This week, the main stream of business news in Kyrgyzstan came from the country's Ministry of Finance. The ministry announced that it was giving Bishkek a large loan, and its head talked about the amount of external assistance to the country at the moment, about plans to fulfill budgetary obligations and its conditions, as well as about what was being done to reduce the burden of the state debt. In addition, the minister of finance told what had been done to attract investment projects to the country. The country's electricity industry announced accounts receivable in the energy sector of the country. On the whole, the week turned out to be quite active, although business circles are worried by the growing number of coronavirus diseases in the country.
Loan to the city. The Ministry of Finance will provide an interest-free budget loan in the amount of KGS 744.0 million for the payment of salaries and vacation pay to teachers in Bishkek.
It was also announced that the Ministry of Finance of the Kyrgyz Republic financed all expenses related to the payment of pensions, wages, vacation pays and compensations to the population, benefits and social benefits.
Regarding the salaries of educational institutions in Bishkek, it is noted that according to the decree of the Government of the Kyrgyz Republic of May 30, 2013, financing of expenses of educational organizations is carried out from the local budget of Bishkek.
The amount of aid. The budget revenues due to the coronavirus pandemic did not work out as predicted at the beginning of the year.
According to Minister of Finance of the Kyrgyz Republic Baktygul Zheenbaeva said that due to the outbreak of coronavirus infection in the country there has been an economic downturn in all key sectors of the economy.
“There are also significant drops in tax and other income. In this regard, the ministry conducted work to attract external assistance, which was carried out in three directions - to support the budget, to fight against coronavirus and to support the economy. More than USD 291 million has already been received for budget support from the International Monetary Fund and the Asian Development Bank.
Finance Ministry about funds in the budget. The head of the Ministry of Finance of Kyrgyzstan Baktygul Zheenbaeva, answering the question whether there are enough funds in the budget, taking into account the epidemiological situation, said that an emergency budget had recently been adopted, where they tried to take into account all possible risks.
“As you know, we have attracted a fairly large amount of funds to combat COVID-19, taking into account all health care payments. If the situation deteriorates critically, we will respond and take measures,” the minister said.
The minister also noted that the Tax Service deficit amounted to KGS 5.5 billion and the Customs Service - KGS 7.7 billion. This is almost KGS 13.3 billion according to the results of 5 months. “We hope that economic activity will begin to recover, borders will open, and we will be able to close these gaps,” said Zheenbaeva.
Talks on writing off debts. The issue of writing off the public debt is very complex and will take a long time to negotiate carefully.
Minister of Finance of the Kyrgyz Republic Baktygul Zheenbaeva told that today there is an agreement on the Paris Club member countries on the postponement of this year's payments to 2022, 2023 and 2024.
“These agreements have just begun. We are currently negotiating not just postpone payments, this is not enough, we need a deep restructuring. To solve this issue, the Ministry of Finance has begun work as soon as the first results are available, we will immediately inform you,” said the minister.
She said that a deep restructuring of external debt implies different processes, somewhere partially written off.
“Maybe it will be an exchange for environmental programs for the green economy. Programs that promote the development of the health sector or social assistance are also possible. Therefore, a deep restructuring may take a different form, depending on which country it is and what agreements we can reach in this or that case,” Zheenbaeva explained.
Investment projects. The Government of Kyrgyzstan is attracting investment projects from development partners in the amount of USD 56.2 million.
Finance Minister of the country said that USD 9 million within World Bank, including medical equipment worth USD 4.2 million to the Health Ministry, also the same equipment worth USD 3.9 million is planned to be supplied.
Labeling company. This week Kyrgyzstan determined the operator (administrator) of the national system for labeling and traceability of marked goods. By the decision of the interdepartmental commission, CJSC Alfa Telecom became the labeling company.
According to the State Tax Service of the Kyrgyz Republic, in accordance with the established requirements, the operator will provide taxpayers with labeling codes for goods subject to mandatory labeling of goods in the Kyrgyz Republic. In addition, the operator will ensure interaction with national operators of the EAEU member states when exporting and importing goods on the territory of the EAEU subject to labeling.
Auction of the Ministry of Finance. As part of the implementation of the Decree of the Government of the Kyrgyz Republic dated June 9, 2020 “On Approving the Program for Financing Entrepreneurship Entities”, the Ministry of Finance of the Kyrgyz Republic held an open auction on June 23, 2020 to place repayable funds under the programs of the German Development Bank (KfW) in the form of targeted bank deposits.
Applications for participation in the auction were submitted by 4 out of 11 commercial banks that met the selection criteria for participation in the auction and entered into cooperation agreements with the Ministry of Finance.
The targeted deposits in commercial banks placed by the Ministry of Finance are to be used by banks to issue loans on concessional terms for entrepreneurial purposes in the agricultural sector in the regions, as the most important sector of the economy for ensuring the country's food security.
Receivables. This week, Severelectro OJSC announced that since the beginning of this year, accounts receivable have grown by KGS 86.9 million.
OJSC Severelectro sincerely thanks the subscribers who, observing payment discipline, paid their bills for consumed electricity. It should be noted that the level of collection of payments directly affects the ongoing repair work in preparation for the autumn-winter period, the report said.
Kabar News Agency
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