This week, the business resumed in the republic, although most are still under quarantine. However, the Government is taking measures to ease the situation. In particular, the RKDF developed a new loan product for farmers, and the Tax Service announced that it did not apply sanctions against taxpayers. Meanwhile, the American currency lost ground and became significantly cheaper, the Government began work on attracting internal reserves to replenish the state budget, and also announced that the country's final budget was approved and also proposed to legalize the ban on the export of fuel from the country. In general, the week gave some impetus to the revitalization of the country's business community in the face of a pandemic in the world.
New product of RKDF. The Russian-Kyrgyz Development Fund (RKDF) has developed a profitable loan product for agricultural development.
During the COVID-19 pandemic, the RKDF continues to take measures to support the economy in order to minimize the impact of crisis on business.
As part of the preparation and initialization of cluster development in various sectors of the Kyrgyz economy, the RKDF has developed new loan products based on the cluster approach in the following areas:
• development of dairy production;
• development of meat production;
• development of aquaculture.
In fact, the entire production chain is covered for each of these areas.
The benefits of the new cluster products are:
• long grace period for repayment of the principal amount of the debt - up to 36 months;
• low interest rates;
• longer loan terms depending on the goals - from 5 to 7-10 years;
• more favorable conditions for collateral;
• the possibility of replenishing working capital for the purchase of raw materials (including biological raw materials), feed, spare parts, materials, veterinary medicines, vitamins, other materials and services within the framework of the investment project;
• in exceptional cases, may include a refinancing component.
Interest of Japan. Ambassador of Kyrgyzstan to Japan Mirlan Arstanbaev held a meeting with director of Kyushukougyo Hironobu Matsuzaki.
According to the press service of the Ministry of Foreign Affairs of the Kyrgyz Republic, during the meeting, the sides discussed the prospects for cooperation in the construction industry. The company has advanced experience in the construction of high-quality infrastructure (bridges, roads, etc.).
The company representatives expressed interest in implementing infrastructure projects in the Kyrgyz Republic.
There will be no sanctions. The State Tax Service of the Kyrgyz Republic has optimized the information system in terms of not automatically applying the tax sanction in the card of the personal account of the taxpayer and penalties for late fulfillment of tax obligations as a result of force majeure circumstances for the tax periods from March to June 2020 from April 1, 2020.
The information system of the State Tax Service is optimized as part of the implementation of the Law of the Kyrgyz Republic “On Amending Certain Legislative Acts on the Stabilization of the Socio-Economic Situation in Connection with Force Majeure”.
In accordance with this law, tax sanctions and penalties are not applied for untimely fulfillment of tax obligations by a taxpayer.
Kyrgyz Som is getting stronger. This week, for the first time since the announcement of an emergency situation in Kyrgyzstan, the US dollar fell in price. American currency in commercial banks and exchanges is sold for 74-75 soms.
On May 21, the nominal rate of the National Bank of the Kyrgyz Republic amounted to 75.6 soms per dollar, the dollar fell by 1-2 soms.
In March, the US dollar rate rose sharply from 69.9 soms to 83 soms. This was due to falling oil prices and the coronavirus pandemic. Gradually, som rate rose. And today it is 74 soms per dollar.
Competition for labeling. The State Tax Service announced this week a tender to select the operator (administrator) of the national labeling and traceability system for labeled goods in Kyrgyzstan.
The competition is held in accordance with the Decree of the Government of the Kyrgyz Republic “On approval of the Provisional Regulation on the selection of the operator (administrator) of the national system for labeling and traceability of marked goods in the Kyrgyz Republic” dated May 11, 2020 No. 248.
Search for reserves. It has been announced that the Government of Kyrgyzstan will increase rates on mines and concentrates of mining companies to reduce the budget deficit.
Vice Prime Minister of the Kyrgyz Republic, Erkin Asrandiyev, said that taking into account the latest approved adjustment, the budget deficit remains unchanged.
“We are attracting external assistance for this. But we are not limited only by external help, we are also seeking internal reserves,” he said.
Asrandiev said that a bill has been developed to increase the rate on ore and concentrates for mining companies. A draft law has also been developed on the creation of a tax base on the collection of mining taxes; excise taxes on the import of certain oil-containing products are being introduced.
The final budget. This week, the Kyrgyz government announced the final changes to the new budget.
Vice Prime Minister Erkin Asrandiev said that, taking into account the recommendations of the Accounts Chamber and parliamentary deputies, amendments were made to the previously proposed draft budget.
In particular, he noted that according to this document, the plan for the budget revenues was increased by 2.2 billion soms than was proposed in the previous version.
Ban on export of fuel and lubricants. The Ministry of Economy of the Kyrgyz Republic this week submitted for public discussion a draft Decree of the Government of the Kyrgyz Republic “On the introduction of a temporary ban on the export of petroleum products from the Kyrgyz Republic”.
The purpose of the adoption of the project is to meet the needs of the population of the Kyrgyz Republic in petroleum products by introducing a ban on the export of petroleum products.
Kyrgyzstan, thanks to significant investments in the oil industry, is increasing oil production and production capacity of oil refineries.
However, despite the increase in crude oil production and production of petroleum products, the Kyrgyz Republic does not fully cover the needs of the population for petroleum products. The population’s demand for petroleum products is provided through imports.
In 2019, the volume of gasoline imports amounted to 655 thousand tons, diesel fuel 423 thousand tons, which is about 80-90% of the population’s demand for oil products.
Kabar News Agency
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