This week has been under the onslaught of the coronavirus pandemic that swept the entire world. The government has taken measures of restrictions and at the end of the week introduced an emergency stituation in the country. At the same time, government agencies began to take measures to support businessmen, facilitate loan payments, ensure stability in the foreign exchange market and stability in the food market.
State regulation of prices for 11 types of products. This week, due to registration of coronavirus infection in Kyrgyzstan the Kyrgyz Government adopted a resolution “On the introduction of temporary state regulation of prices for certain types of especially important goods” dated March 13, 2020 for the following food products included in the list of most important goods:
1. Wheat flour, rye
2. Bread (shaped)
3. Pasteurized milk 2.5-3.2% fat
4. Vegetable oil (sunflower and cotton)
5. Butter
6. Meat (beef, lamb, pork, poultry)
7. Sugar
8. Rice
9. Pasta
10. Chicken eggs
11. Potato
Funds for the repayment of public debt. Kyrgyzstan has announced the amount of funds that were allocated from the state budget to repay the state debt of In January-February 2020. KGS 5 billion 362 million were allocated for servicing the public debt (both external and internal).
Of these, KGS 1 billion 655.5 million for repayment of external debt, and for repayment of domestic debt - KGS 3 billion 706.5 million.
In 2020, Kyrgyzstan plans to allocate KGS 28 billion 818.8 million for servicing the public debt.
Among them, KGS 16 billion 163.33 million for external debt and KGS 12 billion 655.5 million for servicing domestic debt.
Call center of the Ministry of Economy. To quickly respond to the questions of business entities, a call center was created at the Ministry of Economy of the Kyrgyz Republic.
The decision was made in connection with the risks of negative economic consequences in the republic, including problems in carrying out entrepreneurial activities related to the outbreak of coronavirus infection COVID-19 in the world.
Also one can send questions by e-mail: info@mineconom.gov.kg.
The National Bank of Kyrgyzstan recommended the commercial banks to defer payment on loans. The National Bank of the Kyrgyz Republic recommends deferral of payments of loans for at least three months due to the aggravation of the situation in the country and in the world due to the coronavirus epidemic.
The National Bank of the Kyrgyz Republic took a number of measures to support business entities in connection with the spread of COVID-19.
It is reported that the spread of COVID-19 and the measures taken by countries to combat coronavirus infection have a negative impact on economic activity in certain sectors of the economy. Accordingly, given the global nature of the problem, it is necessary to take measures to support individual business entities and maintain maximum stability in the country's banking and financial systems.
Social allowances will be paid on time. It was announced that there should be no problems with the payment of allowances, pensions and salaries in Kyrgyzstan, since there are enough resources.
Prime Minister Mukhammedkalyi Abylgaziev, said in the country's parliament, social benefits will be paid on time.
“We will also move the deadlines for submitting tax returns. Until the end of March, the government will consider a schedule of development projects and capital investments. In my opinion, it is necessary to amend the budget law,” the prime minister said.
Coronavirus and the economy of Kyrgyzstan. The Kyrgyz Government believes that the approximate damage from the coronavirus may amount to USD 450 million.
Prime Minister Mukhammedkalyi Abylgaziev told this data during a parliamentary meeting.
According to him, this includes shortfalls in taxes, customs and damage to business.
“It is also predicted that GDP growth may be even less than 2%. But now we are taking measures, an anti-crisis plan, which envisages measures to resume business, etc.,” the prime minister said.
Antivirus account. An account has been opened in Kyrgyzstan in order to transfer funds for measures to prevent the spread of coronavirus infection in the Kyrgyz Republic.
In pursuance of the order of the Government of the Kyrgyz Republic dated March 10, 2020 No. 76-r, an account has been opened for the Ministry of Health of the Kyrgyz Republic in order to transfer funds for measures to prevent the spread of coronavirus infection in the Kyrgyz Republic, by the Central Treasury of the Ministry of Finance of the Kyrgyz Republic.
Facilitation to businessmen. It has been announced that support will be provided to affected entrepreneurs in the country due to the situation with the coronavirus infection COVID-19.
Head of the National Bank of Kyrgyzstan Tolkunbek Abdygulov told that this week a meeting was held with the heads of commercial banks on providing support to entrepreneurs who have suffered from the situation with coronavirus.
In particular, the owners of restaurants, cafes, computer clubs, etc., which are closed for quarantine.
“They will be given a deferment in payments of loans, non-accrual of penalties, etc.,” he explained.
At the same time, Abdygulov said that support to borrowers of a dollar loan would not be provided.
He said that in 2014-2015, when the national currency collapsed due to falling oil prices, the Kyrgyz government supported the conversion of borrowers who took a mortgage in dollars.
“The level of dedollarization is low today. Compared to 2015, the de-dollarization of mortgage loans decreased from 65% to 38%, loans - from 55% to 35%. Together with the government, we recommended to take loans in the currency in which economic activity is conducted. There is always a course and volatility,” he said.
Revision of loan repayments. Loan payment schedule will be revised of those citizens, who suffer due to the situation of COVID-19 coronavirus infection, who are dismissed or sent on unpaid leave.
Chairman of the National Bank of Kyrgyzstan Tolkunbek Abdygulov said that if a person was sent on vacation, fired, etc., then upon provision of confirming documents, the term for payment of the loan will be reviewed. Also, no penalties and fines will be charged.
Support measures. A round table was held at the Ministry of Economy with representatives of the business community and government bodies to discuss measures aimed at supporting the business environment and reducing the negative economic consequences of the spread of coronavirus.
It was announced that the Government adopted the following decisions:
- Amendments were made to the project “Financing of Agriculture - 8”, where enterprises involved in processing grain and food wheat and enterprises in the food and processing industry were included for preferential financing.
- a resolution was adopted “On the introduction of temporary state regulation of prices for certain types of socially significant goods”;
- The list of socially significant goods for which temporary state regulation of prices on the domestic market of the Kyrgyz Republic can be introduced has been expanded;
- The List of medicines and medical products exempted from VAT on delivery and import into the territory of the Republic was approved. According to this document, a number of medicines demanded in the fight against coronavirus are exempt from VAT.
Completed projects. The National Development Strategy of the Kyrgyz Republic for 2018-2040 provides for 155 national investment projects in regions.
According to the results of 2019, out of the total number of regional projects, 19 projects were completed (13.3% of the total), in the implementation process - 33 (23.2%), preparatory work - 69 (48.5%).
In 2018 - 2019, out of 155 national investment projects, 21 projects were completed for a total of USD 390.6 million.
Kabar News Agency
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