All events of the economic week were mainly related to emergency situation announced in the country and a state of emergency in some areas, which significantly limits the business activity of entrepreneurs and businessmen. The introduced a state of emergency has a particularly strong effect in the cities of Bishkek and Osh, where most of the enterprises producing consumer goods are concentrated. In the current situation in the world, the entire world is already suffering from the coronavirus epidemic. According to various estimates, the budget gap for Kyrgyzstan in this regard ranges from USD 350 million to 450 million. That is why President Jeenbekov urgently appealed to international financial institutions to provide support to Kyrgyzstan. At the same time, enterprises providing the vital functions of the state and supplying essential goods for the population are operating stably.
The work of banks will be stable. In a state of emergency, the banking and payment systems operate in a manner that meets the requirements of the state of emergency by providing basic types of banking services and implementing payment and transfer operations.
The National Bank of the Kyrgyz Republic announced that it will continue to work on the timely and uninterrupted supply of the needs of the economy and the population in cash through commercial banks with the necessary denominations of banknotes and coins in full.
Kyrgyzstan’s payment system, including the Elcard national payment system, operates in the conditions of a state of emergency and provides the possibility of cashless payments. Payments will be carried out using various non-cash and remote payment tools (bank payment cards, e-wallets, the Elcard Mobile application, payments and transfers using QR codes, mobile banking, Internet banking, etc.).
IMF budget support. The International Monetary Fund reacted more quickly than all other financial institutions to the appeal of the Kyrgyz authorities and announced the allocation of almost USD 121 million to the country. The IMF loan will be aimed at supporting the country's budget.
Minister of Finance of the Kyrgyz Republic Baktygul Jeenbaeva said that the Executive Board of the International Monetary Fund approved the request of the Kyrgyz Republic under the Rapid Financing Instrument (RFI) equivalent to USD 80.6 million and USD 40.3 million under the Rapid Credit Facility (RCF). In total, this amount is about USD 120.9 million to meet the urgent balance of payment.
“This is the first IMF emergency loan to help with the outbreak of the COVID-19 pandemic. We were the first to get a loan, and we would like to thank the IMF team for this help, which responded very quickly to our request. It is worth paying attention to the fact that this loan is on favorable terms, and it will go to support the budget of our country. We all well understand that the outbreak of the pandemic weakened the macro- and microeconomic prospects of our country, showed a gap in the balance of payments. These gaps today are estimated at about USD 400 million,” she said.
The funds were allocated after the meeting of IMF Permanent Representative in the Kyrgyz Republic Tigran Poghosyan with President of Kyrgyzstan Sooronbay Jeenbekov in Bishkek.
Poghosyan said at the meeting that the Fund is considering various options for providing emergency support to countries that have suffered economic damage from the spread of coronavirus infection, within the framework of existing financing instruments.
“Kyrgyzstan was one of the first countries to send an application for emergency financing,” the IMF’s permanent representative in the Kyrgyz Republic said, and during the meeting he assured that in the coming days the IMF would quickly consider providing budget support to Kyrgyzstan.
Anti-crisis measures. Vice Prime Minister of the Kyrgyz Republic Erkin Asrandiev told this week an anti-crisis plan is currently being developed, which provides support for business and a reduction in the negative impact on the country's economy.
“The day before, a meeting was held with the participation of the prime minister and relevant ministries and departments, where we familiarized ourselves with the final stage of this plan. This anti-crisis plan includes issues related to loans, taxes and economical assistance. In the near future, maybe tomorrow, we will give official information. However, we will not be able to repeat the experience of other countries, for example, Russia, Europe or Kazakhstan, because they have the financial capabilities to support the economy. They have a budget and reserve funds that allows to cancel taxes for a while. We are looking at all this and we need to soberly assess our financial capabilities,” said Asrandiev.
These measures are aimed at organizing tax holidays for business representatives who suffer economic losses in the conditions of the introduced a state of emergency.
No delays in social payments. Currently, the Kyrgyz government makes all payments on salaries, allowances and pensions.
Minister of Finance of the Kyrgyz Republic Baktygul Jeenbaeva said that the outbreak of the pandemic weakened the macro- and microeconomic prospects of the country, showed a gap in the balance of payments, which is estimated at about USD 400 million.
“In the future, we will make every effort to fulfill obligations in a timely manner and in full,” she assured.
Prior to this, at a meeting of the Government of the Kyrgyz Republic, Prime Minister Abylgaziev estimated the potential budget deficit of 2020 in the amount of up to USD 450 million.
Centerra’s payment. Centerra Gold Inc. said its board of directors authorized a dividend for the first time since the second half of 2016 of four Canadian cents per share in the amount of 11.75 million Canadian dollars or 8.2 million US dollars at the current exchange rate.
Kyrgyzstan, as the owner of 77.4 million shares of Centerra Gold, should receive about 2.2 million US dollars.
This will be paid on April 22 to shareholders of record on April 8.
Centerra Gold officials said they will have to evaluate conditions when assessing future payments, including the impact of the COVID-19 pandemic on the company.
In accordance with Centerra Gold’s dividend policy, the time and amount of dividends must be determined by the bard of directors from time to time based on the results of operations, cash flows and financial conditions, current and expected capital requirements of Centerra Gold, general business conditions and other conditions.
Kabar News Agency
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