EFSD to provide $100 million to Kyrgyzstan to fight the pandemic’s consequences
BISHKEK (TCA) — The Council of the Eurasian Fund for Stabilization and Development (EFSD) has decided to provide US $100 million to Kyrgyzstan. The loan will be used to implement the Kyrgyz Government and National Bank’s program to counter the impacts of COVID-19 on the economy and the financial and social sectors.
The funds will be provided for twenty years, with an interest rate of 1% per annum and a grace period of ten years.
EFSD funds will help to implement measures aimed at ensuring fiscal and debt sustainability, conducting a balanced monetary policy, supporting the social sector, as well as restoring economic activity and supporting businesses in the Kyrgyz Republic during the pandemic.
The Eurasian Fund for Stabilization and Development (EFSD) amounting to US$8.513 billion was formed in 2009 by the governments of Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, the Russian Federation, and Tajikistan. The EFSD assists its member states in overcoming the consequences of the global financial crisis, ensuring their economic and financial stability, and fostering integration in the region. The EFSD member countries signed the Fund Management Agreement with the Eurasian Development Bank giving it the role of the EFSD Resources Manager.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB’s charter capital totals US $7 billion. The member states of the Bank are Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, the Russian Federation, and Tajikistan.