Kyrgyz finance minister about how much aid was received from donors and how much still expected

Bishkek, June 23, 2020 / Kabar /. The budget revenues due to the coronavirus pandemic did not work out as predicted at the beginning of the year, Minister of Finance of the Kyrgyz Republic Baktygul Zheenbaeva told at a briefing.

She said that due to the outbreak of coronavirus infection in the country there has been an economic downturn in all key sectors of the economy.

“There are also significant drops in tax and other income. In this regard, the ministry conducted work to attract external assistance, which was carried out in three directions - to support the budget, to fight against coronavirus and to support the economy. More than USD 291 million has already been received for budget support from the International Monetary Fund and the Asian Development Bank. At this time, the Asian Development Bank will consider the issue of additional financing through targeted lending based on an action policy or other lending to support Kyrgyzstan in 2020. In addition to this support, the Asian Development Bank will mobilize USD 20 million in emergency project assistance to help improve the country's potential to mitigate the health effects of the pandemic,” said Zheenbaeva.

She also said that the Agreement on receiving USD 12.15 million from the World Bank was signed, the relevant law on its ratification was adopted by the Jogorku Kenesh.

“Currently, tendering procedures for the procurement of medical supplies are underway. In addition, from the current project “Improving Resilience to Natural Disasters in Kyrgyzstan”, USD 9 million is being allocated to urgent purchases of medicines and equipment related to the global COVID-19 pandemic, of which USD 8.1 million has already been spent purchase of medical equipment. As a result, the World Bank currently provides assistance in the amount of USD 21 million,” the minister said.

In addition, the World Bank is preparing two projects totaling USD 100 million, which will go to support socially vulnerable segments of the population, as well as support for the country's private sector, she said.

“For the first time, Kyrgyzstan during the crisis associated with the spread of COVID-19 is consulting with the Asian Infrastructure Investment Bank to raise funds in the amount of USD 50.0 million to support the private sector. With the European Union, the issue of allocating about USD 33.9 million dollars is being worked out. The above amount may change in the process of discussing this issue by the leadership of the European Union. In the area of ​​economic support, in particular for the development of small and medium-sized businesses, the German Development Bank KfW agreed to redirect USD 30 million to ensure food security in the country,” added Zheenbaeva.