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Kyrgyzstan’s economic week – Nov. 5-10, 2018

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EU projects. From 2015 to 2020, the European Union will finance projects in Kyrgyzstan in the amount of €174 million.

Nicola Scaramuzzo, Head of the Cooperation Section of the EU Delegation to the Kyrgyz Republic said that these funds will be allocated to such areas as law enforcement, education and development.

“In addition, we have additional funding of a regional nature, which includes all five Central Asian countries. Regarding the future, it is difficult to say, discussions are being held in Brussels,” he said.

Currency intervention. A major currency intervention was made this week by the National Bank of the Kyrgyz Republic, which was caused due to the growth of the dollar exchange rate. On November 5, the regulator sold $ 10 million 850 thousand.

The dollar has risen slightly in Kyrgyzstan over the past few days.

The official exchange rate of the dollar on November 6 established by the National Bank was 69.83 soms.

Results of development. Minister of Economy of the Kyrgyz Republic Oleg Pankratov at a meeting of the Government of the Kyrgyz Republic spoke about the results of the socio-economic development of the republic in the first nine months of 2018. He said that the development of the economy during this period took place against a background of a significant slowdown in economic activity in the countries - the main trade partners of the Kyrgyz Republic, in conditions of maintaining geopolitical risks, instability in financial markets and the beginning of trade wars between the largest economies in the world.

The decline in world trade and the slowdown in the Chinese economy due to tough US protectionism, the strengthening of sanctions against the main strategic partner of the Russian Federation and the long collapse of currencies in emerging markets led to an increase in capital outflow from Russia in 2018.

The fate of Junda. The work of the joint Kyrgyz-Chinese Junda refinery has been suspended.

Minister of Economy of the Kyrgyz Republic Oleg Pankratov said that at the moment there is a critical situation at the plant related to court decisions and additional tax payments. All these trials worsen the situation and adversely affect the image of the country.

About GSP + preferences. The European Union Delegation in Kyrgyzstan told about what Kyrgyz entrepreneurs need to know for export of goods to EU countries.

In particular, any company wishing to export relevant goods from Kyrgyzstan to the European Union can benefit from GSP + preferences. To export goods under this scheme, one must fulfill the following three conditions:

- goods must be produced and processed in the Kyrgyz Republic - the GSP + beneficiary country;

- during transportation from Kyrgyzstan to the EU, the goods should not be altered, transported or subjected to operations not related to their preservation in good condition;

- It is necessary to provide a valid confirmation of the document proving that the goods are produced in the Kyrgyz Republic.

Trade with the EU. Trade between Kyrgyzstan and the countries of the European Union in 2017 amounted to €458 million.

According to data of the European Union office in the Kyrgyz Republic, in 2015 this figure was $ 320 million. This indicates that bilateral trade is growing.

Sewing week. Kyrgyz Textile & Clothing Week 2018 is held in Bishkek is held from November 7 to November 16. It is planned to hold a Fashion Week and a high-level forum within its framework. This is the first large-scale event in Kyrgyzstan dedicated to the development of the textile and apparel sector.

As part of Kyrgyz Textile & Clothing Week 2018 an exhibition-fair of garments products of local manufacturers is also held at the Sports Palace in Bishkek. Kyrgyz companies presented their products - clothes, shoes, accessories, fabrics.

A Fashion Week will be held at Jannat Hotel in Bishkek. Within its framework, there will be a competition for young designers “The Next Fashion”, as well as a competition among industrial companies “Fashion Brand”. In addition, an exhibition of handicrafts and a competition of designers of handicrafts "Altyn toos" will be held.

Transfers of migrants. Kyrgyzstanis working abroad transferred home $ 1.4 billion in the first 8 months of 2018. The increase made 7.5%.

According to information of Oleg Pankratov, Minister of Economy of the Kyrgyz Republic, a significant depreciation of the Russian ruble against the US dollar has recently been observed. This may affect the amount of remittances in dollars. The minister explained that while in January-August, net remittances amounted to $ 1.4 billion.

According to the minister, the economy of Kyrgyzstan as a whole for the first 9 months, after a slight decline in July-August, showed a positive growth trend. The real GDP growth rate was 1.2% with a nominal volume of 368.4 billion Som (in January-September 2017, real GDP growth was 4.3%). Excluding enterprises developing the Kumtor deposit, the real GDP growth rate was 102.4%.

Services have risen in price. Tariffs for services increased in Kyrgyzstan in September 2018 by 5.3% compared with December of the previous year. These data were published in the magazine “Prices in the Kyrgyz Republic” by the National Statistics Committee of the Kyrgyz Republic.

According to the document, the services of air passenger transport increased (1.6 times), cellular communications (by 16.7%), services for the organization of cultural events (by 5.0%), outpatient services (by 4, 4%) and hairdressing services (by 3.0%).

EU money for the Kyrgyz Republic. Supporting effective water management is one of the priorities of development cooperation between the European Union and Kyrgyzstan.

According to the EU office in the Kyrgyz Republic, as of now, the EU Investment Fund for Central Asia (EU IFCA) has allocated € 54 million in the form of grants for water-related projects in Kyrgyzstan for the general rehabilitation of water supply, treatment and sewerage systems.

EU and radioactive waste. At the international donors’ conference on nuclear remediation in London, the European Union has announced additional €10 million, in order to support its partners in Central Asia in dealing with toxic and radioactive waste in the Kyrgyz Republic, Tajikistan and Uzbekistan. This comes on top of the €16 million, which the EU had already contributed to this end.

The EU is leading the implementation of the sustainable remediation programme in the region. For more than 10 years it has worked on feasibility studies and environmental impact assessments, with an initial investment of around €14 million. Work has been carried out in close collaboration with the Governments concerned, the International Atomic Energy Agency (IAEA) and the UN Development Program (UNDP).

Kabar News Agency

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