The overall results of 2007 first quarter were summarized in the National Bank of Tajikistan

On April 25, 2007 the next press-conference on overall results of current year first quarter took place in the National Bank of Tajikistan where bank management and management of its structural subdivisions have participated.

Mr. M.M.Alimardonov, Chairman of the National Bank of Tajikistan and Mr. J.K.Eshov, Deputy Chairman have addressed the conference on done work. In particular it was noted that GDP growth for the first quarter of current year has been continuing and it estimated 5,3% including industrial production amounted 5,2% and agriculture -5,4%. For this period the GDP amounted 2041,5 million somoni that against similar period of last year has increased for 495,4 million somoni or to 32%. As for inflation estimating 2,2% it was stable for the first quarter of 2007. Rise in prices occurs for account of the following group of products: foodstuff – 1,8%, non-foods – 0,2%, in the group of paid services it was 8,0%.

It was emphasized that despite the inflation pressure downward the general demand remained stable on the base of improvement of population power capacity, wage increase and money income of population and also because of labor migrants’ remittances it strengthens the dynamics of production supply and services.

Concerning the national currency rate it was noted that Tajikistan applies policy of free floating exchange rate without limits and exchange rate is set forth on the base of market demand and supply. NBT can intervene in the work of market only in case of sharp changes in exchange rate with purpose of its stabilization.

For first quarter the exchange rate of somoni against US dollar changed to 0,4% (3,4265 to 3,4392 somoni).

The NBT management opening a subject on monetary policy has noted that monetary policy implemented in coordination with fiscal policy is directed to regulation of solvency. Thus, indicators of monetary policy implementation have the following position: refinancing rate for the reporting period increased from 12% to 13%, required reserves volume has not changed and it remained within 12%, it was continued the sale of NBT certificates through auction.

For the reporting period the main financial indicators of banking system remained stable, activities of banks and credit institutions were sounder and extension of banking operations in remote districts was observed. In this regard total assets of banking system (assets, funds in cash desks, loan portfolio and fixed capital) for three months of current year against the beginning of the year have increased up to 11,1% and estimated 1,9 billion somoni. As for liabilities (deposits, attracted funds, liabilities) for this period they increased up to 12,7% that estimated 1,5 billion somoni. Balance capital from its part has increased from 350,9 million somoni to 367,1 million somoni that against the beginning of the year increased to 4,6%. The banking system of Tajikistan as for April 1, 2007 consisted of 9 independent banks, 1 foreign bank branch, 8 credit societies and 65 non-banking financial institutions.

The deposits for the reporting period continued tendency to increase and estimated 1,210,5 million somoni that in compare to the beginning of the year increased to 9,2%. This indicator is featured as positive and shows raised trust of population to banking system and increasing role of banks in attraction of deposits and acceleration of internal investments process.

For this period the average weighted interest of deposits stabilized relatively and deposits in national currency estimated from 19,6% to 23,6%, for deposits in foreign currency it was from 18,7% to 20,0%. Also there were considered issues of crediting in the country especially issues of micro crediting in mountainous districts.

The Chairman of NBT has answered questions of mass media representatives and has given explanations at the conclusion of address.