Press Release No. 15/27

Press Release: Statement at the End of an IMF Mission to Kyrgyz Republic

January 30, 2015

An International Monetary Fund (IMF) mission led by Edward Gemayel visited Bishkek from January 21-29, 2015 to continue discussions on an economic reform program that could be supported by a three-year Extended Credit Facility (ECF).

At the end of the visit, Mr. Gemayel issued the following statement:

“The economic slowdown that started in 2014 is expected to continue in 2015, driven by domestic and regional factors. Gold production is expected to drop this year, while the deepening economic crisis in Russia is expected to dampen remittances, trade, and domestic demand. As result, growth is likely to decelerate to 1.7 percent. The current account deficit will widen somewhat, largely driven by the externally financed investment projects underway. Inflation is expected to average about 10 percent, driven mainly by the depreciation of the som. The medium-term outlook remains sensitive to developments in Russia and the accession to the Eurasian Economic Union.

“The authorities discussed with the mission the medium-term challenges posed by the regional slowdown and, in this context, policies developed by the authorities for 2015 and beyond that will provide a coherent framework to maintain macroeconomic stability, achieve medium-term fiscal consolidation, strengthen the financial sector, and promote inclusive and broad-based growth.

“The mission held productive discussions with the authorities on a possible IMF program that would support these reforms. Over the next few weeks, Fund staff will remain in close contact with the authorities as the measures planned to achieve the Kyrgyz authorities’ goals are being finalized.

“During its visit, the mission met with Prime Minister Djoomart Otorbaev, Chairman of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov, Minister of Finance Olga Lavrova, Minister of Economy Temir Sariev, Chairman of the Parliamentary Committee on Economic and Fiscal Policy Karganbek Samakov, Deputy Chairman of the Parliamentary Committee on Budget and Finance Kurmanbek Dyikanbaev, and other officials. The mission also met with representatives of the banking sector and the diplomatic and development partner community.

“The mission would like to reiterate that the IMF stands ready to help the Kyrgyz Republic and its people. The mission would also like to thank the authorities and all whom it met for their warm welcome, hospitality, and productive discussions.”