Economic week of Kyrgyzstan – July 1 - 6, 2019

Money of development funds. There are 43 regional development funds in Kyrgyzstan, funded by companies developing fields.
During the first business forum "Local communities and mining companies", head of the regional development department of the Ministry of Economy of the Kyrgyz Republic Mirbek Kalmurzaev said that 36 of them are regional funds, 7 are oblast.
"Basically, funds were spent for the implementation of 425 projects. In particular, these are projects related to the construction and repair of buildings, structures of the social sphere, that is, schools, kindergartens, rural health posts. In addition, it is the construction of roads, the preparation of master plans, the issues of conducting clean drinking water, irrigation and also issues related to lighting of the territories and providing Internet in the villages," he said.
IMF’s forecast. The International Monetary Fund announced its forecast concerning the economy of Kyrgyzstan in 2019 and predicted a growth of 3.8%.
On June 7, 2019, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with the Kyrgyz Republic.
The economy has experienced moderate growth of 3.5 percent in 2018, benefiting from a benign regional environment. Core inflation has declined, and lower food prices have pushed headline inflation to 1.5 percent on average. The current account deficit of the balance of payments weakened to 8.7 percent of GDP while gross official foreign exchange reserves declined to the still adequate level equivalent to four months of imports of goods and services.
Development program. The Ministry of Economy of Kyrgyzstan submitted a draft government decree "On approval of the program of the Government of the Kyrgyz Republic on the development and support of small and medium-sized businesses in 2019-2023" for public discussion.
According to the document, the draft Program was developed in order to assist in the development of entrepreneurship in the regions, creating favorable conditions for doing business.
The main objectives and directions for the development and support of small and medium-sized businesses in the Kyrgyz Republic for 2019-2023 will be the continuation of the measures stipulated by the country's strategic documents, including the National Development Strategy of the Kyrgyz Republic for 2018-2040, the Decree of the President "On declaring 2019 the Year of Development and Regions and Digitalization", Program of the Government of the Kyrgyz Republic "Development Program of the Kyrgyz Republic for 2018-2022 "Unity.Trust. Creation".
Trade Office in Seoul. Kyrgyzstan Trade Office is opened in the South Korean capital of Seoul to enhance trade and economic cooperation between Kyrgyzstan and the South Korea.
The office was established at the initiative of the Embassy of the Kyrgyz Republic in the Republic of Korea with the assistance of South Korean entrepreneur Kim Jin Won, who expressed his intention to promote Kyrgyz products on the Korean market and provided premises for free use.
Ambassador of the Kyrgyz Republic in South Korea Dinara Kemelova, speaking at the opening ceremony of the office, noted the noticeable popularity of the Kyrgyz pavilion at the Seoul international exhibition Import Goods Fair that took place these days and expressed hope that in the near future Kyrgyzstan's products will be sold in large shopping centers of Korea with a population of over 50 million people.
Patent is not for importers. It became known that importers, except for subjects of the clothing and textile industry, are not eligible to receive a patent for economic activity. This decision was made by the State Tax Service of the Kyrgyz Republic.
"In accordance with the norms of the Tax Code of the Kyrgyz Republic, individuals who import goods, with the exception of subjects of the sewing and textile industries, do not have the right to apply the tax regime on the basis of a voluntary patent," the State Tax Service explained.
The Government of the Kyrgyz Republic, by its resolution, made changes to the procedure for issuing a patent in the tax authorities on paper or in electronic format to bring it in line with this tax law.
Preferences for new. Preferential taxation is provided for new industrial enterprises opened after January 1, 2019 in preferential settlements in Kyrgyzstan.
The Decree of the Government of the Kyrgyz Republic of April 24, 2019, where preferential settlements have been defined and the list of preferential types of industrial activity has been approved, is aimed at creating favorable conditions for investors who are ready to invest in new preferential industrial enterprises.
In accordance with the decree, preferential taxation provides for exemption from the payment of 4 types of taxes: sales tax, income tax, land tax and property tax.
Trade with EU. On the results of 2018, the trade turnover between Kyrgyzstan and the European Union reached a record figure of USD 1 billion, Minister of Foreign Affairs of the Kyrgyz Republic Chingiz Aidarbekov told after the talks with High Commissioner for Foreign Affairs and Security Policy of the European Union Federica Mogherini.
He said that exports of Kyrgyz products to the EU increased threefold and amounted to more than USD 750 million.
Aidarbekov expressed hope for the speedy signing and entry into force of the new Agreement and its effective implementation.
Kabar News Agency