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Government of Kyrgyzstan offers set of anti-crisis financial measures

The National Bank of Kyrgyzstan will make every effort to ensure the necessary level of financial liquidity in the banking sector. The Prime Minister of Kyrgyzstan Mukhammedkaly Abylgaziev said, noting the need to direct all efforts to maintaining and restoring economic life in the country.

«Today, almost every enterprise feels a huge load. Despite the difficult situation, we must help our enterprises overcome the crisis. The National Bank together with commercial banks will analyze the situation in detail and take comprehensive measures to change the terms of loan repayment. This applies to both the principal amount and interest payments. We must not allow bankruptcy of domestic enterprises,» Mukhammedkaly Abylgaziev said.

The current situation leads to the fact that it is necessary to change the structure of the economy.

Mukhammedkaly Abylgaziev

«We have to make it more independent of imports, especially in the ​​food security sphere. Import substitution is the right way. We have an opportunity to take the path of producing most of the necessary goods ourselves. The Kyrgyz-Russian Development Fund will help us in this difficult process, for which a special preferential program will be developed,» he said.

Anti-crisis plan developed by the Cabinet of Ministers:

  • To recommend the National Bank of the Kyrgyz Republic to carry out awareness-rising work among the population about the preference of remote banking services;
  • To recommend the National Bank of the Kyrgyz Republic to conduct credit auctions in order to provide the banking system with the necessary level of KGS liquidity to maintain lending to the real sector of the economy;
  • To recommend the National Bank of the Kyrgyz Republic to ease prudential requirements for commercial banks and the Non-Bank Financial and Credit Organizations for the period until January 1, 2022;
  • To work with commercial banks on prolonging and restructuring the principal amounts and interest on loans for a period of at least three months, including projects financed by the Government of the Kyrgyz Republic and RKDF for support of small and medium-sized businesses;
  • In order to prevent crowds, extend the time of holding general meetings of shareholders until July 1, 2020;
  • In order to support domestic producers, fix the norm on provision of benefits to domestic suppliers in the amount of 20 percent in the process of public procurement;
  • In order to help domestic suppliers, manufacturers and contractors, adjust public procurement contracts in terms of deadlines, observance of which was affected by the introduction of the emergency situation / a state of emergency;
  • To attract funds of the RKDF placed in the securities of emitters of the Russian Federation for preferential lending to sectors of the economy of the Kyrgyz Republic;
  • To simplify the procedures of the RKDF to ensure maximum accessibility to credit resources;
  • To work with partners, who are most affected by the spread of coronavirus and the announcement of an emergency situation / a state of emergency, to jointly form a business support fund.
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