Central and West Asia
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||KGS17,457,721,723||USD234,000,000|
|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||KGS17,457,721,723||USD234,000,000||
As of September 10, The National Bank of the Kyrgyz Republic has already sold USD234 million of foreign exchange reserves [update].
|02 - Credit creation info_outline||KGS2,495,000,000||USD33,442,508|
|02A - Financial sector lending/funding info_outline||KGS2,495,000,000||USD33,442,508||
September 7, To support business entities in the context of the spread of COVID-19, the Government of the Kyrgyz Republic adopted a resolution dated June 9, 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 September 4, within the framework of this program, loans were made to 968 entrepreneurs in the amount of KGS1,348,605 thousand [update].
|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||KGS744,000,000||USD9,972,435|
|03A - Long-term lending info_outline||KGS744,000,000||USD9,972,435||
June 22, 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.
|03B - Forbearance|
|04 - Equity support info_outline|
|05 - Government support to income/revenue||KGS5,400,000,000||USD72,380,579||
July 3, 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 September 15, KGS5.4 billion was allocated from the republican budget, of which KGS5.2 billion was used. Utilization of KGS5.2 billion as of September 15: (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.
|05A - Health|
|05B - Non-health||
No amount/estimate: September 15, 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 August 1 to December 31, 2020 [update].
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||KGS52,019,012,817||USD697,253,009|
|08A - Swaps info_outline|
|08B - International loans/grants||KGS52,019,012,817||USD697,253,009|
|08B1 - Asian Development Bank||KGS5,355,193,441||USD71,780,000||
(i) April 30, 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; (ii) May 4, USD50 million under the COVID-19 Active Response and Expenditure Support Program; (iii) 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; (v) July 13, USD0.38 million under the Addressing Health Threats in the Central, West and East Asia Region Project; (vi) July 24, USD0.21 million under the Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3).
|08B2 - Other||KGS46,663,819,376||USD625,473,009||
(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) April 28, The European Union provided assistance in the form of grants amounting to more than EUR36 million; (iv) 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; (v) May, 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) May 20, The United States through the US Agency for International Development will provide health assistance amounting to approximately USD0.9 million; (viii) As of June 18, the German Development Bank KfW agreed to redirect USD30 million to ensure food security in the country; (ix) July 14, 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) July 30, 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 August 12, the Eurasian Fund for Stabilization and Development (EFSD) approved a loan to the Kyrgyz Republic in the amount of USD100 million; (xii) August 13, 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).
|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; (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 September 5, 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||
(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 Kyrgyz Republic restarted; (viii) From June 8, restriction on visits to religious institutions is lifted; (ix) June 15, International flights resumed; (ix) August 7, The Kyrgyz Republic resumed its international flights with Turkey and United Arab Emirates; (x) As of September 8, 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 childen 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 [update]; (x) September 10, The Kyrgyz Republic resumed its international flights with Kuwait [update].