Dar Es Salaam — President Jakaya Kikwete has moved to save sectors that are most hit by the global economic crisis in the country.

Mr. Kikwete last week said TShs1.7 trillion (about US$1.2 billion) has been set aside to prevent the global economic crisis from further affecting Tanzania.

He revealed this while addressing Members of Parliament and local elders at Kimani Hall in Dodoma.

The package is included in the 2009/10 budget that was presented before Parliament on June 11.

Due to the economic downturn, about 48, 000 people have been rendered jobless and many more may follow victim if nothing is done.

Prices for exports like tanzanite and other precious stones have dwindled, flowers are of less demand in the European market and the number of tourists has dropped.

Kikwete said that this year's budget was meant to ease the effects of the global financial crisis and also protect the gains attained during the last two decades from being wiped out.The government has set aside TShs21.9 billion to pay for losses suffered by several firms and co-operative unions in the agricultural sectors.

Kikwete said many co-operatives and farmers who borrowed billions of shillings from banks have failed to settle their debts, and therefore the government has shouldered the responsibility.

The government fears that if the debts are not settled, many companies risk losing opportunities of loans leading to liquidation of their property and increase of poverty.

The stimulus package is broken down as follows: TShs21.9 billion to compensate crop buyers' loans; TShs45 billion to guarantee loan rescheduling; TShs80 billion plus TShs120 billion, both from government and banks respectively as working capital at affordable interest rate; TShs10 billion to boost the export guarantee scheme to enable it lend out TShs65 billion. Others are TShs10 billion meant to boost small and medium enterprises (SMEs) scheme to enable it issue credits worth TShs60 billion; TShs20 billion to ensure food security through increased production; TShs20billion set aside for farm implements under the lease financial scheme; and TShs117 billion being fertilizer subsidy with government and World Bank.