Since easing quarantine measures in Kyrgyzstan, the business life almost completely revived, most of the enterprises and farms became more active. State authorities systematically began to assist in revitalizing business activity. The State Property Fund of Kyrgyzstan estimated this week that there are advancements with online tenders for rental premises, but the National Bank of the Kyrgyz Republic predicts a decrease in the country's GDP this year, and at the same time, the poverty level has slightly decreased, domestic gold mining companies have begun to increase profits. Meanwhile, the Government of the country continues efforts to reduce the country's public debt.
In general, the week at the beginning of the summer period was more active than expected, especially during the period of a irreducible number of coronavirus infected, as well as the weekly growth of compatriots from abroad returning to their homeland, a significant part of which are still infected by not complying with the required quarantine measures.
Already working enterprises. 729 thousand 417 business entities operate in Kyrgyzstan, which includes small, medium and large enterprises, farms and individual entrepreneurs.
According to data of the Ministry of Economy of the Kyrgyz Republic, in comparison with 2019, the number of such entities increased by 17 thousand 806 units. The greatest growth occurred among individual entrepreneurs. Over the year, their number has grown by more than 8.4 thousand people.
Also, the number of farms increased by more than 8 thousand.
As of the beginning of 2020, the number of employed people in Kyrgyzstan amounted to 2 million 382.5 thousand people
In 2020, in spite of the pandemic, 4 enterprises were commissioned - two each in Osh and Jalal-Abad regions. The amount of investments in these enterprises amounted to KGS 82 million.
Revenues of Property Fund rose. This year, in the Kyrgyz Republic, budget revenues from online auctions for the rental of property have increased several times.
Head of the State Property Management Fund of the Kyrgyz Republic, Jyldyzbek Isakulov, said that in 2020, as part of the transition to digitalization, big changes in the field of digitalization and the transition to electronic format took place in the State Property Management Fund. “We have opened a new site where one can get complete information about the work of the fund, state property, confiscated, sold property, inventory work, etc. This is a very convenient platform where everyone can get all the necessary information,” he said.
Forecast of the National Bank. The National Bank of Kyrgyzstan predicts a decrease in the GDP of Kyrgyzstan at the end of 2020 at the level of 4% than the indicator for 2019.
The report of the National Bank says that, excluding the Kumtor enterprise, the decline in GDP in 2020 is expected to be 5%.
“Given the assumption that the trend towards a recovery in economic activity will develop, in 2021 the growth rate of real GDP is expected to be about 6.2%, and without Kumtor, GDP growth is expected to reach 6.7%,” the report said.
In addition, the National Bank of the Kyrgyz Republic reports that inflation in the Kyrgyz economy this year will reach a level near the upper limit of the target range of 5-7%.
GDP during a pandemic. The gross domestic product of the Kyrgyz Republic in January-May amounted to more than KGS 186 billion.
According to data of the National Statistics Committee of the Kyrgyz Republic, the indicator decreased by 4.8% compared to the previous year.
Excluding enterprises developing the Kumtor field, GDP amounted to about KGS 161 billion and decreased by 6.4%.
At the same time, the volume of industrial production amounted to about KGS 124 billion, a decrease makes 0.2%.
Negative trends were observed in construction, where volumes decreased by 7.4%, wholesale and retail trade - 13.8%. At the same time, in agriculture, on the contrary, there was an increase in volumes by 1.3%.
The poverty level in the Kyrgyz Republic. The poverty level in Kyrgyzstan in 2020, calculated by consumer spending, made 20.1%, which is 2.3% less than the previous year.
According to data of the National Statistics Committee of the Kyrgyz Republic, the poverty level in urban settlements decreased by 5.4%, and in rural areas - by 0.5%.
The value of the general poverty line was KGS 32 thousand 981 per year per capita, extreme poverty - KGS 17 thousand 706. 1 million 313 thousand people lived below the poverty line, of which 73.8% were residents of rural settlements.
Profit from gold. According to the results of 2019, the net profit of Kyrgyzaltyn OJSC amounted to KGS 310.5 million, which is 3.5 times higher than the profit for the same period of 2018.
According to data of the company, a net profit of KGS 850 million is planned for 2020.
Kyrgyzaltyn retained the position of one of the country's largest taxpayers in 2019. The sum of taxes and deductions according to the results of 2019 amounted to almost KGS 205 million.
Who will benefit? This week, the Kyrgyz Government announced that soft loans will be issued to financial and credit institutions strictly on the terms approved by the Government.
Vice Prime Minister of the Kyrgyz Republic Erkin Arsnadiev said that by the end of 2020 it is planned to issue about KGS 14 billion.
Such loans can be obtained by industries focused on production and processing, export-oriented enterprises, as well as companies related to food security, the production of medical devices and personal protective equipment, the tourism sector, the service sector, and retail trade. In addition, Asrandiev noted that as part of the digitalization of the tax system, those who switch to online cash register will receive preferential loans.
“All loans will be issued in national currency at 6-10% per annum, in microcredit companies - at 14%. Dates from 3 to 5 years, holidays will be 12-18 months,” he said.
A bit about public debt. The Kyrgyz government said this week that work on debt restructuring in Kyrgyzstan is ongoing.
According to Vice Prime Minister of the Kyrgyz Republic, Erkin Asrandiev, there are two types of external debt: bilateral, which are taken from another country on the basis of bilateral agreements, and multilateral, which are taken from international organizations. “Today, on bilateral debts, members of the G20 Paris Club initiated to move payments, which were due during 2020, for several countries to the next 3 years. As part of this initiative, the Ministry of Foreign Affairs of the Kyrgyz Republic and the Ministry of Finance of the Kyrgyz Republic carried out relevant work and an appeal was sent in May,” he said.
“We think that soon other countries will make the right decision and the payment of bilateral debts this year will be moved to next years. In addition, we generally sent appeals to our bilateral and multilateral lenders. This work is ongoing and it is worth noting that it requires a certain amount of time, and the result will be known somewhere in the 3-4th quarter,” Asrandiev said.
At the same time, the loss of the budget of Kyrgyzstan for 5 months of 2020 due to the CJVID-19 pandemic amounted to KGS 14 billion.
Asrandiev said that KGS 6.4 billion were not received from taxes.
“KGS 7.7 billion soms were not received from customs payments. In total, the amount made KGS 14 billion,” he said.
Loans for agricultural projects. In the framework of the Financing of Agriculture - 8Project, soft loans worth over KGS 2.8 billion were issued.
According to the State Agency for Budget Loans Management under the Ministry of Finance of the Kyrgyz Republic, as of June 5, 2020, 5 thousand 547 soft loans were granted to rural producers through commercial banks under the project Financing of Agriculture - 8.
The total amount of soft loans granted amounted to 2 billion 824 million 856 thousand soms.
Kabar News Agency
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