Tuesday, the International Monetary Fund agreed to provide about US$116 million for Tajikistan to counter economic slowdown.

Under Poverty Reduction and Growth Facility arrangement, Tajikistan can draw about US$38.7 million immediately from the three-year loan.

First Deputy Managing Director and Acting Chair of the IMF, John Lipsky said, Tajikistan faces a severe external shock that is being compounded by domestic rigidities.

Tajikistan's authorities have committed to raising transfers to households in response to the economic crisis, and increasing resource allocations for health and education, even though revenues are expected to decline on account of the crisis.

To achieve their overall deficit target, the authorities are delaying some low-priority investment projects and scrutinizing current expenditures carefully, Lipsky said.

The IMF forecasts Tajikistan's real GDP growth to decline to 2% in 2009 fro 7.9% recorded in 2008.

For comments and feedback: contact editorial@rttnews.com