Kyrgyzstan’s economic week - May 20 – 25, 2019

Korean customs in the Kyrgyz Republic. A delegation of the National Tax Service of the Republic of Korea headed by Commissioner of the Service Han Seung Hwee visited Kyrgyzstan and held talks with the leadership of the State Tax Service of the Kyrgyz Republic.
At the talks, the heads of the fiscal authorities of the two countries discussed issues of bilateral cooperation and exchanged experiences on the development of national tax systems.
The Kyrgyz side presented a draft electronic system for fiscalization of tax procedures. Korean tax officials also talked about the work of their national tax service in terms of providing electronic services to taxpayers using various systems and modern technologies.
Electric car plant. Currently, the Investments Promotion and Protection Agency negotiates with two companies from China for the production of electric vehicles in Kyrgyzstan.
Director of the Investments Promotion Agency Shumkarbek Adilbek uulu told said that negotiations with representatives of the Chinese automotive corporation BAIC GROUP have been conducting since last summer.
"They visited Kyrgyzstan several times and held talks with relevant departments. Today, there is a discussion about the possibilities of creating the necessary infrastructure," he said.
He noted that the cost of electric cars plays an important role in the negotiations with the delegation of the corporation, because the cost of electric cars is quite high, but the Agency continues to defend the interests of Kyrgyzstan.
"In addition, we are working with another company, which also produces electric vehicles, buses, internal combustion engines," the Agency director added.
Opening of new enterprises. Eight new sites for the production of cement, grinding bodies, milk and meat, cashmere fiber, gloves, textiles and metallurgical products will be opened in Kyrgyzstan until the end of this year.
Shumkarbek Adilbek uulu, the Director of the Investments Promotion and Protection Agency said that the work on launching the listed projects was carried out for more than a year, and with the successful completion of the agreements reached on them, all of them will start their production facilities by the end of 2019.
A plant for the production of household bimetallic radiators on the territory of the Bishkek FEZ was launched last week. In general, this year it is planned:
- completion of the construction of a plant for the production of grinding bodies in the Kara-Balta subzone in the territory of the Bishkek Free Economic Zone;
- the opening of a plant for the processing of milk and meat in Issyk-Ata region;
- launch of a project for the production of cashmere fiber in the territory of the Bishkek FEZ;
Export to Russia. During two months, Kyrgyz exporters managed to send to the regions of Russia about 205 thousand tons of their products under the new agreements that were signed following the VIII Russian-Kyrgyz interregional conference.
This week it became known that according to the concluded contracts, four companies of Kyrgyzstan could already begin to realize their capabilities.
Two companies supplying trout provided export to the Russian Federation at 60 tons of products. The textile company supplied 25 tons of products, and the dairy company exported 60 tons of cheese.
Deliveries to Gulf. Kyrgyzstan expanded its export coverage to countries of the Persian Gulf. Two shops of domestic honey and dried fruits were opened in Doha, Qatar. This was made possible by the joint work of the Embassy of the Kyrgyz Republic in Qatar and the Investment Promotion and Protection Agency.
In addition, a trading house was opened in Andijan with the assistance of the Embassy of Kyrgyzstan in Uzbekistan, which sells domestically produced goods for 10 million people in the region.
Financial Supervision about Investments. The debut IPO (initial public offering) will be a positive signal in the development of the country's capital market, Deputy Chairman of the State Service for Financial Market Regulation and Supervision of the Kyrgyz Republic Myktybek Abirov believes.
He said that today the international capital market is experiencing a fast pace of development of financial instruments issued by both states and corporate companies. "One of the most popular large-scale segments of the securities market are Eurobonds and IPO. In this regard, I would like to draw attention to the possibility of issuing Eurobonds, which can become part of the state strategy to attract foreign investments in the national economy and develop the domestic stock market, which in turn contributes to the implementation of large national projects, "said Abirov.
EBRD and loans from the Kyrgyz Republic. Two new agreements were signed this week in Bishkek between the Government of Kyrgyzstan and the European Bank for Reconstruction and Development, totaling over EUR 13 million.
The documents were signed during the forum "Clean Water for the Regions", which was held in Bishkek with the participation of the President of the Kyrgyz Republic, Minister of Finance of the Kyrgyz Republic Baktygul Zheenbayeva and President of the EBRD Suma Chakrabarti.
The agreement on the rehabilitation of water supply systems in local government Myrza-Ake, Kurshab and Don-Bulak (Osh oblast) and the Agreement on improving the water supply system in the city of Jalal-Abad were signed.
The first agreement provides for a loan of EUR 2 million from the EBRD and a grant of EUR 3 million by the EU to support priority improvements in the water supply of three villages in Osh region: Myrza-Aka, Kurshab and Don Bulak, where more than 80 thousand people live.
The second Agreement provides for an EBRD financial package, which includes a loan of EUR 4 million and a grant of EUR 4.1 million to finance the second phase of the water project in Jalal-Abad.
Credit funds are allocated for a period of 15 years.
New workplaces. Almost 1.7 thousand new jobs were created at enterprises, organizations and institutions in Kyrgyzstan, in January-March 2019.
According to data of the National Statistics Committee of the Kyrgyz Republic, one third of them (517 places) are opened in small enterprises.
The largest number of new jobs (19%) was created in the field of education, about 17% in the areas of trade, financial intermediation and insurance.
Kabar News Agency