Left Menu
Development News Edition

IMF approves $120.9 mln disbursement for Kyrgyzstan to fight coronavirus

Reuters | Updated: 27-03-2020 10:50 IST | Created: 27-03-2020 09:37 IST
IMF approves $120.9 mln disbursement for Kyrgyzstan to fight coronavirus
Representative Image Image Credit: ANI

The International Monetary Fund said on Thursday its board has approved a $120.9 mln disbursement for Kyrgyzstan to help the Central Asian country fight coronavirus, the first emergency loan approved by the Fund since the outbreak started.

Kyrgyzstan has confirmed 44 cases of the disease, prompting the government to close borders, lockdown several cities and districts and impose a curfew in the capital, Bishkek. The IMF said the disbursement consists of an $80.6 million loan under the Rapid Financing Instrument program and a $40.3 million loan under the Rapid Credit Facility to meet Kyrgyzstan's urgent balance of payment needs stemming from the crisis.

It added that the pandemic "has weakened the outlook for the Kyrgyz Republic and opened a balance of payments gap estimated at about $400 million." Kyrgyzstan's economy relies heavily on remittances from hundreds of thousands of migrant laborers working in Russia whose incomes will be affected by the drop in the price of oil and rouble's exchange rate.

Export revenue, especially that from re-exporting Chinese goods, could also take a hit due to coronavirus-related disruptions and border closures. The Kyrgyz som has lost more than 12% of its value against the dollar this month and this could send inflation into low double digits this year, mission chief Christian Josz said. The economic growth outlook is "slightly positive", he said.

Kyrgyzstan will need more financial aid and the Fund hopes the move will catalyze broader donor support, Josz said. IMF Managing Director Kristalina Georgieva said earlier this week that more than 80 countries have sought IMF rapid financing assistance to help them deal with the coronavirus outbreak.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION / BLOG / INTERVIEW

Energy markets post-COVID 19: Recovery may take time, transition to continue

As oil markets have crashed, the experts believe the oil prices will come down drastically and continue making the energy transition a financial burden for many economies for a couple of years.  However, the market alone was never...

'Diya jalao' for COVID 19: Modi needs to practice his teachings and control fake news on social media

In his video message to the nation on Friday the Prime Minister talks about peoples collective power to win the invincible. However, he has made no concreate efforts to win over the confidence and represent the collective power of the polit...

Tourism post-COVID 19: Lessons learned, out-of-box strategies to ensure the revival

In the pre-COVID 19 period the tourism industry was seen with much hope throughout the world. However, the COVID 19 pandemic has completely paralysed the tourism industry and its dependent sectors. The tourism industry in the post-COVID 19 ...

Cybersecurity post-COVID 19: More internet means more threats, stay alert folks!

When supported by adequate digital awareness campaigns and more crackdowns on cybercrimes, increased internet usage will help more people embrace technology and better understand the risks, bringing us closer to unleashing the true potentia...

Videos

Latest News

OPEC+ meeting delayed as Saudi Arabia and Russia row over price collapse

OPEC and Russia have postponed a meeting planned for Monday until later next week, OPEC sources said on Saturday, as a row intensified between Moscow and Saudi Arabia over who is to blame for plunging oil prices. The meetings delay came des...

7,026 new coronavirus cases in Spain, toll reaches 11,744

Madrid Spain, April 4 SputnikANI Spain has reported 7,026 new coronavirus cases in the last 24 hours, Spanish Heath Ministry said on Saturday. Around 809 people died in the last 24 hours toll in the European country reached 11,744, Sputnik ...

Chennai, Apr 4 (PTI) Highlights from the Southern region

Highlights from the Southern region at 5.10 pm. . MDS1 KA-VIRUS-DEATH 75-year old man in Karnataka succumbs to coronavirus state death toll reaches four Bengaluru A 75-year-old man has succumbed to coronavirus in Karnatakas Bagalk...

Shining torches in sky won't solve problem: Rahul Gandhi on COVID-19

Congress leader Rahul Gandhi on Saturday made light of Prime Minister Narendra Modis appeal to people to light lamps and shine torches on April 5, saying it will not help India fight COVID-19. He claimed not enough tests are being conducted...

Give Feedback