Economic week of Kyrgyzstan Oct. 21 - 26, 2019

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Last week will be remembered for the revitalization of government agencies in the economic sphere and the Government itself. Iin Moscow the prime minister of the Kyrgyz Republic called on the CIS heads of government to intensify their work in trade, which can be assessed as an attempt to push CIS colleagues not to create obstacles to trade among themselves. On the other hand, this week Kazakhstan openly stated that it would not allow Kyrgyzstan to export oil products, since it would sell oil for the republic’s own needs. Other important information is related to the growing confidence of the population in the banking sector, as well as the fact that the rural population, in addition to banks, invests its savings in the purchase of livestock. This year, a large amount of agricultural products was exported to China, and after the Chinese exhibition EXPO-2019, the largest Chinese companies interested in environmentally friendly products began to come to Kyrgyzstan. Kyrgyzstan entered the TOP-20 countries leading in the reformism in creating the conditions for doing business.

Beginning of trust. This week it became known that the deposit base of the banking sector of Kyrgyzstan increased by 11%.

According to Executive Director of the Deposit Protection Agency of the Kyrgyz Republic, Erkebai Murzabekov, in 2019 the total deposit base of the banking sector makes KGS 145 billion.

“At the same time, the deposit base of individuals increased by 7%. All of this has been achieved as part of the ongoing work and shows confidence in the banking system,” he said.

Concrete assistance. The World Bank's Integrated Dairy Productivity Improvement Project, one of the participants of which is the Guarantee Fund OJSC, has been launched in Issyk-Kul Oblast.

Chairman of the Board of the Guarantee Fund Malik-Aidar Abakirov said that the Fund participates in the process of selection of applicants within the framework of the Investments at the Farm Level component, the total amount of which is $2 million, ensures the execution of loan agreements with farmers - members of groups of borrowers and monitors compliance with the schedule of repayment of loans, as well as is responsible for the repayment of loans.

He said that today, 69 loans worth KGS 5 million 572 thousand have been approved for farmers from the villages Svetlaya Polyana, Darkhan, Boz-Beshik, Taldy-Suu and Ken-Suu (Jeti-Ögüz and Tyup regions).

“Loans are aimed primarily at small farmers who cannot obtain loans from commercial banks on market terms. Loans are given in the amount of $1200 per person and for a period of 10 months to 3 years. These interest-free loans of this size are sufficient to enable farmers to make their first investments without major risks,” Abakirov said.

Ways to save. The results of survey conducted among the population on the topic of savings by Savings Banks Foundation for International Cooperation together (SBFIC) with the National Bank of the Kyrgyz Republic were announced this week.

Anya Hoyer, the regional coordinator of SBFIC told that the survey of more than 2100 households was conducted at the beginning of the year to find out what kind of savings people have and how they relate to the banking system.

“We found out that people are ready to make savings. Nearly half of the surveyed households told that they save money. They consider the safest way is deposits in banks and the purchase of livestock. However, most keep their money at home,” said Hoyer.

Disagreement over oil. This week, Kazakh officials said they would not allow the export of oil for re-export.

According to Kazakh Minister of Energy Kanat Bozumbayev, there is no official export of gasoline to Kyrgyzstan. “There is gray export, we know about these schemes. In this connection, we signed a joint order with the Ministry of Internal Affairs, the National Security Committee, the Ministry of Finance and the Ministry of Energy, and introduced restrictions on the export of light petroleum products by road. There we are also talking about the export of oil. If we ship oil to Kyrgyzstan, and this is duty-free (a member of the EAEU), then our budget may lose an average of $ 60 per ton. But then they should not have re-export of these petroleum products. It is not duty-free to get our oil, process it, and then sell gasoline or diesel fuel somewhere to Tajikistan or Afghanistan. We will not be someone else's sponsors. We say: “There will be no re-export, you take a small amount for your needs - there are no questions.” While they do not agree, ”Bozumbayev said.

According to the Minister of Energy of the Republic of Kazakhstan, negotiations between Kazakhstan and Kyrgyzstan continue on the issue of oil exports. Until now, Kyrgyzstan has received ready petroleum products from Russia without customs duties and their volume for the needs of Kyrgyzstan is sufficient.

Export to China. For the first 9 months of 2019, Kyrgyzstan has exported agricultural products to China in the amount of $ 10 million.

Chief Specialist of the Agricultural Products Export Department of the Ministry of Agriculture, Food Industry and Land Reclamation of Kyrgyzstan Beksultan Arzybayev said that mainly cherries, wild cherries, dried fruits, apricots and honey products were exported to China.

