The IMF approved the provision of the second emergency loan in amount of 121.1 million USD to the Kyrgyz Republic
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The Executive Board of the International Monetary Fund has approved the provision of emergency assistance to Kyrgyzstan in amount of 121.1 million USD. This is the second IMF emergency loan provided by the Kyrgyz Republic under the RFI/RKF since the beginning of the pandemic. This was reported on the IMF website.
Thus, within the framework of the Accelerated Financing Instrument (RFI), 80.7 million USD was provided, which is 33% of the quota, and 40.4 million was allocated 17% of the quota under the Accelerated Credit Facility (RKF).
“To eliminate the remaining balance of payments deficit and ease the burden associated with the necessary adjustments, it is urgent to attract additional assistance from donors. In this regard, we welcome the intention of the authorities to request a suspension of debt service support initiative supported by the Group of Twenty and the Paris Club and spend the released funds on measures to overcome the consequences of COVID-19 in the health sector or in the economy”, according to a statement by deputy managing director Tao Zhang.
In addition, it is noted that the IMF welcomes the emergency contingency plan in the healthcare sector, already approved by the official authorities of the Kyrgyz Republic, and the initial plan of economic measures to eliminate damage to health and the economy, as well as the forthcoming larger package of measures.
“In order to ensure the efficient use of the funds provided to overcome the crisis, the country’s authorities will strengthen public procurement rules by publishing documents confirming the actual delivery, along with the name of the companies which were awarded the contract, and their beneficial owner in relation to all public procurement contracts”, said in a statement.
Recall that on March 26, 2020, the IMF approved the allocation of 120.9 million USD, after which a decision to double the annual amount of emergency funding available under the “exogenous shock window” provided by the RKF to 100% of the quota was made on April 6.