Government approves bill to receive $50 million from ADB to mitigate COVID-19 impacts

AKIPRESS.COM - The government of Kyrgyzstan approved the draft law on ratification of the loan and grant agreements with the Asian Development Bank (ADB) of $50 million to help the government mitigate the significant negative health, social, and economic impacts of the novel coronavirus disease (COVID-19) pandemic.
The agreements were signed on May 5, 2020.
Delivered under ADB's COVID-19 Active Response and Expenditure Support (CARES) program, the funds will support the government's immediate priorities to contain the spread of the pandemic, ensure social protection for vulnerable segments of society, and deliver a pro-poor fiscal stimulus to safeguard small and medium-sized enterprises (SMEs) and the economy's productive sectors.
On 24 March, the Kyrgyz Republic declared a state of emergency and initiated measures to prevent further spread of the pandemic, including border closures and restrictions, restrictions on movements, and temporary closure of businesses. The pandemic has led to widespread job losses, particularly in industry and the service sector, which together account for 70% of all employment.
Among the 1.8 million people identified by the government as particularly vulnerable to the pandemic, around 22% are women-headed households who will need direct social protection during the economic downturn. Women are also overrepresented in the health and services sectors, at 87% and almost 60% respectively, and make up around 30% of the country's SME owners and employees.