Tajikistan has gotten itself in hot water with the IMF over poor reporting of information while the country was borrowing money from the Fund. The authorities failed to mention to the IMF that they had guaranteed a commercial loan of $500 million to the cotton sector, which if defaulted upon would have increased sovereign debt by 50 per cent. The IMF also found misreporting of the level of international reserves in order to appear to be in line with IMF conditions. The IMF demanded repayment within six months after taking into account Tajikistan’s “very difficult economic circumstances … as well as the severe humanitarian crisis prevailing in the country”.
5 March 2008
It is time for the IMF and World Bank to understand their own responsibility and decolonise their approach.
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