The beginning of the new 2021 in the business environment in Kyrgyzstan has shown some activation. The Ministry of Agriculture has expanded the list of prohibited goods for export from the country, saving money for housing has now become somewhat easier, and the country's population has begun to use cards more. The National Bank announced an increase in wages in the country. The state has opened a deposit account to legalize money, and Iran expresses its readiness to expand trade with Kyrgyzstan and increase exports.
On the whole, for the beginning of the new year, the business week turned out to be quite acceptable, despite some dominance of politics in the life of the country.
Temporary ban. The previously adopted temporary ban on the export of certain types of agricultural products from Kyrgyzstan at the beginning of 2021 was amended.
According to information from the Ministry of Agriculture of the Kyrgyz Republic, in order to ensure the food security of the country's population and prevent a critical shortage of essential goods, the ministry has initiated a temporary ban on the export of certain types of food. The Kyrgyz Government by it’s resolution from Dec. 30, 2020 amended this document on the terms and lists of goods subject to restrictions.
“Thanks to the previously introduced resolution in November 2020, we managed to find out significant information and reduce the cost of essential goods, which include meat, butter, eggs, etc.,” said Minister of Agriculture Tilek Toktogaziev.
Save up for housing. At the beginning of the year, it was announced that in 2020 the level of housing affordability in Kyrgyzstan compared with 2019 decreased from 6,2 to 5,9 years.
The report of the National Bank of the Kyrgyz Republic on the stability of the financial sector of Kyrgyzstan at the end of the first half of 2020, stated that this is due to the outstripping growth rates of average monthly nominal wages (an increase of 10.5%) over the growth rates of real estate prices (an increase of 6%).
According to the results of the first half of 2020, in order to purchase an apartment with an area of 54 square meters in Kyrgyzstan, it was necessary to postpone the average monthly nominal wage of a family where two people receive income for 5.9 years, all other things being equal.
According to the results of the first half of 2020, a family of three people and which has a minimum consumer budget of 16,515.6 soms (42% of the family's total income) would take 10.9 years to acquire housing.
More cards. As of July 1, 2020, 6 international payment card settlement systems and the Elcard national system functioned in Kyrgyzstan.
According to the report of the National Bank on the stability of the financial sector of the Kyrgyz Republic at the end of the first half of 2020, in recent years there has been a positive trend in the level of increase of bank cards.
Thus, the total number of payment cards in circulation as of July 1, 2020 compared to the same period last year increased by 12.5%, amounting to 3 million 39.7 thousand pieces.
The total number of ATMs and POS-terminals installed throughout the country amounted to 1,771 and 11,518, respectively (of which 9,336 POS-terminals are installed in trade and service enterprises and 2,182 POS-terminals are installed in branches of commercial banks).
Salary increased. At the end of the first half of 2020, the average monthly nominal wage per employee amounted to 18 thousand soms and increased by 10.5%, compared to the same indicator for 2019.
According to the report of the National Bank of the Kyrgyz Republic on the stability of the financial sector of the Kyrgyz Republic, at the end of the first half of 2020, the largest increase in the growth rate of average monthly wages was observed in education sphere- 25.1%, hotel and restaurant activities - 17.9% and in water supply, cleaning, waste treatment and the receipt of secondary raw materials - 17.3%.
Real wages for the six months of 2020 increased by 4.4% compared to the same period in 2019 (in January-June 2019, the growth was 4.3%).
Deposit account. The Ministry of Finance of Kyrgyzstan submitted for public discussion a draft government decree "On accounting and use of funds received on the National Deposit Account".
According to the document, in order to accumulate and targeted use of funds received from legal entities and individuals on a voluntary basis, to support the budget, as well as within the framework of measures for economic amnesty and legalization of funds to ensure payments for socially significant expenses, there is a need to open a separate National deposit account in order to ensure transparency of the transfer, accounting and use of these funds.
Funds voluntarily transferred by legal entities and individuals, residents and non-residents of the Kyrgyz Republic, funds from deposit accounts of law enforcement agencies, within the framework of initiated criminal cases for official and economic crimes, as well as other receipts on a voluntary basis and not contradicting the purposes of opening a deposit account and the legislation of the Kyrgyz Republic will be transferred to this account.
Export to Iran. Iran exports meat and beans from Kyrgyzstan in small volumes.
Iranian Ambassador to Kyrgyzstan Saeed Kharrazi said this week at a meeting with the media that due to the spread of the coronavirus in the world and the quarantine measures, the turnover between Kyrgyzstan and Iran has decreased last year. "Although before that our bilateral trade showed good dynamics and averaged USD 60-70 million per year," the diplomat said.
Kharrazi noted that the signing and implementation of an interim free trade agreement between the Eurasian Economic Union and Iran last year made it possible to achieve a trade turnover of USD 3 billion.
From October 2019 to October 2020, the trade turnover between Kyrgyzstan and Iran amounted to over USD 45 million.
The Iranian ambassador also noted that Iran's participation in hydroelectric power plants construction projects in Kyrgyzstan is now at the stage of development. Negotiations are underway in which projects Iran can take part in. Iran has an intention to take part in all projects in the Kyrgyz Republic on the implementation of hydroelectric power plants, especially small hydroelectric power plants."
Iran is ready. There are no restrictions from the Iranian side on the export of goods from Kyrgyzstan to Iran, Iranian Ambassador to the Kyrgyz Republic Saeed Kharrazi said this week.
“We have no restrictions. That is, any products that are produced in Kyrgyzstan, at the request of the Kyrgyz side, can be exported to the Islamic Republic of Iran,” the ambassador said.
Kharrazi said that economic benefits play a major role in this issue. That is, how profitable is it to export this or that product to Iran.
“As far as I know, soy products from the Kyrgyz Republic are in very good demand in Iran, these are beans, as well as meat. Until recently, we have exported these products in small quantities,” Kharazi said.
Kabar News Agency
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