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Investments Finance Kyrgyzstan Banking Central Asia Economy Asian Development Bank

ADB Allocates $56 Million for Sewage Treatment Plant to Protect Issyk-Kul

The Asian Development Bank (ADB) has agreed to allocate money for the construction of a sewage treatment plant in Cholpon-Ata, Kyrgyzstan's main resort city on the northern shore of the high-mountain Lake Issyk-Kul, which is the crown jewel of the Kyrgyz tourism industry. . According to the State Agency of Architecture and Construction, the ADB will allocate $31 million in the form of a grant and $25 million as a soft loan for the construction of a sewage treatment plant with a capacity of 14,200 cubic meters per day. The funds will also be used to build 18 sewage pumping stations, 45km of main sewers, and 109km of intra-square sewage networks in the city of Cholpon-Ata. "To date, the design and cost- estimate documentation for the sewage treatment plant, two main pumping stations and sewage collector in the city of Cholpon-Ata, and tender documents for them, [have been] sent for consideration by the Asian Development Bank," reported the press service of the State Construction Committee. The agency emphasizes that all local guest houses, sanatoriums and resorts will be able to connect to the central sewage system. Environmentalists have repeatedly warned of unfavorable ecological degradation of the waters of Lake Issyk-Kul, because of hundreds of hotels located in the coastal zone. Today, most sewage treatment facilities in the coastal towns of Balykchy, Karakol and Cholpon-Ata are out of operation. Those sewage systems were put into operation in the 1960s or 1970s, and received little maintenance or upkeep.

Finance Kyrgyzstan Banking Central Asia Legislation Economy

National Bank of Kyrgyzstan Slashes Its Key Lending Rate, Explains Move Amid Weaker Inflation

Kyrgyzstan's national bank has lowered its discount lending rate by 200 basis points to 11%, from 13% previously. As reported by the Kyrgyz National Bank's press service, its monetary policy since the beginning of 2022 has focused on limiting the growth of inflationary pressures and ensured stabilization of price dynamics in the country, which led to slower price growth and bringing current inflation within the medium-term target and reducing the level of inflationary expectations of economic entities. Under these conditions, the National Bank decided to reduce the size of the discount rate to 11%. "Inflationary processes in the Kyrgyz Republic continue to weaken. The indicator of annual inflation in April 2024 amounted to 5.2 percent, down from 7.3 percent in December 2023, and is near the lower boundary of the medium-term monetary policy target of 5-7 percent. [Within] the structure of inflation, a pronounced slowdown in price growth is observed in the food group of goods (to 1.1 percent in April 2024 from 3.4 percent in December 2023), which is also influenced by the decline in prices in world food markets. The growth rate of prices for non-food goods and services is decreasing, with more restrained dynamics," explained the bank. In Kyrgyzstan economic activity is robust. Real GDP growth in the first quarter (January-March) of 2024 amounted to 8.8%. As before, the main contributions to economic growth came from the services sector, construction and manufacturing industries. Domestic consumption remains elevated, including at the expense of growth in consumer lending, and is helped along by an increase in net inflows of remittances into the country as Russia's acute worker shortage due to its war in Ukraine helps Central Asian migrant laborers. Despite the persistence of uncertainty in the external economic environment, there is a decrease in the intensity of the influence of external inflationary factors, the National Bank said. "The country's banking sector remains stable and demonstrates growth of key indicators. In general, commercial banks have sufficient liquidity, which creates the basis for further lending to the real sector of the country. In the money market, short-term interest rates continue to be formed within the interest rate corridor set by the National Bank. The domestic foreign exchange market is stable. The adopted decision corresponds to the course of the National Bank's monetary policy, aimed at maintaining price stability in the country and creating conditions for macroeconomic stability," the central bank's press service summarized.

Export/import Finance Investments Central Asia Afghanistan Economy Uzbekistan

Uzbekistan Signs More Export Contracts With Afghanistan

Uzbekistan has agreed to sign export contracts worth $44 million with Afghanistan, according to a report by the Chamber of Commerce and Industry of Uzbekistan. The contracts were signed during a three-day visit to Tashkent by a delegation of Afghan businessmen. The two nations are also planning to form an Uzbekistan-Afghanistan Business Council, which will have 18 Afghan companies among its members. Afghanistan's import market is worth $7 billion. The goods that are most in demand with Afghan importers are agricultural products, processed food, textiles, leather, electrical components and construction materials.

Finance Kyrgyzstan Central Asia Legislation Army

Kyrgyz Servicemen Will Be Allowed to Buy Their Military Housing

A new law in Kyrgyzstan allows military personnel who have served in the Kyrgyz army for more than 20 years to purchase their government-issued housing for temporary use. Additionally, families of servicemen killed in the line of duty -- and former members of the military themselves -- can submit claims for housing. The state-assigned apartment can be bought out, or, under certain conditions, can be obtained free of charge. "To military servicemen, dismissed to the reserve or retired by age, health, redundancy or family and other important circumstances and having a length of service of 20 calendar years or more, as well as family members of a serviceman who died or died in the performance of military service, occupied or provided them with service apartments at their chosen place of residence are transferred to personal ownership free of charge," reads the text of the law. The issue of service housing had previously been raised by the Ministry of Defense. The ministry believed that employees should be able to own their state housing during their service, and not only upon retirement. The ministry says it believes the legislative changes will raise the status of the Kyrgyz army. According to official data, more than 3,000 military personnel live in cramped conditions in the country. The authorities pay rent compensation to such service members in the amount of $100 per month.

Economy Export/import China Central Asia Kazakhstan Investments Finance

Kazakhstan Has Become Main Trade Partner of China’s Xinjiang Province

According to Chinese Customs Service data from the first quarter of 2024, Kazakhstan became the main trade partner of China's Xinjiang Uygur Autonomous Region. Since the beginning of the year, Xinjiang has conducted trade with 193 countries and regions of the world. The volume of imports and exports with Kazakhstan and Kyrgyzstan in currency terms has increased by 58.8% and 1.9% respectively. The volume of foreign trade originating from Xinjiang since the beginning of 2024 has increased by 42.7% year-on-year and reached about $13.2 billion. That puts Xinjiang in second place in China in terms of trade growth at the provincial level. Imports of agricultural products specifically increased by 36%. According to the General Customs Administration (GCA) of China, last year the trade turnover between Kazakhstan and Xinjiang increased by 63% and reached $20.3 billion. In the first half of 2023 China became Kazakhstan's main trading partner, displacing Russia. China supplies the country with cars, computers and laptops, plastics and plastic products -- and from Kazakhstan imports oil, natural gas, uranium, ferroalloys, mined ores and concentrates and oilseeds.

World Bank Loans & Grants Uzbekistan Economy Central Asia Finance

World Bank Helps Uzbekistan With Digital Inclusion Project

The World Bank has given Uzbekistan a soft loan of $50 million to grow its digital economy. The loan will help employ about 9,000 young people -- including 4,500 women and 360 persons with disabilities -- in IT-related services. The funds will also be used to create 11 IT service centers, and train 6,200 people in digital skills, communication and foreign languages. The program, which will run until 2029, foresees the creation of a legislative framework in the IT sphere. The IT sector's contribution to Uzbekistan's GDP remains insignificant -- it was just 1.9% in 2022.