Central and West Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 248
% of GDP (2019): 3.16%
% of Regional Total Package: 0.61%
Package Per Capita in USD: 39.27
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
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].