There were no particularly noticeable business events this week, although tax revenues on transport are growing, the number of new enterprises has grown since the beginning of the year, and the Government has once again reported on the received donor funds and issued soft loans. At the same time, although the volume of the country's GDP has decreased, as elsewhere, the average salary in the country has slightly increased.
Overall, the intensity of business events this week remained associated with the continued negative impact of the pandemic.
Electricity consumption. Electricity consumption in the energy system of Kyrgyzstan in August 2020 amounted to about 850 million kWh.
According to data of the National Electric Grid of Kyrgyzstan OJSC, in 2019 for the same period, consumption amounted to 876 million 263 thousand kWh. The decrease in consumption is associated with the influence on activity of consumers during pandemic, which has been lasting for the seventh month.
Guarantees. It was announced this week that for 8 months of 2020, the Guarantee Fund OJSC issued 1,83 guarantees, which is 120% more than during this period of 2019.
According to chairman of the Fund, Malik Abakirov, the total amount of guarantees issued for the past period amounted to over KGS 466 million, and the total amount of loans issued under the guarantees of the Fund reached KGS 2 billion.
“Since the beginning of its activity, the Fund has provided support to entrepreneurs by providing 2.7 thousand guarantees worth over KGS 2.1 billion. At the same time, the amount of loans issued against the provision of guarantees exceeded KGS 7.6 billion ” he said and stressed that 98% of the guarantees were provided for obtaining loans from entrepreneurs in the regions.
IPO. The first public offering of preferred shares of one of the domestic companies under the IPO system has started on the Kyrgyz Stock Exchange since Sept. 8, 2020.
An IPO (Initial Public Offering) is a public offering of a company's shares on the stock exchange, due to which a wide range of participants invest through the purchase of the company's shares, and the company becomes public.
The Salym Finance MFC OJSC has become the "pioneer" who decided to enter the stock market of the country with their preferred shares.
This is a landmark event for the stock market of the Kyrgyz Republic, for the first time IPO is held in accordance with all the conditions of this process.
New enterprises. This week it became known that 40 new enterprises for processing agricultural products were commissioned in Kyrgyzstan in January-August 2020.
The Ministry of Agriculture of the country reported that at the same time, 1 thousand 208 jobs were created.
The creation of new and the development of existing enterprises of the processing industry will be carried out taking into account the regional specialization of enterprises carried out by the government of the Kyrgyz Republic.
Money of donors. Kyrgyzstan has received USD 338 million of aid from various international financial institutions.
Vice Prime Minister of the country Erkin Asradiev said that USD 207 million have been spent and the rest USD 131 million are in the National Bank’s account.
The spend funds were sent to different agencies to fight the coronavirus infection, as well as for the purchase of grain, for social payments and wages, and to finance soft loans for business.
Preferential funds. Part of the funds of the external assistance is directed to economic recovery by financing business entities.
Erkin Asrandiev said that KGS 4.5 billion have already been allocated for concessional lending to entrepreneurs.
“Out of this amount, 5 thousand entrepreneurs received soft loans for a total of KGS 3.2 billion. Recently, on the recommendation of the business, changes were made to the financing program, namely, the terms of issuance were simplified, the industries were expanded. Today, concessional lending covers all sectors: services, manufacturing, agriculture and trade. 11 banks participate in this program, which cover all regions with branches,” Asrandiev said.
Average salary. In January-June 2020, the average monthly nominal wage (excluding small businesses) in Kyrgyzstan amounted to KGS 17,999 (about USD 221) and increased by 10.5% compared to January-June 2019.
According to data of the National Statistics Committee of the Kyrgyz Republic, the highest level of average monthly wages was observed among workers in the sphere of financial intermediation and insurance – KGS 36,028 soms (USD 456), information and communication – KGS 35,133 (USD 445) as well as mining – KGS 35,005 (USD 443).
The average monthly salary of art workers, entertainment and recreation workers is below the average level - KGS 9,829 (USD 124), health care and social services –KGS 10,750 (USD 136) and education – KGS 14,509 (USD 183).
Paid taxes. Citizens of Kyrgyzstan paid KGS 158.5 million within 10 days after the expiration of the payment of the tax on transport.
According to data of the Tax Service of the Kyrgyz Republic, since the beginning of the year, KGS 685.5 million of transport tax have been collected.
At the same time, despite the fact that the deadline for payment of the transport tax this year expired on Sept. 1, the administration of this tax continues.
In accordance with the law, car owners who did not pay the tax on time will have to pay the tax, an administrative fine and a penalty for each day of delay.
Gold site. An auction for the right to use subsoil at the Chyrpykty site (alluvial gold, geological exploration) was held this week in Naryn Oblast.
According to data of the State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic, at a starting price of USD 1 thousand 950, the right to use was won by Gold Content LLC, offering USD 3 thousand 200.
GDP declined. The country's GDP in January-August 2020 amounted to KGS 335.3 billion, having decreased by 5.9% compared to January-August last year.
According to data of the National Statistics Committee of Kyrgyzstan, excluding enterprises developing the Kumtor deposit, the volume of GDP was KGS 292.6 billion and compared with the corresponding period of last year decreased by 7.6%.
The decline in GDP growth rates was mainly due to a decrease in growth rates in construction and services. At the same time, the decrease in the growth rates of commodity production sectors compared to January-August last year amounted to 99.2% (in January-August 2019 - 110.8%), industries providing services - 90.2% (in January-August 2019 years - 102.5%).
Kabar News Agency
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