Business activity in the country is almost completely frozen due to the coronavirus. As a result of this, the events of the business week were associated only with decisions of state bodies, the government itself, as well as international organizations. In particular, the National Bank of the Kyrgyz Republic took new steps to stabilize the foreign exchange market in the country due to new intervention, and also announced the discount rate of the bank. RKDF announced a second package of anti-crisis measures, Korea allocated funds to the Kyrgyz Republic to combat the epidemic, and the Social Fund announced how pensions would be paid in this difficult time for the country.
The growth of dollar. This week in Kyrgyzstan, the national currency twice lost value.
At the beginning of the spread of the epidemic and due to external influence on the country's foreign exchange market, the dollar exchange rate sharply increased from KGS 73 to KGS 85. After the intervention by the National Bank, the rate fell to KGS 78.
The dollar again rose in Kyrgyzstan at the end of the week, when the American currency has risen in price to 1 som and reached the mark of KGS 83.
The discount rate of the National Bank of the Kyrgyz Republic is set at KGS 82.2 per dollar.
The bank discount rate is the same. This week, the National Bank of Kyrgyzstan announced the preservation of the discount rate at 5%.
The National Bank of the Kyrgyz Republic noted that the spread of the COVID-19 pandemic in the world and a sharp decline in world oil prices have significantly changed the situation in the external environment since the beginning of March 2020. There is a slowdown in the global economy, high volatility of world prices in the commodity and financial markets and a weakening of the currencies of the countries that are the main trading partners.
The impact of external economic conditions along with the closure of borders led to certain restrictions on economic activity in the Kyrgyz Republic. Against this background, the moderate growth of the Kyrgyz Republic's GDP, which was observed at 4.3 percent during January-February 2020, can be replaced by a decrease in economic activity in the coming quarters.
RKDF package of measures. The Russian-Kyrgyz Development Fund approved this week the second package of anti-crisis measures to support entrepreneurship in the country.
Given the current situation in the economy of the Kyrgyz Republic caused by the partial closure of state borders, limited movement of citizens, as well as volatility in the foreign exchange market, on March 30, 2020 the board of the Russian-Kyrgyz Development Fund approved the second package of anti-crisis measures for small and medium-sized businesses (SMEs) who received financing from the Fund.
The emergency package includes the following:
• Providing a deferral of repayment of the principal debt with a simultaneous extension of the loan term by 3 months.
• A moratorium on interest paid in US dollars for a period of three months.
• The softening of collateral requirements for commercial banks was carried out.
• Such changes in loan repayment schedules will not be recognized as restructuring due to a significant change in market conditions.
Support from Korea. This week, it was announced that Korea will transfer USD 50,000 to Kyrgyzstan to fight against coronavirus.
According to the Korean Embassy in the Kyrgyz Republic, the Korean government is urgently allocating funds to Kyrgyzstan through the Korean International Cooperation Agency (KOICA).
“In connection with the increase in cases of coronavirus infection in the Kyrgyz Republic, the Government of the Republic of Korea, recognizing the inadequacy of medical equipment and the need to improve medical services to combat coronavirus in the Kyrgyz Republic, decided to provide emergency assistance through KOICA,” the report said.
USD 50 thousand will be used to purchase personal protective equipment - 600 pieces of disposable protective overalls, 1000 pieces of disposable masks, 500 pieces of N95 respiratory masks, medical glasses, gloves, bathrobes, etc.
Prolongation. By a decree of the Government of Kyrgyzstan dated March 30, 2020, the deadlines for the implementation of a number of projects within the framework of fiscalization of tax procedures were extended until July 1, 2020.
This means that the mandatory use of electronic invoices by VAT payers, importers and exporters of goods has been extended until July 1 of the current year. Before this deadline, a pilot project on the use of electronic invoices will be implemented, which was launched on July 1, 2019.
The pilot (experimental) project on the use of virtual cash registers with a real-time data transfer function has also been extended until July 1 of this year.
Social payments will be on time. Pension in Kyrgyzstan will be fully paid.
Chairman of the Social Fund of the Kyrgyz Republic Meder Irsaliev said that they received a lot of questions about how pensions will be paid.
“Today, there are more than 670 thousand pensioners in the country, 55% of them receive it through various banks, 45% through the post office,” he said. He stated that all pension payments will be issued.
“On April 9, we will completely transfer the money for the payment of pensions to banks and the postal service. The total monthly amount of pensions is almost KGS 4 billion. Also, from April 10, the pension will be taken home,”he said.
Kabar News Agency
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