The Government Approved Anti-Crisis Financial Measures to Support Entrepreneurship

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.