IMF Executive Board Approves a US$121.1 Million in Emergency Assistance Under the Rapid Financing Instrument and Rapid Credit Facility for the Kyrgyz Republic to Address the COVID-19 Pandemic
May 8, 2020
- The Executive Board of the IMF approved US$ 121.1 million in emergency assistance to the Kyrgyz Republic. This is the second IMF emergency loan under the RFI/RCF for the Kyrgyz Republic since the outbreak of the pandemic:
- The IMF emergency support addresses the urgent balance of payments need, shores up confidence, and catalyzes donor support.
- To ensure that the financing provided is efficiently spent on addressing the crisis, the authorities have committed to strengthen procurement rules.
Washington, DC –
The Executive Board of the International Monetary Fund (IMF) approved a
purchase of the Kyrgyz Republic under the Rapid Financing Instrument (RFI)
equivalent to SDR 59.2 million (US$ 80.7 million, 33 percent of quota) and
a disbursement under the Rapid Credit Facility (RCF) equivalent to SDR 29.6
million (US$ 40.4 million, 17 percent of quota) to meet the urgent balance
of payment needs stemming from the outbreak of the COVID-19 pandemic.
This is the second IMF emergency assistance under the RFI/RCF for the
Kyrgyz Republic since the outbreak of the pandemic: on March 26, 2020, the
IMF Executive Board approved a disbursement of US$ 120.9 million (see
IMF Press Release
No. 20/115) before it doubled the access of the annual access on emergency
financing under the “exogenous shock” window of the RCF to 100 percent of
quota on April 6, 2020 (see
IMF Policy Paper No. 20/018
). This additional disbursement brings the total IMF emergency loan to the
Kyrgyz Republic to address the COVID-19 pandemic to US$ 242.0 million.
The outbreak of the pandemic has weakened the macroeconomic outlook and
opened a balance of payments gap estimated at about US$500 million. There
is an unprecedented high level of uncertainty surrounding this projection.
The IMF emergency support will finance health and economic relief, shores
up confidence, and catalyzes donor support. To ensure that the financing
provided is efficiently spent on addressing the crisis, the authorities
have committed to strengthen procurement rules.
Following the Executive Board discussion, Mr. Tao Zhang, Deputy Managing
Director and Acting Chair, made the following statement:
“The COVID-19 pandemic has hit the Kyrgyz economy very hard and
increased an already urgent balance of payments need. All
sectors are being severely affected while measures are being taken to stop
the spread of the virus. Given the unprecedented high level of uncertainty,
IMF emergency support under the Rapid Financing Instrument and the Rapid
Credit Facility is expected to help finance health and economic relief, shore up
confidence, and catalyze donor support. Expeditious additional donor
support is needed to close the remaining balance of payments gap and ease
the adjustment burden. In this context, the authorities’ intention to apply
for the Debt Service Suspension Initiative, supported by the G-20 and Paris
Club, and use released resources to finance spending on COVID-19 related
health or economic relief, is welcome.
The health care contingency plan and the initial package of economic
measures already adopted by the authorities to provide health and economic
relief are welcome, as is the second, larger, package of measures under
To ensure that financing provided is efficiently spent on addressing the
crisis, the authorities will strengthen public procurement rules
by publishing an ex-post validation of delivery along with the name of
awarded companies and their beneficial owner(s) for all public
IMF Communications Department
PRESS OFFICER: Nadya Saber
Phone: +1 202 623-7100Email: MEDIA@IMF.org