The NBKR will make every effort to ensure the necessary level of financial liquidity of the banking sector. The Prime Minister of the Kyrgyz Republic, Mukhammedkalyi Abylgaziev, noted that it is necessary to direct all efforts to maintain and restore economic life in the country.
“Today, almost every enterprise feels a huge pressure. 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 will take comprehensive measures to change the terms of loan repayment. This applies to both the principal and interest payments. We must not allow bankruptcy of domestic enterprises”, said Mr. Abylgaziev.
The Head of the Government emphasized that the current situation leads to the fact that it is necessary to change the structure of the economy.
“We must make it more independent of imports, especially in the area of food security. Import substitution is the right way. We have the opportunity to begin the path to producing most of the necessary goods ourselves. The RKDF will help us in this difficult process, for which a special preferential program will be developed”, said the Prime Minister.
Note that according to the Anti-Crisis Plan, the following decisions were made:
- Recommend to the NBKR to conduct outreach to the population about the preference if remote services;
- Recommend to the NBKR to conduct credit auctions in order to provided the banking system with the necessary level of KGS liquidity to maintain lending to the real sector of the economy;
- Recommend to the NBKR to ease the prudential requirements for commercial banks and NBFIs for the period up to January 1, 2022;
- Work with commercial banks on the extension and restructuring of principal and interest on loans for a period of at least 3 months, including projects funded by the Government of the Kyrgyz Republic and Russian Federation for the support of SMEs;
- In order to prevent crowds, to extend the dates of general meetings of shareholders until July 1, 2020;
- In order to support domestic producers, fix the norm (Article 4 part 3 of the Law of the Kyrgyz Republic “On Public Procurement”) on the provision of benefits to domestic suppliers in the amount of 20 percent in the process of public procurement;
- In order to assist domestic suppliers, manufacturers, and contractors to adjust public procurement contracts by the deadlines, the observance of which was affected by the introduction of the emergency / emergency mode;
- To attract funds of the RKDF placed in the securities of issuers of the Russian Federation for preferential lending to sectors of the economy of the Kyrgyz Republic;
- Simplify the procedures of the RKDF to ensure maximum accessibility to credit resources;
- To work with development partners to jointly form a business support fund, which are most affected by the spread of coronavirus, and the announcement of an emergency situation.
The Prime Minister of the Kyrgyz Republic, M. Abylgaziev, held a meeting, which resulted in the adoption of a plan to provide fiscal measures to support entrepreneurship.
As the Head of the Government noted, today many entrepreneurs are forced to suspend their activities.
This, once again, proves how vulnerable we are in the context of global crises. The crisis has affected the whole world, and the current situation is also negatively affecting our economy. I urge employers who still have financial opportunities to show solidarity and social responsibility by ensuring a minimum income level for their employees during the quarantine period. At such a time, we should all come together”, said the Prime Minister.
For his part, as the Prime Minister noted, the Government will provide maximum assistance to business, individual entrepreneurs, and citizens through financial and tax incentives after the resumption of business activity.
As part of the Plan for the provision of fiscal measures to support entrepreneurship, the Government of the Kyrgyz Republic decided:
- To provide deferrals and installments for the payment of the amounts of tax debt and social security debt arising from the introduction of the state of emergency and state of emergency from March 22, 2020;
- Do not apply tax sanctions and penalties for untimely fulfillment of tax obligations until July 1, 2020;
- Recommend that local governments provided a deferral of payments for rent of municipal property for 3 months from April 1, 2020;
- Extend the terms for the widespread introduction of components of the electronic system of fiscalization of tax procedures until July 1, 2020;
- Extend the deadline for submitting a single tax return for individuals and sole proprietors until April 1, 2021;
- Extend deadlines for submission of reports by business entities on taxes and social contributions until July 1, 2020, subject to timely payment of payments;
- Extend the moratorium on inspections by state regulatory authorities until January 1, 2022;
- Introduce a restriction on field tax audits until January 1, 2021, with the exception of:
- Scheduled inspections of business entities operating in the production and turnover of excisable groups of goods;
- Unscheduled inspections carried out in case of reorganization, liquidation of organizations and termination of activity of a sole proprietor;
- Unscheduled inspections and cross-checks carried out in the case of receipt by the tax authorities of documented information testifying to the facts of incorrect tax calculation by taxpayers after the completion of the emergency / emergency mode.
- Recommend to the appropriate organizations within 3 months:
- Do not turn off electricity, water, gas and other utilities, communications and internet services, due to the presence of subscriber debt;
- Do not charge penalties, penalties for non-payment of utility bills (for electricity, water, gas, garbage collection, communication services, internet, etc.)
- Provide a deferral of payments for the rental of state property for 3 months, from April 1, 2020;
- Introduce a temporary ban on conducting bankruptcy proceedings until January 1, 2021.
At the beginning of trading on Moscow Exchange, Russian Ruble has sharply depreciated. The US Dollar as of 10:05 reached 80.2 Rubles, an increase compared to Friday’s closing of 1.76 percent, the Euro – 88.87 Rubles, an increase of 1.21 percent.
The Ruble is getting cheaper amid the introduction of quarantine measures in Russia, and the fall in oil prices, which on Monday night exceeded five percent. In particular, the price of Brent dropped below $24 per barrel.
Major Russian stock indices also go down. The Moscow Stock Exchange index fell 1.7 percent, while the RTS index dropped 2.8 percent.
Oil quotes are falling due to a sharp excess of supply over demand. According to Bloomberg, real transactions in the United States at a futures price of $20 per barrel are at $10-15. There cases when oil companies paid extra to customers to take raw materials have already been recorded.
Chinese industrial enterprises amid a significant improvement in the epidemic situation in the country were able to resume production by an average of 98.6%, Xin Goubin, Deputy Minister of Industry and Informatization of China, declared at a news conference on Monday.
“As of March 28, the average level of utilization of production capacities of industrial enterprises in the country has already reached 98.6%, and the average rate of return of people to jobs is 89.9%”, said Xin Goubin.
The average coefficient of the resumption of wok of SMEs reached 76%.
At the same time, in Hubei Province, which has become the focus of the spread of coronavirus infection, the average occupancy rate of industrial enterprises is already 95%, approximately 70% of the employees returned to work.
In order to support measures to prevent the spread of coronavirus infection on the territory of Kyrgyzstan, the employees of OJSC “Guarantee Fund” transferred their one-day salary to fight the COVID-19 coronavirus pandemic to the account of the Central Treasury of the Ministry of Finance of the Kyrgyz Republic.
Employees of OJSC “Guarantee Fund” believe that these funds will help and will be useful in fighting the spread of the virus.