Kyrgyzstan’s economic week June 3 – 8, 2019

No energyexport. Kyrgyzstan will not export electricity this year.
Islanbek Sarseyitov, acting Director General of Electric Stations OJSC said that the main reason is the beginning of the low water cycle in Kyrgyzstan.
"There is an exchange of goods with Kazakhstan. That is, we export 270 million kWh of electricity from June 5 to August, and they return it to us from September to November," he said.
As for Uzbekistan, last year Kyrgyzstan exported 700 million kWh. "However, this year there will be no export due to the small volume of water," Sarseyitov said.
Forum with the Belgians. The Chamber of Commerce and Industry of the Kyrgyz Republic held a Kyrgyz-Belgian business forum. It was attended by representatives of 11 largest Belgian companies that are committed to build partnerships with Kyrgyz entrepreneurs.
First of all, guests-businessmen were interested in companies in the Kyrgyz Republic, which carry out their activities in the production of energy-efficient technologies, film screening equipment, the aerospace industry, educational services, ice-cream production, the confectionery industry, cosmetology, agricultural products processing, technology for water pipes and sewers, the construction industry, etc. .
Since 2014, there has been a positive trend in trade and economic relations between the two countries. Last year, Kyrgyzstan exported goods from Belgium worth more than EUR 18 million, while imports amounted to EUR 0.5 million.
Ministry of Finance online. The Ministry of Finance of the Kyrgyz Republic, within the framework of the process of preparing the draft republican budget for 2020, launched online appeal and support of citizens services.
With the help of these services, readers can get the opportunity to write an appeal to the ministry in real time and get answers to their questions. In addition, through these services, citizens can leave their proposals and comments on the draft republican budget for 2020–2022, as well as on the substantive part of the budget for the next fiscal year.
These information services are designed to ensure budget transparency, create conditions for citizen participation in the budget process, study public opinion and receive proposals and recommendations within the framework of the Year of Regional Development and the Digitalization of the country.
Korea-Kyrgyzstan. This week, Minister of Economy of the Kyrgyz Republic Sanjar Mukanbetov held talks with Ambassador of the Republic of Korea to the Kyrgyz Republic Ha Tae-yeok and discussed issues of trade, economic and investment cooperation.
Ambassador Ha Tae-yeok noted that the Government of the Republic of Korea is promoting the New Northern Policy initiative aimed at developing relations with the countries in the northern direction, including the countries of Central Asia, and within the framework of this policy Kyrgyzstan is important for South Korea.
Public procurement in electronic form. In Kyrgyzstan, bidders for public procurement, that is, suppliers of goods and services, can now receive information (certificate) about the absence of tax debt in electronic form.
Thanks to the automated system, bidders in public procurement no longer need to visit the tax authority, since they will receive information on tax debts online when forming a tender application through the Government Procurement Portal.
News from Bailyk Finance. The micro credit company Bailyk Finance together with the Ak-Bulak and Ak-Zhalga dairy plants in Issyk-Kul oblast, with the support of the International Finance Corporation (IFC), a member of the World Bank Group, launched a new program for financing agricultural value chains. In May 2019, Bailyk Finance began active financing of farmers for the purchase of dairy cows, equipment, construction and repair of barns and other operational needs related to milk production.
Under this project, each of the parties agreed to combine their efforts to introduce comprehensive financing for all participants — farmers, milk collectors, cattle suppliers, feed, equipment, etc. For the implementation of this program, financing is provided from two sources depending on the loan amount: 1) allocation of credit resources to the Kyrgyz-Russian Fund on preferential terms, the final interest rate of the loan in national currency for farmers will be 14% per annum; 2) from the Company's own funds - from 32% per annum in national currency.
Sale of tokens. This week, Central Asia International sold tokens Development for the first time in Kyrgyzstan. Tokens are digital assets acquired by an investor for money or a certain digital currency.
As a result of the sale in less than 2 minutes 1,000,000 CAD were bought. Then in the next 30 seconds, the next 1 million CAD was sold.
Payment instrument in exchange for CAD is the digital currency USDT (Tether).
Sale of mineral resources. Till the end of 2019, the State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic plans to hold 7 tenders for the development of deposits.
Deputy Chairman of the State Committee Karybek Ibraev said that, according to the new Law of the Kyrgyz Republic on Subsoil, documents for the competition were sent to the Government of the country.
"In particular, this year we are planning two coal deposits in Sulukta and Tuyuk-Kargash. Sulukta has 80 million tons of coal, the estimated amount of the competition is USD 8 million. There are 35 million tons in Tuyuk-Kargash. We also plan to bid for the development of a gypsum deposit with a margin of 2 million tons, the sum of USD 132 thousand is being set. This is an estimated amount, conditions will still be improved," he explained.
Ibraev added that in addition to this, it is planned to hold a competition for the development of the Togolok gold deposit in Issyk-Kul oblast with reserves of 17 tons in the amount of USD 24 million.
According to data of the Deputy Chairman of the State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic Myrza Zhamanbayev, in total 2,400 licenses have been issued in Kyrgyzstan.
Gold licenses. In Kyrgyzstan, 470 gold development licenses were issued during the year.
"Of these, 106 licenses have been issued for the development of iron deposits, 327 for coal, 145 for mining and oil, 59 for gas and oil, 413 out of 2,400 development licenses, 917 for exploration, 163, returned refusal - 134, voluntarily returned - 7, satisfied - 2, not considered - 2," he said.
In addition, according to Zhamanbaev, 69 permits for blasting drilling operations were issued in 2019.
New enterprises. Construction of two new enterprises has began in Kyrgyzstan in 2019.
Deputy Chairman of the State Committee for Industry, Energy and Subsoil Use, Myrza Zhamanbayev said that, the work is currently underway on the construction of industrial facilities of the Kyrgyz Textile LTD LLC in Osh.
In addition, the construction of the logistics center of Industrial Park Silk Way has started in the village of Leninskoye, Chui oblast.
"The total area of ​​the object is 10 hectares. There will be offices, warehouses, parking for trucks and a garment factory. In the future, it is planned to build 112 specialized factories for the production of clothing, textile and footwear products with a total area of ​​70 hectares, where large enterprises will operate. Also, there will be individual entrepreneurs operating on a patent basis," the deputy chairman added.
Relief to farmers. Entrepreneurs who export agricultural products (fruits, vegetables, etc.) to Kazakhstan and other countries are exempt from VAT, sales tax, income tax and property tax.
Deputy Minister of Economy of the Kyrgyz Republic Dastan Kadyrov said that, in accordance with the Tax Code of the Kyrgyz Republic the following requirements are imposed on such entrepreneurs:
- the activity should be directed to the sale of domestic agricultural products and their products;
- entrepreneurs should own or use the land with industrial, administrative, warehouse and other buildings, premises and facilities for sorting, calibration, storage, labeling, packaging, transportation, processing of agricultural products, agricultural products.
Kabar News Agency