Kyrgyz Republic: Request for Purchase Under the Rapid Financing Instrument and Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; Informational Annex; and Debt Sustainability Analysis

March 27, 2020

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Kyrgyz Republic: Request for Purchase Under the Rapid Financing Instrument and Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; Informational Annex; and Debt Sustainability Analysis, (USA: International Monetary Fund, 2020) accessed November 23, 2024

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Summary

This paper discusses Kyrgyz Republic’s Request for Purchase Under the Rapid Financing Instrument and Disbursement Under the Rapid Credit Facility. The COVID-19 pandemic has been hitting the Kyrgyz economy very hard and created an urgent balance of payments need. All sectors are being impacted with extreme severity as 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 helps provide a backstop and increase buffers and shore up confidence. It also helps to preserve fiscal space for essential COVID- 19-related health expenditure and catalyze donor support. Banks’ capital and liquidity buffers need to be used to absorb credit losses and the liquidity squeeze. Once these buffers are exhausted, the central bank needs to show flexibility on the timing of bringing capital and liquidity above the minimum required, considering the length of the crisis. Expeditious donor support is needed to close the remaining balance of payments gap and ease the adjustment burden.

Subject: Credit, Debt sustainability analysis, Economic and financial statistics, External debt, External sector statistics, Financial institutions, Loans, Monetary base, Money, Public debt

Keywords: Balance of payments gap, CR, Debt sustainability analysis, Executive Board discussion, External sector statistics, Financing gap, Global, IMF support, ISCR, Liquidity squeeze, Loans, Monetary base

Publication Details

Pages:

58
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/090
Stock No:

1KGZEA2020001
ISBN:

9781513538693
ISSN:

1934-7685

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