Tag Archives: Coronavirus

Georiga pledges $606m to prop up economy

APRIL 1 (The Bulletin) — Georgia’s government pledged $606m to help business try to weather the impact of the coronavirus pandemic and the Central Bank said that it was relaxing its lending and capitalisation rules for smaller banks to free up another $400m.

On the $606m aid for businesses, Georgian PM Giorgi Gakharia said: “This is the help that will be directed to the maintenance of jobs, to the maintenance of companies, to the ongoing production of companies and to the maintenance of current businesses.”

The Central Bank has also been selling its US dollar reserves to prop up its currency. The lari has stabilised, although it is still at an all-time low.

Georgia’s economy ministry has said that the pandemic will knock the country’s GDP growth rate, but it has not said by how much.

ENDS

— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Central Asia Metals cancels dividend payout

APRIL 1 (The Bulletin) — Central Asia Metals, which produces copper in Kazakhstan, scrapped plans to pay a final dividend for 2019 and said it would reduce expenditure this year to try to save cash. The company, which is listed on the London Stock Exchange, said that a drop in commodity prices because of the spread of the coronavirus had forced it to change its plans.

ENDS

— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Uzbekistan asks Asian Development Bank for loan

APRIL 1 (The Bulletin) — Uzbekistan asked the Asian Development Bank (ADB) for a $1b loan to help its economy deal with the shock of a protracted lockdown to defeat the coronavirus. The government had earlier said that it wants to set up a $1.1b fund to help business deal with the impact of the coronavirus. Pres. Shavkat Mirziyoyev has also said that he will cut taxes for businesses and the rates that people pay for electricity, water and gas. Alisher Usmanov, an ethnic Uzbek Russia-based billionaire, gave $20m to a charity building a new hospital to treat patients infected with COVID-19.

ENDS

— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

IMF agrees to give Kyrgyzstan a loan of $120m to deal with the coronavirus

MARCH 27 (The Bulletin) — The IMF responded to Kyrgyzstan’s pleas for aid by agreeing a loan of $120m to help its economy survive the impact of the coronavirus pandemic. Kyrgyz Pres. Sooronbai Jeenbekov said in an open letter to the IMF that without a loan, the country would struggle to recover from the economic hit. 

The Kyrgyz som lost 16% of its value against the US dollar highlighting the economic impact that the country was already taking.

The Central Bank had been expected to increase its key interest rate to try to dampen anticipated rising inflation but instead it decided to keep rates at 5% (March 31).

ENDS

— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Kazakhstan raises interest rates to protect currency against the coronavirus

MARCH 26 (The Bulletin) — Faced with a collapse in the value of its tenge currency, the Kazakh Central Bank raised interest rates by 2.75 percentage points to 12% on March 9. It confirmed on March 16 that it was going to maintain this rate. 

On March 24, Kazakhstan also banned the export of all foodstuffs. Officials said that food was needed in Kazakhstan for now and that it could not afford to be exported. The government has also cut its economic outlook for 2020 partly, it needs to be stressed, because of the collapse of oil prices.

On March 17, the government also announced a series of tax cuts and cheap credit initiatives which it said would help business recover from the shock of the coronavirus. Retailers, restaurants, cinemas and other business forced to close because of lockdowns linked to curtailing the spread of the coronavirus will be exempt from property tax for a year. Banks have been told to defer loan repayments and the government will spend $750 million on infrastructure projects which will create 120,000 jobs.

ENDS

— This story was first published in issue 440 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Armenia imposes coronavirus lockdown

MARCH 26 (The Bulletin) — Armenia, the hardest hit country in the region by the coronavirus, has approved a series of stringent measures designed to slow the spread of the virus. All businesses, other than pharmacies and food shops, and outdoor activities have been banned unless necessary.

To support business, the government has said that it will provide grants of 150b dram ($306m).

ENDS

— This story was first published in issue 440 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Kyrgyzstan reports 44 cases of the coronavirus, mainly in the south

MARCH 26 (The Bulletin) — Kyrgyz health officials had reported 44 cases of the coronavirus by March 26. Most of these are located in Osh and Jala-Abad, in the south of the country. Officials said that the infection was brought in by people returning from being on a Hajj. The south of Kyrgyzstan is generally considered more pious than the north as it has a greater proportion of ethnic Uzbeks living there.

Kyrgyzstan has placed its main cities, Bishkek and Osh under a lockdown. 

Osh city hall has offered counselling in three languages — Kyrgyz, Russian and Uzbek — by phone for people affected by the coronavirus.

ENDS

— This story was first published in issue 440 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

COMMENT: Governments will be judged on how they deal with the coronavirus

MARCH 26 (The Bulletin) — With the global impact and disruption of Covid-19 becoming apparent, it is time to see what the governments of Central Asia and the South Caucasus are made of. Their responses now will forge their reputations. They will be judged.

And, so far, reactions have been wildly different.

Turkmenistan and Tajikistan appear to be pretending that the Covid-19 pandemic is not happening. Neither country has reported cases and in Tajikistan people are being encouraged to continue with their lives as normal. Last weekend thousands of people gathered to celebrate the Persian New Year and President Emomali Rakhmon has barely broken with his official engagements. In Ashgabat, President Kurbanguly Berdymukhamedov has talked up herbal remedies to the pandemic.

Berdymukhamedov and Rakhmon may be the Central Asian versions of Nero. While Rome burnt for a week in 64AD, Emperor Nero fiddled, or at least that is the popular perception.

Elsewhere the reaction of governments to the Covid-19 pandemic has been more mainstream.  Kazakhstan, Uzbekistan, Georgia and Armenia have all ordered lockdowns over their main cities and announced economic packages that will support business. Kyrgyzstan has applied to the IMF to help dampen its own Covid-19 epidemic which appears linked to people in the more religious and conservative south of the country returning home from the Hajj in Saudi Arabia.

In Azerbaijan, the approach has veered away from the orthodoxy, as it often does. Instead of offering the government grants and loans favoured by other countries to keep business running and to buy extra supplies and resources for its health service, Azerbaijani President Ilham Aliyev set up a special fund that would accept donations from companies, government agencies and the wealthy.

Never one to miss an opportunity to self-promote, top billing on the website currently goes to Aliyev and his wife, Mehriban, who is also the vice-president, for donating their salaries for 2020 to the fund. The website doesn’t say how large these donations were.

Covid-19 will shrink growth rates and possibly even economies across the region. The people of Central Asia and the South Caucasus are used to big, interventionist and, some would say, authoritarian government. Now these leaders have the opportunity to show their people that this power can be used to good effect in a national emergency.

ENDS

— This story was first published in issue 440 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Georgia says that it has 77 cases of the coronavirus

MARCH 26 (The Bulletin) — Georgian health officials said on Thursday that 77 people had been confirmed as Covid-19 positive. It has declared a state-of-emergency, placed movement restrictions in Tbilisi and other towns and ordered schools to close.

The Georgian Orthodox Church has been criticised for encouraging people to come to mass despite worries that it will spread the disease. It also sent priests out onto the street to bless cities.

ENDS

— This story was first published in issue 440 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Food prices rise in Turkmenistan because of coronavirus fears

MARCH 26 (The Bulletin) — Turkmenistan has also not reported any cases of the coronavirus but Radio Free Europe/Radio Liberty has reported that much like in Tajikistan, food prices have risen sharply. With regards, the economy, Pres. Kurbanguly Berdymukhamedov may be more concerned about the fall in the price of oil than about the coronavirus.

ENDS

— This story was first published in issue 440 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020