Central and West Asia
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||KGS16,189,425,701||USD217,000,000|
|01A - Short-term lending info_outline|
|01B - Support policies for short-term lending info_outline||
No amount/estimate: April, The National Bank of the Kyrgyz Republic (NBKR, the central bank) 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||KGS16,189,425,701||USD217,000,000||
April, The National Bank of the Kyrgyz Republic has already sold USD217 million of foreign exchange reserves so far (about 50% more than total FX interventions for the whole year of 2019).
|02 - Credit creation info_outline|
|02A - Financial sector lending/funding info_outline||
No amount/estimate: May, The authorities are preparing a second package including subsidized credit to banks to provide funding to small and medium-size enterprises through soft loans as mentioned in Measure 5B.
|02B - Support policies for long-term lending info_outline||
No amount/estimate: April, The NBKR will postpone enactment of several financial regulations until further notice. In addition, it made the following decisions: (i) risk-weights of FX corporate and retail loans will be reduced from 150% to 100%, (ii) 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), and (iii) 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.
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline|
|03A - Long-term lending info_outline|
|03B - Forbearance|
|04 - Equity support info_outline|
|05 - Government support to income/revenue||KGS2,312,775,100||USD31,000,000|
|05A - Health||KGS1,193,690,374||USD16,000,000||
May, The authorities will safeguard health spending at around budgeted levels and create space for increasing health and other spending. In collaboration with international organizations, the authorities have recently adopted a health sector contingency plan, with an estimated cost of USD16 million to provide training for health-care workers, procure personal protective equipment and medical tests, and to put in place a communication plan about measures to contain COVID-19.
|05B - Non-health||KGS1,119,084,726||USD15,000,000||
May, To mitigate the impact on the economy, the authorities have approved the first package of anti-crisis plan (economic measures) of USD15 million including the postponement of tax payments, time-bound exemptions of property and land taxes, and temporary price controls on 11 essential food items. They are preparing a second package of economic measures of about USD540 million, including a food security program to the vulnerable groups, and subsidized credit to banks to provide funding to small and medium-size enterprises through soft loans.
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||KGS26,205,233,997||USD351,250,000|
|08A - Swaps info_outline|
|08B - International loans/grants||KGS26,205,233,997||USD351,250,000|
|08B1 - Asian Development Bank||KGS5,311,922,165||USD71,200,000||
(i) April 30, USD1.02 million is the estimated support under the TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases; (ii) May 4, USD50 million under the COVID-19 Active Response and Expenditure Support Program; (iii) June 1, USD0.01 million under Evidence-Based and Strategic Country Knowledge Support (Additional Financing); (iv) June 3, USD0.07 million under the Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (additional financing); (iv) June 5, USD0.10 million under the Preparing the Promoting Economic Diversification Program (additional financing); (v) June 16, USD20 million under COVID-19 Pandemic Emergency Project [update].
|08B2 - Other||KGS20,893,311,832||USD280,050,000||
(i) March 26, 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) April 2, 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) May 8, 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; (iv) May, USD1 million under the United Nations (UN) COVID-19 Response and Recovery Multi-Partner Trust Fund (COVID-19 MPTF); (v) The Islamic Development Bank (IsDB) provided USD15 million under Emergency Support for Building COVID-19 pandemic preparedness and response capacity in the Kyrgyz Republic; and (vi) May 20, The United States through the US Agency for International Development will provide health assistance amounting to approximately USD0.9 million.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures||
(i) No amount/estimate: February, The NBKR raised the policy interest rate by 75 basis points to 5% amid global uncertainty and the increase in inflation; and (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).
|12 - Non-Economic Measures||
(i) Effective March 22 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, 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, (b) border restrictions with Kazakhstan and Uzbekistan, (c) the quarantine of people coming from abroad, (d) a lockdown of all non-essential activities, and (e) a curfew; (iii) May 10, The state of emergency ended and the curfew was lifted while the quarantine regime will work until the stabilization of the epidemiological situation; (iv) May 21, Large shopping centers have opened; (v) May 25, Public transport has opened; (vi) May 25, Cafes and restaurants fitting no more than 50 people have been allowed to resume operation in Bishkek; (vii) From June 5, domestic flights and public transport between the regions of Kyrgyzstan re-started; (viii) From June 8, restriction on visits to religious institutions is lifted; (ix) June 15, International flights resumed [update].