This week it turned out that more people received loans over the past year than a year earlier. However, the continuation of the rise in prices as a whole forced to take an inventory of the relevant laws, and oil traders predict a further rise in prices for fuels and lubricants, but the government agencies called on to provide the necessary conditions and transparent work for entrepreneurs.
In general, the week turned out to be quite active, provoking a violent reaction to the issue of protecting the rights of entrepreneurs and their work.
Loans. In 2020, microcredit organizations issued loans in the amount of KGS 31.1 billion, while the number of recipients amounted to about 707 thousand people.
Compared to the previous year, the population covered by microcrediting increased by 13.2%, and the volume of issued microcredits - by 3.2%.
Of the total volume of microcredits issued in 2020, 33.6% was directed to the development of activities in agriculture, 28.2% was borrowed for consumer needs, 10.4% - in trade and public catering, and 8.1% - in construction.
Keep prices down. As part of the containment of prices for socially important goods, the antimonopoly body of Kyrgyzstan has taken a number of preventive measures.
In addition to large-scale explanatory work in the media, among sellers of markets and retail chains, food suppliers, analytical work is also carried out, including studying the experience of other countries and the possibility of its application in the country.
Based on the analysis of the current situation in the markets of socially significant goods, weekly analytical information with developed proposals is sent both to the government of the Kyrgyz Republic and to authorized bodies, including the authorized body for food safety (Ministry of Agriculture), and to local authorities, for prompt and timely taking decisions within their competence and existing powers.
Sugar price. Prices for granulated sugar in March 2021 in the republic on average amounted to KGS 64.36 and, compared to December last year, increased by KGS 10.14, or almost 19%.
According to data of the National Statistics Committee of the Kyrgyz Republic, the largest increase in prices for granulated sugar compared to the previous month of this year was recorded in the city of Nookat - by 18.8%, in the village of Pokrovka - by 13.2%, as well as in the cities of Batken and Kara-Balta - by 9.7%.
Inventory of laws. This week, all ministries have been tasked with taking an inventory of business laws for controversy.
Head of the Department of Strategic Development Policy, Economics and Finance of the Office of the President of Kyrgyzstan Iskander Gaipkulov told at a meeting on the implementation of the Decrees of the President of the Kyrgyz Republic "On the protection of property and support for entrepreneurs and investors" and "On additional measures to protect business entities".
“All laws that you yourself use must undergo an inventory and, by April 10, must provide draft laws that have contradictions. All ministries must submit their proposals for changing the laws by April 10,” the official said.
About new laws. The Ministry of Economy and Finance has developed a Plan for the Implementation of the Decrees of the President of the Kyrgyz Republic "On the protection of property and support for entrepreneurs and investors" and "On additional measures to protect business entities".
First Deputy Minister of Economy and Finance of Kyrgyzstan Daniar Imanaliev said that the tasks of these decrees are to stop the unjustified interference of law enforcement, fiscal and regulatory bodies in the activities of business entities, obstruction of entrepreneurial activity and violation of the legal rights of owners, including due to non-fulfillment and inability to fulfill contractual obligations.
“2020 has been a challenging year for humanity. The pandemic has had a profound impact on the economies of all countries in the world. The global economy has faced such a big blow. Kyrgyzstan's GDP decreased by 8.9%. Such indicators were for the first time in 25 years. External trade also decreased several times. The real income of the population has decreased significantly, and this is not only here, but all over the world. The business of the entire world has suffered great losses. And presidential decrees are designed to protect and support entrepreneurs, protect businesses and investments. Because now we notice that the business is leaving. Within the framework of the presidential decree, it becomes possible to restore business, ensure the protection of the rights and interests of entrepreneurs, ensure immunity and activate business,” he said.
Currency support. The National Bank of Kyrgyzstan carried out another intervention this week, selling USD 50.2 million.
This is the fifth intervention of the National Bank in 2021, with a total of USD 206.2 million sold.
Gasoline rises in price. This week, the Association of Oil Traders of Kyrgyzstan once again made a forecast for the growth of prices for fuels and lubricants by 6-9%.
The global increase in oil prices, according to data as of April 2, 2021, the price of Brent crude is about USD 65 per barrel. In addition, according to the information available on the Russian oil product market, there is also an increase in wholesale selling prices for fuels and lubricants.
The association noted that an additional negative factor that provoked an increase in final prices at local gas stations was a significant devaluation of the som against the US dollar, since, according to global practice, the purchase of oil products from factories is carried out in international currency, and sales in Kyrgyzstan are in Kyrgyz soms.
Import of fuels and lubricants. Despite the rise in prices, oil traders of the republic continue to provide the republic with the necessary volumes of fuel and lubricants without interruption.
According to data of the Association of Oil Traders of Kyrgyzstan, in January-March 2021, a total of 327.5 thousand tons of oil products were imported to the republic, of which gasoline - 182 thousand tons, diesel fuel - 145.5 thousand tons, turbojet engine - 10, 3 thousand tons.
At the moment, oil traders fully cover the needs of the republic in fuels and lubricants, thereby realizing their main task of providing Kyrgyzstan with petroleum products, while avoiding any deficit.
The main source of fuel supplies to the republic is the Russian Federation. Thanks to the agreement reached between Kyrgyzstan and Russia, the supply of oil products is exempted from export duties. This form of support from the Russian side allows consumers of Kyrgyzstan to save significant amounts: for the first quarter of 2021, the savings in duties amounted to USD 4.2 million.
Discussing the Decree on Protection. This week, during a meeting with the participation of a wide range of representatives of the business community of Kyrgyzstan, heads of law enforcement and regulatory bodies of the Kyrgyz Republic, the first deputy. Minister of Economy and Finance of the country Damiar Imanaliev presented information on the work carried out to implement the decrees of the President of the Kyrgyz Republic aimed at protecting and supporting business entities.
Imanaliev drew attention to a sharp decline in economic growth rates, so “by the end of 2020, economic growth in the country decreased by 8.6%. This is the first drop in GDP in 25 years,” he said.
In addition, foreign trade turnover decreased by 19.0% and returned to the level of 2015 (USD 5 billion 637 million).
“Taking into account these crisis conditions, in order to reduce the negative impact of the pandemic on the economy and support entrepreneurs, the Government of the Kyrgyz Republic adopted 5 action plans for 2021. 2 anti-crisis plans and 2 plans for economic recovery,” Imanaliev said.
At the same time, it was noted that despite the decisions made, some indicators of the investment and business climate worsened.
“Especially in recent years, pressure from law enforcement, tax and regulatory bodies on investors and entrepreneurs has increased,” he said.
“In 2020, the volume of foreign direct investment decreased by 55.6% and amounted to USD 477.6 million, compared to 2019, the outflow of direct investments increased by 20.1% and amounted to USD 808.1 million. As a result, the outflow of investments exceeded the inflow by 59.1%,” said the First Deputy Minister of Economy and Finance of the Kyrgyz Republic Daniar Imanaliev.
He also noted that the restoration of business activity in the business environment, the complete recovery of our economy is impossible without radical reforms. In this connection, in order to implement the decrees of the President of the Kyrgyz Republic, the Ministry has developed a draft action plan and submitted for approval by the relevant state bodies.
Kabar News Agency
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