Kyrgyz Republic: Request for Purchase Under the Rapid Financing Instrument and Disbursement under the Rapid Credit Facility-Press Release; and Staff Report

IMF Staff Country Reports, May 12, 2020

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Canonical URL: Kyrgyz Republic: Request for Purchase Under the Rapid Financing Instrument and Disbursement under the Rapid Credit Facility-Press Release; and Staff Report

Focus: Kyrgyz Republic’s Request for Purchase Under the Rapid Financing Instrument and Disbursement Under the Rapid Credit Facility.
Date of publication: May 12, 2020.
Core problem: The coronavirus disease 2019 pandemic has hit the Kyrgyz economy very hard and increased an already urgent balance of payments need.
Scope: All sectors are being severely affected while measures are being taken to stop the spread of the virus.

Objectives of IMF support:
- Address the urgent balance of payments need.
- Shore up confidence.
- Catalyze donor support.
Design elements highlighted:
- Emergency support under the Rapid Financing Instrument and Rapid Credit Facility.
- Financing intended to be efficiently spent on addressing the crisis.

Health and economic measures:
- Health care contingency plan and an initial package of economic measures already adopted to provide health and economic relief are welcomed.
- A second, larger, package of measures is under preparation.
Policy stance in the authorities’ letter of intent:
- Committed to temporarily loosening macroeconomic and financial policies to finance health and economic relief and support a recovery.
- Additional commitments to strengthen procurement rules, including steps to enhance transparency, to help ensure that financing received is efficiently spent on addressing the crisis.

Procurement focus:
- Authorities committed to strengthen procurement rules.
- Emphasis on enhancing transparency to ensure efficient spending of IMF and donor financing.

Subject headings: Central banks, COVID-19, Credit, Debt service, External debt, Health, International reserves, Money, Public debt.
Keywords: balance of payments gap, COVID-19, CR, Credit, Debt service, donor support, enterprise, Executive Board discussion, IMF emergency support, International reserves, ISCR, procurement rule, support.