Press Release No. 14/514

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

November 12, 2014

An International Monetary Fund (IMF) mission led by Mr. Edward Gemayel visited Bishkek from October 29 to November 11 to hold discussions on an economic reforms program to be supported by an arrangement under the Extended Credit Facility (ECF). At the end of the visit, Mr. Gemayel issued the following statement:

“Growth in the Kyrgyz Republic is projected to slow to about 3 percent this year, with inflation increasing to about 10 percent, mainly due to adverse regional developments. The economic situation in Russia and Kazakhstan is reducing growth of workers’ remittances and putting pressure on the exchange rate. The tightening of border controls earlier this year has had a negative impact on cross-border trade and re-exports from China. Dry weather conditions reduced both agricultural and hydro-electric power production. The outlook remains sensitive to a further slowdown in the region.

“The authorities are developing an economic reform program that appropriately aims at strengthening and diversifying the economy, enhancing macro-economic stability, and sustaining the development of the financial sector. It also includes structural reforms to build strong institutions and sustain inclusive growth.

“The mission held productive discussions with the authorities on a possible IMF program that would support these reforms. We plan to remain in close contact with the authorities as they finalize the planned measures in the reform program to achieve their goals. A follow up mission is expected to return to Bishkek in the coming period to continue discussions.

“During its visit, the mission met with Prime Minister Djoomart Otorbaev, Speaker of the House Asylbek Jeenbekov, Chairman of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov, Minister of Finance Olga Lavrova, Minister of Economy Temir Sariev and other officials. The mission also met with members of parliament, representatives of the banking sector and the diplomatic and development partner community.

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