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indecon successfully concluded EU funded project on PFM and SOE in Tajikistan

The EU funded project “Safeguarding Against Fiscal and SOE Risks” was successfully implemented from December 2013 until March 2017. The beneficiary was the Ministry of Finance of the Republic of Tajikistan, specifically its SOE Monitoring Department (SOEMD).

Key achievements of the project are:

  1. Development of a Fiscal Risk Management Strategy (FRMS). On September 15, 2016, the Strategy under the title of Fiscal Risks Management Strategy (FRMS) was approved by Presidential Decree N 755;
  2. Preparation of Statements of Fiscal Risks (SFRs) for 2013, 2014 and 2015 fiscal years. They gradually enhanced disclosure on SOEs
  3. Compilation of a comprehensive list of SOEs that was non-existent before;
  4. Amendment to Dividend policy for SOEs, expanding it to SOEs with more than 50% state ownership. The proposed amendments were approved by the government (Regulation 208 signed by the President on 30 April 2016);
  5. Development of reference guides for the analysis of banks and insurance companies utilizing a set of specific financial ratios being consistent with capital adequacy and other norms recommended by the Basel Committee on Banking Supervision;
  6. Drafting a new version of the Law on State-owned enterprises (SOE Law), thus introducing a revised definition of a SOE consistent with the latest Government Financial Statistics Manual of the International Monetary Fund 2014. Further, new definitions of “control” and “economically significant prices”, based on the concepts and definitions applied in the Government Financial Statistics Manual (GFSM) 2014 of the International Monetary Fund were introduced. Application of this law has been expanded to joint stock companies and limited liability companies with a state majority ownership that were not captured by the provisions of the existing law. The draft law was submitted to the MoF and included in the MoF action plan for 2017;
  7. Drafting a Corporate Governance Code for State Enterprises defining rights and obligations for the state as shareholder;
  8. Analytical and benchmarking studies on selected five large SOEs presented and discussed with the respective management.