The statistics of the National Bank of the Kyrgyz Republic publish information on the main indicators of the banking sector of the Kyrgyzstan as of March 31, 2020.
The statistics provides data on capital adequacy, liquidity, asset quality, profitability, loans and deposits, foreign currency position, and dollarization.
As for profitability, by the end of March for the month, the net interest margin slightly decreased from 6.9 to 6.8%.
The volume of classified loans increased from 11.6 billion KGS to 12.7 billion KGS.
|Key indicators of the banking sector (percent, unless otherwise indicated)
|Net Total Capital / Risk Weighted Assets
|Tier 1 Net Capital / Risk Weighted Assets
|Correspondent account with the NBKR / Deposits of legal entities and individuals
|Excess of obligatory reserve requirements / Correspondent account in the NBKR
|Classified loans (to customers, million KGS)
|Classified loans (to customers) / Total loans (to customers)
|Special loan loss provision for loans / Total loans
|Special loan loss provision for loans / Classified loans
|Classified loans / Total assets
|Return on Assets (ROА)
|Return on Equity (ROE)
|Net interest margin
|Service revenue and fee/ commission income
|Loans and deposits
|Loans (to customers) / customer deposits
|Loans (to customers) / assets
|Currency position and dollarization
|Currency position (million KGS)
|Loans (to customers) / Deposits (in foreign currency)
|Share of deposits in foreign currency from the deposit base*
|Share of loans (to customers) in foreign currency from the loan portfolio (to customers)**
* Do not include deposits of banks, other PKU and deposits of the government of the Kyrgyz Republic.
Loans are indicated with discount.
SUPPORT OF REGIONAL ENTREPRENEURS – PRIORIY AREA OF OJSC “GUARANTEE FUND”
In the Year of Regional Development, Digitalization of the country and Child Support, OJSC “Guarantee Fund” carries out diverse creative activities to assist SMEs of the republic, providing them with guarantees for obtaining loans.
The activities of OJSC “Guarantee Fund” contribute to the implementation of SME business plans, employment, reduction of migration, infrastructure and socio-economic development of the regions as a whole.
Key Performance Results for 4 months of 2020
- The equity of OJSC “Guarantee Fund” increased from 1.205 billion KGS to 1.225 billion KGS, increase of 102%.
- 593 guarantees were issued which is 412% more than for 4 months of 2019.
- 98% of guarantees were issued to the regions.
- The sum of guarantees amounted to 204 million KGS, which is 91% compared to 4 months of 2019.
- Net profit amounted to 20 million KGS, which is 183% more than in 4 months of 2019.
- From 167% to 300% more guarantees in quantity were in issued, taking into account all regions, than in 4 months of 2019.
- The amount of guarantees issued from 100% to 117% more than for 4months of 2019, taking into account all regions.
Within the framework of the execution of the Decree of President, S. Zheenbekov, on declaring 2020 – the Year of Regional Development, Digitalization of the Country and Child Support, OJSC “Guarantee Fund” from the start of this year, and as of April 30, 2020 issued 593 guarantees in the amount of 204 million KGS, partner banks issued loans worth 1.1 billion KGS. It should be noted that 98% of guarantees were issued to the regions. From year to year, guarantees demonstrate an increase in quantitative and qualitative parameters.
OJSC “Guarantee Fund” contributes to the reduction of migration, to the reduction of poverty, to the provision of employment for the residents of the regions. Due to the guarantee support of entrepreneurs, in total, 172 (2585 from 2016) new jobs were created in the republic for 4 months of 2020, 1392 (11 854 from 2016) existing jobs were supported.
Women entrepreneurs received 203 guarantees in the amount of 62 million KGS. The share of women entrepreneurship in the total number of guarantees provide was 34 percent.
As of April 30, 2020, two export-oriented projects received a total of 23 million KGS worth of guarantees.
OJSC “Guarantee Fund”, taking into account the current economic situation in the country, in order to support SMEs – guarantors, approved the restructuring of 140 guarantees in the amount of 165 million KGS. We will continue to support entrepreneurs.
OJSC “Guarantee Fund” continues the implementation of two cluster projects:
- “Financing of the dairy sector in Issyk-Kul region” (World Bank project). The goal of the project is to provide farmers with funds for the purchase of cows and they are paid with a loan by selling milk. In total, loans were issued to 913 farmers in amount of 65 million KGS, and they provide an additional 12 to 15 tons of milk to dairy enterprises every day.
- “Intensive Sheep Husbandry”. Soon, we will begin implementation, the coronavirus temporality suspended the implementation of the program “One District – One Enterprise”, which provides a great socio-economic effect.
- Within the framework of the program “One District – One Enterprise”, as of April 30,2020, guarantee support was provided to 48 projects in the amount of 172 million KGS, the volume of loans under guarantees amounted to 534 million KGS.
