The National Bank of Kyrgyzstan has allocated over 6 billion soms to support the domestic economy and the real sector, Chairman of the National Bank, Tolkunbek Abdygulov, has announced during an online meeting with the President.
According to the Chairman of the National Bank, more than 3 billion soms have been provided to commercial banks since January, issued to the population in the form of loans at 10-14%. In addition, commercial banks have been extended their loans in the amount of 1 billion soms and provided with new ones for more than 400 million soms.
In order to expand preferential mortgage lending and lending to small and medium-sized businesses in the context of pandemic, additional capitalization of Keremet Bank OJSC was carried out for 1.5 billion soms and Guarantee Fund OJSC – to support entrepreneurs by providing guarantees for getting loans from commercial banks – for 1 billion soms.
In addition, the entire profit of the National Bank for 2019 in the amount of 2.5 billion soms in July was directed to support the state budget, including 10% – about 256 million soms – to create a government reserve to support the country’s financial sector.
Tolkunbek Abdygulov added that the international reserves of the National Bank reached a historical maximum, amounting to $2,769 billion.
The growth of reserves is primarily associated with the policy pursued on purchase of gold on the domestic market for the national currency.
In addition, according to the previous recommendations of the National Bank in terms of providing relief to borrowers, financial and credit organizations, as of July 30, have restructured 201,277 loans for a total of 77 billion soms.
On August 12, the National Bank adopted a resolution on a special regulatory regime to create conditions for the introduction of innovative services and technologies in the banking and payment systems, reduce the cost and increase the availability of banking services, as well as ensure the transparency of the process of their provision.
President Sooronbai Jeenbekov noted the special role of the National Bank in maintaining macroeconomic stability. He also emphasized the importance of maintaining the stability of the financial and banking system, purchasing power of the national currency amid the continuing risks in connection with the coronavirus pandemic.
The head of state noted the importance of expanding digital banking services in all regions and drew attention to the provision of remote areas with POS terminals and ATMs.
According to the Chairman of the National Bank, there is a reluctance of certain representatives of local authorities in the regions to take financial responsibility, which prevents installation of ATMs. Tolkunbek Abdygulov assured that work was being carried out in this direction together with the government, the existing issues will be resolved.
The head of state also drew attention to the elaboration of a mechanism for additional support for business in the form of issue of soft loans.
In addition, he noted that the National Bank should continue the policy of increasing the country’s gold and foreign exchange reserves, intensify work on digitalization of banking services, which was especially important in the current situation.
President Sooronbai Jeenbekov stressed the need for a detailed analysis to develop effective measures to further stimulate the country’s economy. (24.kg/Business World Magazine)