The main stream of business communications this week turned out to be related to the fight against COVID-19 and the corresponding efforts of government agencies - the Ministry of Finance, the Ministry of Health, the Ministry of Emergencies and others. As a result of the global pandemic, it became known that direct investment in the country this year has declined. At the same time, the state is working on the task of servicing the state foreign debt, the country's Ministry of Finance provides the relevant government agencies with the necessary financial resources, working on the front line of the fight against coronavirus. The government once again cited data on funds received from international organizations and donors, on the amounts and where they were directed. At the same time, the National Bank of the Kyrgyz Republic introduces new rules, which until recently were not possible in relation to cash.
In general, the events this week reflect the situation in the country, which was significantly complicated due to the increase in casualties from COVID-19.
Reduced investments. At the beginning of the week, it became known that the inflow of foreign direct investment in the republic in January-March 2020 compared to the same period in 2019 decreased by 16.1% and amounted to USD 148.3 million.
According to data of the National Statistics Committee of the Kyrgyz Republic, in the structure of foreign direct investment compared with the first quarter of last year, there was a decrease in all components, with the exception of reinvested profit, the volume of which increased by 2.8 times.
The bulk of foreign direct investment (more than 91%) was directed to enterprises in manufacturing, wholesale and retail trade, exploration, financial intermediation and insurance, as well as construction. At the same time, the volume of investments directed to manufacturing enterprises increased by 9.3 times, the construction sector - by 4.5 times, financial intermediation and insurance - by 1.6 times, while investments in exploration decreased by 12, 6 times, wholesale and retail enterprises - 32.9%.
Public debt service. For the first half of 2020, KGS 15 billion 972.1 million were actually allocated from the state budget of Kyrgyzstan for servicing the state debt.
According to data of the Ministry of Finance of the Kyrgyz Republic, of these, KGS 7,608.3 million are for state external debt, and KGS 8,363.8 million for state internal debt.
The Ministry of Finance of the Kyrgyz Republic notes that earlier it was planned to allocate KGS 28 billion 818.8 million for servicing the state debt of the Kyrgyz Republic according to the approved budget for 2020. After making amendments to the Law of the Kyrgyz Republic “On the republican budget of the Kyrgyz Republic for 2020 and the forecast for 2021-2022”, expenses for these purposes were provided in the amount of KGS 32 billion 821.2 million. In other words, the republic increased the amount of payments on state debt by KGS 4 billion in 2020.
Priority payments. Institutions of the Ministry of Health and Mandatory Medical Insurance Fund (MMIF) are funded as a matter of priority.
Minister of Finance of Kyrgyzstan Baktygul Zheenbaeva said that due to the increase in the incidence of coronavirus, the Ministry of Health and the MMIF of the republic are revising their forecasts and needs for various positions.
The minister recalled that last week the country received funds for external assistance.
“We started to develop them. There is an agreement. Deliveries has begun. In parallel with external assistance, we also make expenses from the republican budget,” Zheenbaeva added.
For medical equipment. The Ministry of Health of the Kyrgyz Republic received KGS110.8 million from the state budget.
According to data of Baktygul Zheenbaeva, KGS 17.8 million from these funds were allocated for compensation payments to medical workers working in the centers of COVID-19.
“KGS 93 million were allocated for the acquisition of consumables for PCR analysis for the diagnosis of COVID-19. In addition, KGS 50 million were allocated for the purchase of oxygen concentrators. The compulsory medical insurance fund allocated KGS 91.7 million for compensation payments to medical workers working in focal zones. Now KGS 300 million are allocated for physicians to purchase personal protective equipment,” the minister said.
Means of the Emergencies Ministry and the Ministry of Foreign Affairs. In addition to the Ministry of Health, additional funds were allocated to two other state bodies. KGS 32.7 million soms has already been allocated to the Ministry of Emergencies of the Kyrgyz Republic for the organization of observations.
According to information released by Minister of Finance Baktygul Zheenbaeva, additional funds were also allocated to the Ministry of Foreign Affairs of the Kyrgyz Republic. KGS 15 million are designed to work with migrants located outside the country.
“In addition, KGS 52.9 million are being considered to be allocated for the Ministry of Emergency Situations to organize work in observations: provision of food, inventory, disinfection, etc.,” the minister said.
Donations. The funds that have been gathered as a result of voluntary donations from Kyrgyz citizens are used only for additional payments to health workers.
All the lists of recipients of these funds are available in the Ministry of Health, and all documentation is selected by the Ministry of Finance. This money was used exclusively by the decision of the commission, which includes deputies of the Jogorku Kenesh, representatives of the Government, the public, mainly the leaders of NGOs. The money that we allocate to the Ministry of Foreign Affairs for working with migrants is exclusively money from the state budget reserve, which is now fully allocated to measures to combat COVID-19, minister Baktygul Zheenbaeva said.
Decision of the National Bank. This week, the National Bank of the Kyrgyz Republic announced that it is suspending the exchange of worn out banknotes and the sale of gold bullion.
Due to the tense epidemiological situation in the country and in order to minimize the risk of the spread of coronavirus infection, COVID-19, the National Bank of the Kyrgyz Republic temporarily suspends the exchange of worn out banknotes, as well as the sale of gold bullion and numismatic values until the epidemiological situation in the country improves, the National Bank of said in its statement.
The agreed amount. Kyrgyzstan will receive a total of USD 627 million from international financial institutions to combat COVID-19.
Vice Prime Minister Erkin Asrandiyev said that USD 321 million has actually been received by this week, the remaining USD 306 million is expected, and the parties are ratifying the agreements.
“26% of all financial assistance comes in the form of grants - USD 106 million. The remaining USD million we receive in the form of loans on concessional terms,” Asrandiev said.
To support the budget. Nearly USD 171 million from donor assistance has already been allocated to cover the country's budget expenditures.
Vice Prime Minister of the Kyrgyz Republic, Erkin Asrandiyev, said that in connection with the current situation on the spread of coronavirus infection, large losses are observed in the in the country's state budget. And in this regard, financial assistance received from donors in the form of grants and preferential funds are sent to cover the budgetary expenses of the republic.
Asrandiev noted that basically all the funds received from donors in the form of assistance are used in two ways: this is budget support and the fight against COVID-19.
Assistance to Kyrgyzstan. Kyrgyzstan purchased medical products, instruments, and equipment for combating coronavirus infection worth USD 2.2 million.
Erkin Asrandiev noted that the World Bank project provided funds for the purchase of medical devices, medicines, equipment. The part of the allocated funds have already been transferred, tenders have been held. It should be noted that under the World Bank ERIK-CERC project, all tenders are conducted strictly according to the requirements of the World Bank and under their control. And only by their agreement, Asrandiev said.
Kabar News Agency
Comments
Post Comment