Advisor to Agriculture Minister Azat Erkebayev noted the Kyrgyz Republic mainly imports from China chicken meat and consumer goods.

More interest. After visiting the national pavilion of Kyrgyzstan at the EXPO-2019 International Horticultural Exhibition in Beijing, delegations of 4 Chinese companies have already visited the country.

Adviser to minister, director of the Kyrgyz pavilion Azat Erkebaev said that 14 items and 700 units of Kyrgyz products of such companies as Shoro, Yashar, Akun, Kyrgyz Organic, honey companies, etc. were exposed at the exhibition.

“Our products are known as environmentally friendly. Over the 5 months of the work of the pavilion, many Chinese entrepreneurs learned about Kyrgyzstan, who became interested in our products and visited the country to get acquainted with the companies for further cooperation. As far as I know, several domestic companies have already signed agreements, and now the process of updating the documents of the two countries is ongoing,” Erkebaev said.

Doing Business in Kyrgyzstan. The World Bank group published annual Doing Business 2020 report. The report includes the list of 20 economies, improving the most on ease of doing business score. Economies are selected based on the number of reforms and on how much their ease of doing business score improved. First, Doing Business selects the economies that implemented reforms making it easier to do business in three or more of the 10 areas included in this year’s aggregate ease of doing business score. Regulatory changes making it more difficult to do business are subtracted from the number of those making it easier. Second, Doing Business sorts these economies on the increase in their ease of doing business score due to reforms from the previous year (the impact due to changes in income per capita and the lending rate is excluded). The improvement in their score is calculated not by using the data published in 2018 but by using comparable data that capture data revisions and methodology changes when applicable. The choice of the most improved economies is determined by the largest improvements in the ease of doing business score among those with at least three reforms.

This top 20 improvers list does not reflect fully an economy’s attractiveness for businesses, and is purely based on the improvements across 10 different regulatory areas.

The Kyrgyz Republic improved in the areas of getting electricity, getting credit and paying taxes. The electricity utility improved the reliability of power supply by enhancing the monitoring of outages and modernizing its infrastructure to reduce power outages. ISHENIM, the credit bureau, began offering a consumer credit scoring system to banks and other financial institutions to inform their lending decisions. The Kyrgyz Republic made paying taxes easier by consolidating the tax on interest income into the corporate income tax and by introducing an online platform for filing and paying taxes.

Defending interests. The Kyrgyz government is in favor of further deepening the cooperation and partnership of the CIS countries. Speaking at a regular meeting of the Council of Heads of Government of the Commonwealth of Independent States (SGP CIS) in Moscow this week in a narrow composition, Prime Minister of the Kyrgyz Republic, Mukhammedkalyi Abylgaziev, called on colleagues in the Commonwealth to step up work to increase mutual trade, develop and implement joint projects within the CIS.

The Kyrgyz Prime Minister noted that within the framework of the unification, all conditions were created for multilateral cooperation of the participating states in almost all areas, a huge integration experience of joint work was accumulated, and an extensive institutional and legal framework was formed by common efforts.

“The Government of Kyrgyzstan is in favor of further deepening cooperation and partnerships in order to impart progressive development of economic and humanitarian cooperation, to ensure the growth of well-being and quality of life of our peoples. We consider it necessary to step up work to increase mutual trade, develop and implement joint projects within the Commonwealth,” he said, emphasizing that in order to achieve these goals it is important to fully utilize the potential of the Free Trade Area Agreement.

“Despite the certain successes achieved in this direction, we need a systematic, committed work by all parties to the Treaty to remove barriers. This is the only way to achieve qualitative changes in the current trading regime within the CIS and ensure free access of goods of national producers to the markets of the states participating in the integration association,” the Prime Minister of the Kyrgyz Republic emphasized.

An important seminar in the Kyrgyz Republic. This week, the Ministry of Economy of the Kyrgyz Republic held a three-day regional seminar for licensing and customs authorities of Central Asian states on export control issues.

The event was held with the constant support of the OSCE Program Office in Bishkek,

The event was attended by representatives of licensing and customs authorities of Kyrgyzstan, Kazakhstan, Uzbekistan, Tajikistan, Turkmenistan, representatives of the OSCE Program Office in Bishkek, a representative of the Federal Service for Technical and Export Control of the Russian Federation, international and national experts in the field of export control.

At the seminar, an exchange of national experience and effective methods in the field of export control in terms of export licensing, import of dual-use goods and customs control, as well as the establishment of inter-regional interaction of authorized state bodies of Central Asian countries took place.

Kabar News Agency


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