Central and West Asia
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||KGS46,017,048,239||USD616,803,811|
|01A - Short-term lending info_outline||KGS1,000,000,000||USD13,403,811||
10 May 2020, As part of the Kyrgyz Government’s anti-crisis plan, the National Bank of the Kyrgyz Republic (NBKR, the central bank) will allocate KGS1 billion for floating capital.
|01B - Support policies for short-term lending info_outline||
No amount/estimate: April 2020, The National Bank of the Kyrgyz Republic will postpone enactment of several financial regulations until further notice. In addition, it took the following decisions: (i) liquidity ratio is lowered to a minimum of 30% (from the current 45%); (ii) liquidity ratio requirements (7-day and overnight/instant) will be removed; and (iii) minimum threshold level for mandatory reserve requirements is reduced from 80% to 70%.
|01C - Forex operations info_outline||KGS45,017,048,239||USD603,400,000||
As of 5 March 2021, the National Bank of the Kyrgyz Republic already sold USD603.4 million (USD519.7 million in 2020 and USD83.7 million in 2021) of foreign exchange reserves.
|02 - Credit creation info_outline||KGS3,495,000,000||USD46,846,319|
|02A - Financial sector lending/funding info_outline||KGS2,495,000,000||USD33,442,508||
7 September 2020, To support business entities in the context of the spread of COVID-19, the Government of the Kyrgyz Republic adopted a resolution dated 9 June 2020 No. 315 on the approval of the program "Financing of Business Entities". In order to implement this program, the Ministry of Finance issued KGS2,495 million to commercial banks. As of 4 September 2020, within the framework of this program, loans were made to 968 entrepreneurs in the amount of KGS1,348,605 thousand.
|02B - Support policies for long-term lending info_outline|
|02B1 - Interest rate adjustments||
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%.
|02B2 - Other policies to support long-term lending||
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%.
|02C - Loan guarantees||KGS1,000,000,000||USD13,403,811||
10 May 2020, As part of the Kyrgyz Government’s anti-crisis plan, the National Bank of the Kyrgyz Republic will allocate KGS1 billion to increase the authorized capital of the Guarantee Fund.
|03 - Direct long-term lending info_outline||KGS7,446,600,000||USD99,812,818|
|03A - Long-term lending info_outline||KGS7,446,600,000||USD99,812,818||
(i) 10 May 2020, As part of the Kyrgyz Government’s anti-crisis plan, the National Bank of the Kyrgyz Republic will allocate: (a) KGS750 million to support small- and medium-sized businesses via Keremet Bank, (b) KGS1.5 billion for financing agriculture, and (c) KGS1 billion for microcredit companies; (ii) 22 June 2020, The Ministry of Finance, in cooperation with the Mayor's Office of Bishkek in accordance with the Budget Code of the Kyrgyz Republic, decided to allocate an interest-free budget loan to the city of Bishkek in the amount of KGS744 million to pay salaries and leave of the teachers working in educational institutions of the city of Bishkek; (iii) 16 April 2021, The Government of the Kyrgyz Republic, in accordance with the Resolution No. 315, is implementing the Program "Financing of Entrepreneurship Entities". Within the framework of this Program, credit funds at preferential interest rates from 4% to 11% per annum were provided to 2,874 business entities, amounting to KGS3,452.6 million (of which, the Ministry of Economy and Finance financed KGS734.4 million).
|03B - Forbearance|
|04 - Equity support info_outline|
|05 - Health and income support||KGS9,021,600,000||USD120,923,820|
|05A - Health support||KGS500,000,000||USD6,701,905||
14 January 2021, The Ministry of Health and Social Development provided funds amounting to KGS500 million for compensation payments to employees of health organizations and persons involved in work in the hotbed areas.
|05B - Income support|
|05B1 - Tax and contribution deferrals and policy changes|
|05B2 - Tax and contribution rates reduction|
|05B3 - Subsidies to individuals and households||
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.
