Central and West Asia
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||KZT1,750,000,000,000||USD4,244,996,968|
|01A - Short-term lending info_outline||KZT1,750,000,000,000||USD4,244,996,968||
(i) KZT1 trillion in subsidized lending under the “Economy of Simple Things” program. (ii) KZT600 billion to help small and medium-sized enterprises (SMEs) finance their working capital; (iii) May 14, KZT50 billion in loans to farmers through National Holding Kazagro and KZT100 billion through the “Economy of Common Goods” program.
|01B - Support policies for short-term lending info_outline||
No amount/estimate: As of June 10, Reduced liquidity coverage ratio requirement (from 80% to 60%).
|01C - Forex operations info_outline||
(i) No amount/estimate: The National Bank (NBK) allowed the tenge to depreciate by over 15% to almost 450 KZT/USD from March 9, intervening to mitigate excessive volatility. It also introduced a limit on bid-ask spread and lowered the ceiling of FX purchase without supporting import documents for the duration of the state of emergency. The exchange rate has recovered to around 430 KZT/USD, but remains vulnerable to oil price volatility; (ii) No amount/estimate: July 2, The President of Kazakhstan has assigned the objective to stabilise the exchange rate to the NBK on 2 July.
|02 - Credit creation info_outline|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline||
(i) No amount/estimate: (a) March 10, The National Bank raised its policy rate from 9.25% to 12% and widened the interest rate corridor from 100 to 150 bps, after pressures on the tenge (KZT) intensified with the drop of oil prices. The NBK cut the base rate to 9.5% and further widened the corridor to +/-200 bps in early April to stimulate economic growth; and (b) To encourage lending, the authorities have also lowered risk weights for SME exposure in tenge (from 75% to 50%) and for FX loans (from 200% to 100%) until October; (ii) No amount/estimate: As of May 20, interest on subsidized credit from the "Economy of Simple Things" program is being cut from 13-15% to 6%; (iii) July 20, The NBK cut the base rate by another 50bps to 9%, and narrowed the corridor to +/- 150 bps.
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline||KZT360,000,000,000||USD873,256,519|
|03A - Long-term lending info_outline|
|03B - Forbearance||KZT360,000,000,000||USD873,256,519||
(i) No amount/estimate: Banks have been requested to allow loan repayments deferrals until mid-June and refrain from charging penalties for borrowers affected by the emergency; and (ii) April 27, More than 1.6 million citizens and 11,000 SMEs received deferral on loan payments in the amount of KZT360 billion.
|04 - Equity support info_outline|
|05 - Government support to income/revenue||KZT7,700,000,000,000||USD18,677,986,659||
(i) The President announced a significant anti-crisis package now totaling KZT 5.9 trillion. The anti-crisis package includes cash payments to the unemployed (USD95 per month per person), a 10% increase in pension and social benefits, and additional spending to strengthen the health sector (As of May 20: (a) KZT14.8 billion for the construction of three quarantine modular complexes in Nur-Sultan, Shymkent and Almaty; (b) KZT40.6 billion for incentive measures for healthcare workers participating in quarantine activities; (iii) KZT19.5 billion for health organizations treating coronavirus patients; (c) KZT8 billion in salaries will be paid to doctors, police officers and other specialists) and support employment and business; (ii) An additional KZT1.8 trillion will be allocated to support employment under an “Employment Roadmap” program; and (iii) No amount/estimate: SMEs and individual entrepreneurs are also eligible for new tax incentives; (iv) No amount/estimate: May 14, VAT rate has been reduced from 12% to 8% until 1 October 2020 with the exception of food and drugstores, transportation services, consulting services and information technology.
|05A - Health|
|05B - Non-health||
(i) No amount/estimate: May 20, residents in Almaty can defer utility payments for March and April until the end of 2020 with no fines or penalty. Reimbursement of utilities expenses for April and May in amount of KZT15,000 will also be provided for socially vulnerable groups; (ii) No amount/estimate: July, The government announced a new round of income support payments of KZT42,500 to certain categories of the population.
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||KZT728,618,895,000||USD1,767,420,000|
|08A - Swaps info_outline|
|08B - International loans/grants||KZT728,618,895,000||USD1,767,420,000|
|08B1 - Asian Development Bank||KZT414,030,920,000||USD1,004,320,000||
(i) USD1 million under the TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases; (ii) June 3, Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (Additional Financing) - USD0.07million; (iii) June 25, COVID-19 Active Response and Expenditure Support - USD1 billion (with USD750 million co-financed); (iv) July 1, Promoting Digital Finance Solutions for Inclusive Finance among Partner Financial Institutions - USD0.05 million; (v) July 13, Addressing Health Threats in the Central, West, and East Asia Region - USD0.13 million; (vi) July 24, Due Diligence and Capacity Development of Trade Finance Program Banks - USD0.07 million; (vii) August 27, COVID-19 Emergency Response - USD3 million.
|08B2 - Other||KZT314,587,975,000||USD763,100,000||
(i) Kazakhstan received World Bank support and has restructured part of its Social Health Insurance Project to provide USD10 million for critical medical equipment; (ii) As of May 26, USD3.1 million from USAID to prepare laboratory systems, activate case-finding and event-based surveillance, support technical experts for response and preparedness, bolster risk communication, and more; (iii) June 25, COVID-19 Active Response and Expenditure Support - USD750 million co-financing from AIIB.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures||
(i) Quotas on exports of key food products (wheat and flour) as well as all other restrictions on food product exports will be lifted on 1 June; (ii) As part of the recovery package, Kazakhstan will abandon its 10% flat tax rate and switch to a progressive personal income tax; (iii) July 16, The Kazakh National Bank and the Kazakh Ministry of Finance are planning to issue short-term government securities up to KZT1 trillion on a regular basis until the end of 2020 to maintain economic activity.
|12 - Non-Economic Measures||
(i) April 21, Kazakhstan bans livestock export for 6 months; April 27: (ii) The quarantine regime is extended until 11 May. The government is preparing a plan to ease the measures in cities and regions where the situation with the virus is under control; (iii) Flights between Nur-Sultan and Almaty will start operating starting from May 1; (iv) The schooling has been moved online, and will last after May 11, however technical difficulties have been reported; (v) The State Commission On Ensuring the State of Emergency is preparing a list of businesses that will resume their activities, which includes industrial enterprises, construction and road construction companies, transport companies, banks and public service centres; (vi) April 30, The city of Almaty announced that Almaty residents are authorised to move to their countryside houses (datcha) and to go to city's playgrounds and parks under certain time and people restrictions; (vii) The state of emergency has been lifted as of May 11. Quarantine is maintained but measures will be gradually relaxed; (viii) Internal flights have resumed, but borders remain closed to non-citizens, as well as international flights from Covid-19 affected countries; (ix) The visa exemption for 56 countries (including EU and France) has been suspended until 1 November; (x) As of May 20, WHO has approved a Kazakh COVID-19 vaccine for preclinical trials; (xi) Cash withdrawals limits will be temporarily imposed on legal entities starting early June. A pilot biometric information center has been launched to help banks identify customers in order to provide remote banking services; (xii) Full reopening of kindergartents, movie theaters and children's playgrounds in shopping centers was postponed in Nur-Sultan is postponed. Only kindergartens in small groups of no more than 15 children might continue the operation; (xiii) Starting on July 5, a two-week strict nation-wide lockdown is reintroduced in the country following a surge in cases since the first lockdown and emergency state was lifed on 11 May. On July 15, the government extended the lockdown for another two weeks to August 2.