Kyrgyz Republic

No amount/estimate: 26 January 2021, The NBKR has kept its policy rate unchanged at 5% since 25 August 2020. 4 February 2021, The NBKR increased its policy rate to 5.5%. 27 April 2021, The NBKR increased its policy rate to 6.5%. 27 July 2021, The NBKR increased its policy rate to 7.5%.

No amount/estimate: April 2020, The NBKR will postpone enactment of several financial regulations until further notice. In addition, it made the following decisions: (i) banks and Nonbank Financial Institutions (NBFIs) should create a loan loss reserve equal to 100% for the amount of overdue accrued interest payments on loans that have been given the status of non-accrual of interest income when overdue arrears are 270 days or more (from the now 90 days), (ii) in the event of arrears arising from COVID-19, banks or NBFIs have the right not to worsen the classification category due to financial condition of the borrower, and (iii) risk-weights of FX corporate and retail loans will be reduced from 150% to 100%.

No amount/estimate: 15 September 2020, The Government of the Kyrgyz Republic has exempted from VAT a number of imported goods used in the fight against coronavirus. The decision is valid from 1 August to 31 December 2020.

(i) 30 April 2020, USD1.02 million is the estimated support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases. As of 8 October 2021, the estimated support increased to USD1.25 million; (ii) 4 May 2020, USD50 million under the COVID-19 Active Response and Expenditure Support Program; (iii) 3 June 2020, USD0.07 million under the Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (additional financing); (iv) 5 June 2020, USD0.10 million under the Preparing the Promoting Economic Diversification Program (additional financing); (v) 16 June 2020, USD20 million under COVID-19 Pandemic Emergency Project; (v) 13 July 2020, USD0.38 million under the Addressing Health Threats in the Central, West and East Asia Region Project; (vi) 24 July 2020, USD0.21 million under the Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3). As of 25 October 2020, the project amounted to USD0.21 million; (vii) 18 November 2020, USD0.05 million under Supporting Startup Ecosystem in the Central Asia Regional Economic Cooperation Region to Mitigate Impact of COVID-19 and Support Economic Revival Project; (viii) 26 November 2020, USD0.04 million under Addressing Health Threats in the Central, West and East Asia Region (Additional Financing) Project; (ix) 9 December 2020, USD0.20 million under Preparing the Promoting Economic Diversification Program; (x) 7 September 2021, USD0.16 million under Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 4); (xi) 22 September 2021, USD0.06 million under Fostering Regional Cooperation and Integration through Knowledge and Capacity Building of Trade and Supply Chain Finance Program Banks; (xii) 23 September 2021, USD80 million Promoting the Economic Diversification Program, Subprogram 2; (xiii) 28 October 2021, USD25 million under the COVID-19 Vaccine Support Project under the Asia Pacific Vaccine Access Facility [update].

(i) 26 March 2020, The Executive Board of the International Monetary Fund (IMF) approved a purchase of the Kyrgyz Republic under the Rapid Financing Instrument (RFI) equivalent to SDR59.2 million (USD80.6 million at today’s USD/SDR exchange rate, 33% of quota) and a disbursement under the Rapid Credit Facility (RCF) equivalent to SDR29.6 million (USD40.3 million at today’s USD/SDR exchange rate, 17% of quota) to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic; (ii) 2 April 2020, The World Bank’s Board of Directors approved USD12.15 million from the International Development Association (IDA) for the Kyrgyz Republic Emergency COVID-19 Project. In addition, USD9 million dollars of financing from an on-going World Bank project will be reallocated to support the country’s efforts to prepare for and respond effectively to the health and social risks associated with the global COVID-19 pandemic; (iii) 28 April 2020, The European Union provided assistance in the form of grants amounting to more than EUR36 million; (iv) 8 May 2020, The Executive Board of the International Monetary Fund approved a purchase of the Kyrgyz Republic under the Rapid Financing Instrument equivalent to SDR59.2 million (USD80.7 million, 33% of quota) and a disbursement under the Rapid Credit Facility equivalent to SDR29.6 million (USD40.4 million, 17% of quota) to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic; (v) May 2020, USD1 million under the United Nations (UN) COVID-19 Response and Recovery Multi-Partner Trust Fund (COVID-19 MPTF); (vi) The Islamic Development Bank (IsDB) provided USD15 million under Emergency Support for Building COVID-19 pandemic preparedness and response capacity in the Kyrgyz Republic; (vii) 20 May 2020, The United States through the US Agency for International Development will provide health assistance amounting to approximately USD0.9 million; (viii) As of 18 June 2020, the German Development Bank KfW agreed to redirect USD30 million to ensure food security in the country; (ix) 14 July 2020, The Government of the Kyrgyz Republic and the Government of Japan signed Exchange Notes under the "Program of Socio-Economic Development" within the framework of gratuitous assistance in the amount of USD4.6 million; (x) 30 July 2020, The World Bank’s Board of Executive Directors approved financing for three projects in the Kyrgyz Republic aimed at helping mitigate the unprecedented health, economic, and social challenges caused by the COVID-19 pandemic. The financing to Emergency Support for Micro, Small and Medium Enterprises (USD50 million); Social Protection Emergency Response and Delivery Systems (USD50 million); and CASA-1000 Community Support Project (COVID-19) Additional Financing (USD21 million) will be provided on highly concessional terms through the International Development Association (IDA). Half of the funding in each project will be allocated in the form of a grant, which requires no repayment, while the other half is a credit with a 0.75% administrative fee, with repayments spread out over 38 years, and a six-year grace period; (xi) As of 12 August 2020, the Eurasian Fund for Stabilization and Development (EFSD) approved a loan to the Kyrgyz Republic in the amount of USD100 million; (xii) 12 August 2020, Another USD50 million under the Emergency Support for Micro, Small and Medium Enterprises (World Bank as the lead co-financier) is to be co-financed by the Asian Infrastructure Investment Bank (AIIB); (xiii) In September 2020, the World Health Organization (WHO) donated 1,000 PCR test systems to the Ministry of Health. The total cost of humanitarian aid is USD1 million; (xiv) 19 October 2020, The WHO handed over medical masks to the Ministry of Health. The total cost of humanitarian aid is about USD460 thousand; (xv) No amount/estimate: 10 April 2021, The National Disaster Management Authority of Pakistan handed over humanitarian aid in the form of N95 medical masks, protective suits, and shields for the needs of the Kyrgyz Republic to fight against coronavirus infection; (xvi) No amount/estimate: 26 April 2021, The Global Alliance for Vaccination and Immunization (GAVI) provided eight refrigerated trucks to transport vaccines (purchased through the UNICEF Procurement Services in accordance with UNICEF regulations); (xvii) 12 October 2021, The Executive Board of the International Monetary Fund (IMF) approved a decision on 6 October 2021 to write off debts under the Disaster Containment and Relief Fund (CCRT) for 24 low-income member countries, including the Kyrgyz Republic. Thus, the Kyrgyz Republic will reduce its debt by SDR8.8 million or USD12.6 million to the IMF for the period from 8 October 2021 to 10 January 2022.