The more time the country, like the entire world, is in quarantine, the less business activity is noted. Many business areas are frozen in Kyrgyzstan and business activity decreased markedly. The suspension of the work of many enterprises leads not only to stagnation, but also to a decrease in commodity exchange, its production, and energy consumption is significantly reduced. Almost the entire business world is in force majeure conditions and in this regard, an unusual meeting was held by the WTO, which was attended by Kyrgyzstan. Deferred insurance payments have been announced, the EDB has forecasted on the development of the situation in the economy, the National Bank of the Kyrgyz Republic provides deferred payments on loans received. In general, the week is slightly more optimistic than the previous ones, since there is a slight increase in optimism in the business sphere.
Urgent measures in the energy sector. This week, a very real reduction in electricity charges was announced, which in turn threatens timely repair work and preparations for the upcoming heating season in the country. The management of the National Energy Holding of the Kyrgyz Republic held a conference with the general management of energy companies to discuss the situation in the industry, where priority measures aimed at reducing the consequences of the spread of coronavirus infection were discussed.
The management of the subsidiaries of the National Energy Holding was informed about the current situation in the companies, the measures taken to ensure the safety of employees' health, as well as the possible risks of loss of the profitable part of the budgets of joint stock companies.
The management of the company urged subsidiaries to urgently take anti-crisis measures to respond to the current situation.
WTO and pandemic. Kyrgyzstan took part in a meeting of heads of delegations of WTO member countries, organized in virtual mode through an online platform.
During the meeting, WTO leadership presented a general picture of current trends in world trade amid the negative economic consequences of the outbreak of the COVID-19 pandemic. The world trade relations were severely disrupted due to a sharp aggravation of the incidence rate worldwide. WTO economists estimate that in 2020 world trade will sharply decline in every continent of the world, covering almost all sectors of the economy.
WTO experts estimate that according to the optimistic scenario, the volume of world trade will decrease by 13% compared to 2019. According to the pessimistic scenario, world trade will fall by 32% compared to 2019.
The representative noted that the COVID-19 pandemic poses a very serious and widespread threat not only to the life and health status of people around the world, but also has a significant negative impact on the economies of the world, and the Kyrgyz Republic is no exception. Thus, the opinion was voiced that the crisis can be overcome by the efforts of governments, including through joint coordinated interaction and mutual assistance between countries at the global level.
Thus, the representative of the Kyrgyz Republic emphasized that today, more than ever, international trade, as well as the effective WTO rules governing it, based on the principles of transparency and openness, should play a key role in minimizing the destructive consequences of the crisis in world trade, which the world is currently facing.
In this regard, the Kyrgyz Republic advocated that even in the mode of self-isolation of mission employees at the WTO in Geneva, the work of the WTO platform should be as active as the technical capabilities of remote communications allow and speak out positively regarding the continuation of informal discussions in a virtual format.
Insurance deferrals. This week, it was announced that according to the decree of the Government of the Kyrgyz Republic of April 20, 2020, payers of insurance premiums can submit reports through state social insurance until July 1, 2020 for reporting periods from March 1 to May 31, 2020.
In this case, for late payment of insurance premiums in the amount of arrears for the reporting periods from March 1 to May 31, 2020, no penalty will be charged.
These measures are taken in order to provide support to economic entities due to the introduction of restrictive measures to prevent the spread of coronavirus in the country.
Preferential loans. This week it was announced that more than KGS 1 billion were issued to the country's population under the project “Financing of Agriculture-8”.
According to Minister of Agriculture, Food Industry and Land Reclamation of the Kyrgyz Republic Erkinbek Choduyev, to date, KGS 1 billion 36 million 800 thousand have been issued. At the same time, 1 thousand 776 farmers received preferential loans.
EDB forecast. It became known that the Eurasian Development Bank forecasted that the restoration of economic activity of the countries of the Union, as well as Tajikistan, will begin in the second half of 2020 and be continued in the next two years.
According to the data published by the Bank’s Directorate for Analytical Work in the “EDB Macro Review: Updated Outlook”, the EDB believes that large-scale measures by the authorities in the field of fiscal and monetary policy will support the economies of the region. Their implementation will help smooth out the negative economic and social consequences of the COVID-19 pandemic and create conditions for the normalization of economic activity as the epidemiological situation improves.
Deferred loans. The National Bank of the Kyrgyz Republic is considering a deferral of loans for three months, however, interest will be charged.
Director of the National Bank’s branch in Jalal-Abad oblast Huseyin Akimbekov said that there is enough cash in banks and ATMs in the region. “We carefully monitor their continuous activities. Pensions and benefits can be withdrawn from any ATM.
“Entrepreneurs whose activities were suspended due to a pandemic will not be charged fines and penalties for loans. It also considers the possibility of deferring payment of loans for three months. At present, in the territories where the state of emergency is introduced, loans are not paid on time. After quarantine has ended, they must contact the bank, and the bank will consider each case individually and resolve the issue of a three-month delay. However, it is worth noting that interest will go,” said the banker and explained this by the fact that each bank gives loans to the population at the expense of deposits of other citizens. And the bank has deposit obligations to customers.
Kabar News Agency
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