan it was ensured a stable price level in the republic and inflation rate following the results of reporting year has made 6,1 %. It is necessary to note that the inflation rate, which in 2016 has been projected within 7,0 %, has decreased in comparison with projected level by 0,9 percentage points.

Balance of Payments
The foreign trade turnover in 2016 has made USD 3 929,6 million and has decreased by 9,2% against last year.
According to statistical data the volume of goods export for the considered period has made USD 898,7 million having increased in comparison with last year on 0,9 %. The import of goods has reached USD 3 030,9 million having decreased in comparison with last year by 11,8 %.

2. Exchange rate of national currency
The Chairman of NBT has informed that for the given period the exchange rate somoni was under the influence of balanced supply and demand factors within the limits of a floating adjustable mode.
The exchange rate of national currency as a result of application of adjusting measures directed on maintenance of internal exchange market stability has become stronger, which has in turn founded a basis for stable change of price level. The official exchange rate of TJS in relation to the US dollar from the beginning of year on December 31, 2016 has decreased by 10,8 %, 10,3 % of which falls on January, 0,3 % on February and 0,2 % on March-December.

In 2016 it was ensured the stable situation of internal exchange market and stable change of exchange rate of national currency in relation to the US dollar as a result of taken efficient measures, implementation of strict control and other effective measures of monetary and exchange rate policy.
The taken measures have reduced for several times a turnover of cash foreign currency, have lowered dollarization of cash market and ensured a stabilization of somoni and reflected positively in change of monetary turnover structure in economy, wide use of national currency as legal payment tender and savings of population.

3. Monetary policy
The National Bank of Tajikistan in 2016 considering an economic and financial situation and with the purpose of negative influence of external factors elimination and promotion of steady growth of national economy has directed its activity on implementation of consecutive and efficient monetary and exchange rate policy, provision of economy with money and preservation of stable price level and also financial soundness.
The Chairman of NBT Jamshed Nurmahmadzoda has underlined that with the purpose of efficient liquidity control and mitigation of exchange rate risks, a refinancing rate has been changed from 8,0 to 11,0 % and reserve requirements ratio has been left without changes for support of real sector of economy. The given ratio makes 1,5 % per annum in national currency and 7,0 % per annum in foreign currency.

For efficient implementation of monetary policy and activation of securities market the National Bank of Tajikistan for the reporting period has held 102 auctions of securities for TJS 4,3 billion that in comparison with 2015 is more for TJS 2,5 billion or for 2,4 times. It is necessary to note that with a view of strengthening of securities market infrastructure the National Bank of Tajikistan has held auctions of securities by electronic auctions system.

4. Banking system
During press conference it has been noted that for the reporting period an activity of banking system of the country first of all has been directed on stabilization of financial situation of credit institutions and attraction of internal and foreign investments.
There are 104 credit institutions as of December 31, 2016 functioning in the territory of the republic including 18 banks and 38 microcredit deposit organizations, 14 microcredit organizations and 34 microlending funds. The quantity of branches of credit institutions for the reporting period has made 437 units, 84 units of which are branches of microfinance organizations.
The total assets of credit institutions for the end of reporting year have made TJS 21,2 billion, having increased in comparison with last year by 13,6 %.

Deposits
The Chairman of NBT has underlined that total amount of deposits balances as of December 31, current year has made TJS 9 billion and 243 million that in comparison with similar date of last year is more for 7,3 %. The volume of deposits balances in national currency has increased by 32,0 %. Their share in structure of total balances of deposits in national currency has made 37,5 % and in foreign currency - 62,5 % (in comparison with 2015 it was 28,5 % and 71,5 % accordingly).

Credit investment
Total amount of loans of banking system for December 31 of fiscal year made TJS 9 billion and 930 million. The greatest share of issued loans fall on industrial branch at 35,0 %, foreign trade - 20,6 %, construction - 6,3 %, consumption - 13,9 %, agriculture - 10,7 %, transport - 6,0 %, financial intermediary - 1,6 %, services - 4,4 % and other branches - 1,5 %. Also for the reporting period the volume of issued micro loans has made TJS 3,6 billion.

5. Payment system
According to preliminary data in 2016 there were made more than 59,9 million payments for total amount of TJS 395,4 billion in the territory of the republic by various settlement means.
As of December 31, 2016 the total quantity of payment cards has reached 1 620,3 thousand units and quantity of owners of payment cards has reached 1 605,2 thousand persons that in comparison with similar date of last year is more for 12,0 % and 12,5 % accordingly.
It has been noted that a terminal network for servicing holders of payment cards has extended and at present the quantity of ATM makes 799 units and number of cash dispensers - 2 454 units that in comparison with the similar period of last year is more for 37 units and 240 units accordingly.
With the purpose of extension of population assess to financial services, growth of clearing settlements and introduction of new technologies it is provided banking services to clients by radiotelephone mobile communication (mobile phones) and by Internet. In 2016 it has been effected 683 thousand units of operations for TJS 109 million by means of a radio telephone mobile communication and by Internet - 281 thousand operations for TJS 7 944 million.

6. Applications of citizens
At the end of his address the Chairman of NBT has underlined that the National Bank of Tajikistan has accepted and considered applications and complaints of citizens in oral and written forms by phones and through official web site with the purpose of protection of banking services consumer rights. For the reporting period as a whole it was received 1 673 applications and complaints for consideration.
Along with it the National Bank of Tajikistan took under its strict control the requirements of the Law of the Republic of Tajikistan “On applications of citizens” and takes necessary measures for its implementation. Also in 2016 the management of NBT has met with 459 citizens and all complaints indicated in their applications were settled within the requirements of current legislation.
In the final part of the press conference representatives of foreign and local mass-media have received precise responds for their questions concerning reforms in banking system, macroeconomic situation, monetary and exchange rate policy, remittances, attraction of foreign investments to economy, use of payment cards, volumes of money supply in circulation and level of the population trust to banking system.

Press-service
NBT