|05B4 - Subsidies to businesses|
|05B5 - Indirect income support|
|05B6 - No breakdown (income support)|
|05C - No breakdown (health and income support)||KGS8,521,600,000||USD114,221,915||
(i) 3 July 2020, KGS3.8 billion is allocated from the republican budget for the expenses related to COVID-19. KGS1.8 billion has been spent since February 2020 for the: (a) payment to health workers, (b) purchase of disinfectants, test kits, and personal protective equipment, (c) purchase of food wheat grain, (d) provision of financial assistance for the travel of students outside the republic, etc. As of 15 September 2020, KGS5.4 billion was allocated from the republican budget, of which KGS5.2 billion was used. Utilization of KGS5.2 billion: (a) KGS2.1 billion for the purchase of medical equipment, PCR, reagents, medical products, PPE, (b) KGS785 million for the compensation of medical workers,(c) KGS452 million for the compensation of employees of law enforcement agencies, (d) KGS454 million for medical makeshift hospitals and meals, (e) KGS200 million for the provision of food for low-income families, (e) KGS221 million for the vaccines against flu and pneumococcus, (f) KGS1.1 billion for the provision of grain and medicines. 12 November 2020, The allocation to prevent and combat coronavirus infection increased to KGS6.1216 billion; (ii) 6 April 2021, The Ministry of Economy and Finance pledged KGS2.4 billion to combat COVID-19.
|06 - Budget reallocation info_outline||KGS2,400,000,000||USD32,169,146||
6 April 2021, The Ministry of Economy and Finance, in accordance with the Law of the Kyrgyz Republic "On the Republican Budget for 2021 and Forecast 2022-2023," provides funds in the state budget reserve amounting to KGS2.4 billion. These funds are provided to finance unforeseen expenses, including in the event of a serious deterioration in the epidemiological situation associated with coronavirus infection.
|07 - Central bank financing government|
|07A - Direct lending and reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||KGS60,016,738,325||USD804,453,009|
|08A - Swaps info_outline|
|08B - International loans/grants||KGS60,016,738,325||USD804,453,009|
|08B1 - Asian Development Bank||KGS13,243,994,702||USD177,520,000||
(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].
|08B2 - Other||KGS46,772,743,622||USD626,933,009||
(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.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures||
(i) February 2020, The NBKR raised the policy interest rate by 75 basis points to 5% amid global uncertainty and the increase in inflation; (ii) Banks and 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); (iii) As of 5 September 2020, the republican budget received KGS6,300.20 million from the issuance of government securities: (a) KGS991.34 million ST-bills, and (b) KGS5,308.86 million ST-bonds.
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)||
(i) 25 May 2020, Public transport has opened; (ii) April 2020, The authorities have taken drastic measures to prevent the outbreak including (a) the closure of borders with People's Republic of China where 36% of imports of goods originate, and (b) border restrictions with Kazakhstan and Uzbekistan; (iii) From 5 June 2020, domestic flights and public transport between the regions of Kyrgyz Republic restarted; (iv) From 8 June 2020, restriction on visits to religious institutions is lifted; (v) 15 June 2020, International flights resumed; (vi) 7 August 2020, The Kyrgyz Republic resumed its international flights with Turkey and United Arab Emirates; (vii) 10 September 2020, The Kyrgyz Republic resumed its international flights with Kuwait; (viii) The Kyrgyz Republic resumed its international flights with Kazakhstan on 20 September 2020 and with Russian Federation on 21 September 2020.
|12B - Measures affecting business and workplace||
(i) 21 May 2020, Large shopping centers have opened; (ii) 25 May 2020, Cafes and restaurants fitting no more than 50 people have been allowed to resume operation in Bishkek.
|12C - Others||
(i) Effective 22 March 2020 for 6 months (a) temporary export ban on wipes, other antibacterial products, and disinfectants, and (b) temporary export ban on certain food products like wheat, meslin, etc.; (ii) April 2020, The authorities have taken drastic measures to prevent the outbreak including (a) the quarantine of people coming from abroad, (b) a lockdown of all non-essential activities, and (c) a curfew; (iii) 10 May 2020, The state of emergency ended and the curfew was lifted while the quarantine regime will work until the stabilization of the epidemiological situation; (iv) As of 8 September 2020, the Ministry of Education said that in the first quarter of the 2020-2021 academic year in Kyrgyz Republic, only 1st grades are taught in the traditional format. The rest of them are taught remotely. At the same time, 62 schools of the Republic are allowed to teach children of all classes in the traditional mode. These are small-scale or elementary schools located in areas where no cases of coronavirus infection have been detected; (v) 1 April 2021, The Kyrgyz Republic officially joined the COVID-19 Free Travel digital platform. It is now included in the list of countries whose citizens can enter the territory of the Russian Federation without requiring a reason for entry, provided that they present negative COVID-19 test, displayed in the COVID-19 Free Travel mobile app; (vi) 7 April 2021, Schools in Bishkek will start distance learning from 12 April 2021 until the epidemiological situation improves.