Over the 4 months of 2020, the specialists of OJSC “Guarantee Fund” trained employees of partner banks on the mechanisms for providing guarantees, with insufficient collateral for 181 loan officers. And also, in all regions of the country, 18 seminars for entrepreneurs and bankers were held. They were attended by 40 bank employees and 546 entrepreneurs.
It is worth to note that the need for SMEs in guarantees is 40-50% of the loan portfolio of the banking system, this requires an increase in the capitalization of OJSC “Guarantee Fund” and, on the proposal of the NBKR, a decision is being prepared to increase the authorized capital of OJSC “Guarantee Fund” by another 1 billion KGS.
Currently, the Government of the Kyrgyz Republic, together with international financial organizations (the World Bank, ADB, IFC, and others) is developing SME support programs and within them, Guarantee Fund” will use its assets and attract funds from these donors.
According to the National Bank of the Kyrgyz Republic, in April 2020, gross reserves amounted to 2 billion 397.59 USD. At the same time, the liquid part amounted to 2 billion 313.76 million USD.
Compared to March, gross reserves increased by 35.8 million from 2 billion 361.85 million USD.
|International reserves (end of period),
||Liquid part of reserves
Equivalent to 6.4-9.7 of global gross domestic product (GDP) as a result of the pandemic of the new coronavirus disease COVID-19. This is stated in a new report by the Asian Development Bank.
The updated COVID-19 Potential Economic Impact Assessment report indicated that economic losses in the Asia-Pacific region can range from 1.7 trillion USD for a scenario with a short holding period of three months to 2.5 trillion USD for a scenario with a long containment of 6 months. At the same time, the region accounts for about 30% of the total reduction in world production. The People’s Republic of China may suffer losses ranging from 1.1 to 1.6 trillion USD. The new analysis updates the findings presented in the Asian Development Outlook (ADO 2020), which predicted that global losses from COVID-19 will range from 2 to 4.1 trillion USD.
Countries around the world are quickly responding to the effects of the pandemic by introducing measures such as easing fiscal and monetary policies, increasing health spending and direct support to cover income losses. According to the report, government efforts can mitigate the economic impact of COVID-19 by 30-40%. This could reduce global economic losses due to the pandemic to levels ranging from 4.1 trillion to 5.4 trillion USD.
The analysis, which uses the estimated global equilibrium model as part of the global trade analysis project, covers 96 countries affected by the outbreak, with more than 4 million cases of COVID-19. In addition to the shocks associated with tourism, consumption, investment, trade and manufacturing, which are covered by the ADO 2020 estimates, the new report includes transmission channels such as increased trade costs affecting mobility, tourism and other industries; supply disruptions that negatively affect production and investment; and government policies that mitigate the global economic impact of COVID-19.
“This new analysis provides an overview of the very significant potential economic impact of COVID-19. It also emphasizes the important role of policy measures that can help mitigate economic damage. These conclusions can provide governments with appropriate guidance in developing and implementing measures to contain and suppress a pandemic and reduce its impact on the economy and population”, said ADB chief economist Yasuyuki Sawada.
The ADB Policy Action Database COVID-19 contains detailed information on key economic measures that ADB member countries are taking to combat the pandemic.
Under short and long containment scenarios, the report notes that border closures, travel restrictions and quarantines that were applied in countries affected by outbreaks to stop the spread of COVID-19 are likely to cut world trade by 1.72.6 trillion USD. Global job cuts will range from 158 to 242 million jobs, with the Asia-Pacific region accounting for 70% of total job losses. Labor income worldwide will be reduced by 1.2-1.8 trillion USD, 30% of which will be felt by the countries of the region, or from 359 billion USD to 550 billion USD.
In addition to increasing health spending and strengthening health systems, income and employment protection is needed to avoid a more complex and lengthy economic recovery. Countries should address supply chain disruptions; support and deepen electronic commerce and logistics for the delivery of goods and services; and to fund temporary social protection measures, unemployment subsidies, and the distribution of basic goods, especially food, to prevent a sharp drop in consumption, the report said.
On March 31, 120 million USD was received from the International Monetary Fund from two funds, Finance Minister, Baktygul Zheenbaeva, said at a meeting of the Ata Meken fraction on May 15, answering Saidulla Nashanov’s questions about external assistance.
The percentage is on average 0.7%, because from one fund it came in at 0%, in another – under 1%.
One fund has a grace period of three years, the second -5.5 years, Kyrgyzstan will pay in 10 years.
The day before yesterday, the IMF received the second tranche under the same conditions – 121 million USD, the are still in use and have not been used yet,” she said, noting that this was to support the budget.
In addition, 50 million USD is expected from the Asian Development Bank to support the budget, the board of directors has already approved the allocation, the Ministry of Finance will come to parliament for ratification next week, she said.
“We also expect 15 million USD from the European Union, the negotiations are ongoing today. We expect from the Eurasian Development Fund 100 million USD as a budget loan at 1% per annum for 20 years. The decision of the board of directors has not yet been, here we are waiting”, B. Zheenbaeva said.