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Economic growth rate in 2020 becomes lowest in last 20 years

In 2020, the growth rate of the economy fell by 8.6 percent due to the coronavirus pandemic. The President of Kyrgyzstan Sadyr Japarov announced a press conference today.

According to him, this is the lowest figure in the last 20 years. The head of state noted that he became president at a difficult time for the country.

«Many enterprises have suspended their work; the volume of investments has decreased. This hit the incomes of the population and the state budget. Last year, the budget deficit amounted to 20 billion soms. Within the framework of business support, the Guarantee Fund was additionally increased by 2 billion soms.

Loans in amount of 1.1 billion soms were issued in 2020. Commercial banks issued loans in the amount of 3.6 billion. Under the Guarantee Fund program, 680 entrepreneurs received preferential loans. As a result of the negotiations, the Russian-Kyrgyz Development Fund resumed issuing loans. In order to facilitate the issuance of loans, the capital of RSK Bank was additionally increased by 900 million soms,» he said.

The President said that the mortgage lending rate for public sector employees was reduced to 4 percent. «The interest rate will be gradually lowered to 4-6 percent for those, who previously took mortgage loans at 6-8 percent per annum,» he added.