Address – guidelines and instructions
The staff of the central office of the SSB RT “Amonatbonk” in the big hall of the Bank attentively used to listen the annual address on key aspects of the Founder of Peace and National Unity, Leader of the Nation, President of the Republic of Tajikistan, respected Emomali Rahmon and have noted for themselves the important points set forth in the Address of the Head of State, noting that they are universal the development and prosperity program of the state.
In his annual address to the Majlisi Oli of the Republic of Tajikistan, the President of the Republic of Tajikistan stated that as a result of the spread of the novel coronavirus and the associated rapid decline in economic activity and the unprecedented rise in unemployment, the situation on the planet has become even more complicated, leading to a severe economic, financial and social crisis. It has been noted that in 2020 we have worked in a tense global economic and financial situation, and despite the challenges we faced, we have taken a number of immediate actions to prevent the consequences of the crisis and protect our economic security.
Despite the negative impact of these factors, the immediate actions undertaken by the Government of the country made it possible to ensure the stability of macroeconomic indicators and maintain positive trends in improving living standards of the population.
Our economy grew by 4.5 percent in 2020 and the GDP reached TJS 82.5 billion TJS. During this period, the industrial production increased by 9.7%, agriculture by 8.8% and foreign trade by 0.8%, including export by 19.8% and created a foundation for the country's economic development. In particular, food production increased by 28.3% compared to 2019, which facilitated greater supply of the domestic market with the local produce.
The banking system assets increased from TJS 311 million in 2000 to more than TJS 26 billion in 2020. Last year, credit institutions issued about TJS 10 billion of loans to various sectors of the country's economy, which is 4.6 percent more than in 2019. However, this indicator is still low enough to achieve our development goals.
The low level of lending to the national economy’s areas, weak corporate governance, high operational and credit risks, persistent nonperforming loans, insufficient investment to the banking system, and limited number of foreign bank representative offices are among the shortcomings hindering increased financing of manufacturing enterprises, which needs to be addressed at the earliest possible.
In this regard, the National Bank should bring the legal and regulatory framework in line with the requirements of the latest international practice, and ensure introduction of the corporate governance in financial institutions and gradually increase their statutory capital.
In this process it is important to undertake necessary actions jointly with financial institutions to improve the quality of banking system assets, increase the portfolio of long-term loans to manufacturing enterprises, and vitalize the national rating system for credit institutions and insurance companies.
The National Bank and credit institutions need to implement all necessary actions to attract greater amount of domestic and foreign capital to the banking system, expand banking services through the introduction of financial and innovative technologies and thereby jointly with relevant ministries and agencies undertake actions to fully implement non-cash operations, to avoid human factor while performing settlement transactions with the population.
In order to create favorable conditions for attracting investments from citizens to the national economy, it was proposed to apply amnesty this year for legalization of fund and assets in the Republic of Tajikistan.