AKIPRESS.COM - The Eurasian Fund for Stabilization and Development (EFSD) has approved a US$40 million loan to support economic development of Tajikistan.

This loan is an important argument for the process of integration of Tajikistan into the Eurasian Economic Union (EAEU), Dmitry Pankin, Chairman of Eurasian Development Bank (EDB)’s Management Board, told Izvestiya on the sidelines of the St. Petersburg International Economic Forum.

Experts believe that this loan is an important argument for the integration process against the backcloth of the strengthening of China’s influence on Tajikistan.

Izvestiya reports the loan will be provided in two tranches 20 million U.S. dollars each. Tajikistan reportedly can receive the first tranche in the near future.

“We are currently considering conditions for implementation of requirements by the country to which the loan is provided,” Pankin said, noting that Tajikistan has to remove many budgeting problems and problems existing in the banking system.

“We are most concerned over the large number of ungrounded tax exemptions, which are lobbied by local entrepreneurs and do not bring any real benefit to the country’s economy,” Pankin said.

Deputy Director of the Center for Strategic Studies under the President of Tajikistan, Sayfullo Safarov, considers that the provision of the loan is an initiative of the Russian Federation “in the framework of the integration process.”

“Moscow wants Tajikistan to become member of the Eurasian Economic Union as soon as possible. Anyway, the provision of the US$40 million loan is a positive gesture. Tajik authorities appreciate this and Tajikistan thinks positively about the idea of joining the Eurasian Economic Union,” deputy head of Tajik think tank said.