Tag Archives: Kyrgyzstan

Comment: Regional economies begin to steady, writes Sorbello

OCT. 7 2016 (The Conway Bulletin) — Central Banks across Central Asia and the South Caucasus seem to have switched off their crisis mode, as inflation slows, oil prices pick up and remittances begin to regenerate.

Excited about the imminent re-start of the Kashagan offshore oil project, Kazakhstan is looking stronger, after months of uncertainty regarding its currency and its budget stability.

An important sign of the country’s recovering health was the rate cut by Kazakhstan’s Central Bank this week, which said that with inflation back into the 6 – 8% band that it was targeting and that monetary policy could be eased.

This decision has been in the Central Banker’s thinking over the past few weeks. That much is clear. Daniyar Akishev has been showing, for the first time, a more confident and determined tone.

And countries less impacted by oil prices, from Armenia to Kyrgyzstan, have also tried to boost their rather slow economic activity by lowering or keeping low interest rates in the past weeks.

All currencies from the region have been hit by a stronger US dollar over the past two years, and their depreciation led inevitably to a sharp increase in consumer prices.

Some — such as Azerbaijan, Kazakhstan, Kyrgyzstan and Georgia — needed strong monetary interventions. Others, such as Tajikistan, Armenia and Uzbekistan stabilised at a comparatively faster pace.

Last month, Russia’s Central Bank said migrant worker remittances to Kyrgyzstan had increased by 21%, reflecting a higher migration rate. On the other hand remittances to Tajikistan and Uzbekistan fell because of a drop in the number of migrants. Perhaps this is the Eurasian Economic Union effect?

Kyrgyzstan and Tajikistan are among the top remittance-dependent countries in the world.

As the ship seems steadier, however, countries across the region will have to cope with more domestic problems, chiefly in the banking sector and other private sectors hit hard by the economic downturn.

As shown this week with the bankruptcy of Bank Standard, Azerbaijan’s financial sector doesn’t seem to have fully recovered from the crisis. And in western Kazakhstan, where oil is the job creator, a month-long strike just ended with the workers obtaining higher salaries and the company winning state tenders. There is still work to do.

By Paolo Sorbello, Deputy editor, The Conway Bulletin

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(News report from Issue No. 299, published on Oct. 7 2016)

Gazprom to apply discount to Kyrgyzstan

OCT. 1 2016 (The Conway Bulletin) – Gazprom Kyrgyzstan representatives said they would apply a 1% discount on gas supplies to households and industries to reflect the strengthening of the som currency. Gazprom Kyrgyzstan, a subsidiary of Russia’s gas giant Gazprom which owns Kyrgyzstan’s gas distribution network, can revise gas tariffs on a monthly basis. Gas prices have become a political issue in the region, often sparking protests against proposed price rises.

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(News report from Issue No. 299, published on Oct. 7 2016)

Kyrgyz President says he had heart attack

OCT. 3 2016 (The Conway Bulletin) – Kyrgyz President Almazbek Atambayev said that he had had a heart attack while en route to New York for a UN meeting and that he was back at work after undergoing medical care. On Sept. 19, Mr Atambayev cancelled the trip to the UN Annual Assembly after suffering chest pains during a layover in Turkey. He later flew to Russia for medical care before returning to Bishkek at the weekend.

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(News report from Issue No. 299, published on Oct. 7 2016)

Kyrgyz court starts re-trial for Askarov

OCT. 4 2016 (The Conway Bulletin) – A Kyrgyz court started a re-trial of Azimzhan Askarov, a human rights activist jailed for life after being accused of stirring ethnic hatred during the 2010 revolution that toppled former President Kurmanbek Bakiyev. Under pressure from international human rights lobby groups, Kyrgyzstan’s Supreme Court ordered a re-trial in July. At the first hearing, Askarov pleaded not guilty.

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(News report from Issue No. 299, published on Oct. 7 2016)

Kyrgyz econ minister slams Eurasian Economic Union

BISHKEK, OCT. 4 2016 (The Conway Bulletin) — Joining the Eurasian Economic Union (EEU) has made conditions worse for Kyrgyz businesses, economy minister Arzybek Kozhoshev said in some of the harshest criticism so far levelled at the Kremlin-focused project.

Kyrgyzstan joined the EEU last August but has always been a reluctant partner — the other partners are Russia, Kazakhstan, Armenia and Belarus — with businesses speaking out about the extra red tape and the risk of damaging important trade relations with China.

Now Mr Kozhoshev said that data showed extent of the damage.

“The first year in the EEU has not shown any positive results yet. Some economic indexes have worsened and export volumes have dropped,” Mr Kozhoshev said at a business forum.

“Textile exports dropped by 21.5% in the first half of the year compared to last year. Dairy products exports also fell by 24% in the same period. Our trade partners have created artificial barriers for our manufacturers.”

Kyrgyzstan’s economy has been under pressure, much like the rest of the region, but Mr Kozhoshev’s message was clear. Much of the problem, he said, was down to the EEU.

Coincidentally the two main architects of the EEU, Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev, were meeting in Astana for a Kazakhstan- Russia Business Forum. They had a very different take on the EEU.

During the session, Mr Nazarbayev lauded the EEU and encouraged all ministers to recount a positive story about the bloc.

“The Eurasian Economic Union is a key element in the revival of the Great Silk Road,” he was quoted by media as saying.

Some analysts in the West have said the driving force, and the Kremlin’s main aim, behind the EEU was political rather than economic.

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(News report from Issue No. 299, published on Oct. 7 2016)

Kyrgyzstan’s reservoir water level increases

SEPT. 26 2016 (The Conway Bulletin) – Water levels at Toktogul, a key reservoir in Kyrgyzstan, have increased to a four year-high, prompting the government to reassure people about winter electricity supplies. Tagzhana Aidaraliyeva, a spokesperson for the company managing Toktogul said water levels have reached 17.4b cubic metres in mid-September. In 2014, water levels had fallen to 11.9b cubic metres, forcing Kyrgyzstan to increase electricity imports and ration its distribution.

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(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyzstan approves constitutional referendum

BISHKEK, SEPT. 29 2016 (The Conway Bulletin) — Kyrgyzstan’s parliament approved President Almazbek Atambayev’s plans to hold a referendum at on Dec. 4 on altering the constitution to give the PM more power.

The planned constitutional reforms are controversial.

Kyrgyzstan’s current constitution was organised in 2010 after a revolution. To many, it feels that changing it now would be an insult to those people who died in that revolution.

Opposition groups also accuse Mr Atambayev of wanting to move into the PM’s position once he leaves the presidency next year and it has also triggered a fall out with his highly regarded predecessor, Roza Otunbayeva.

In Bishkek opinion was split.

“I think the changes are needed because everyone talks about them in the media,” said Elnur, a 32-year-old driver. Samat, 24, disagreed.

“We do not need changes,” he said. “The whole process reminds me of former presidents of Kyrgyzstan.”

Two former presidents were overthrown after trying to change the constitution.

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(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyzstan’s ex-PM to run?

SEPT. 23 2016 (The Conway Bulletin) – Temir Sariyev, Kyrgyzstan’s ex-PM, hinted at his possible participation in next year’s presidential election. Mr Sariyev, 53, who resigned in April to face corruption allegations, continues to be a powerful figure in Kyrgyzstan. In an interview with RFE/RL, Mr Sariyev said that he had major plans for the future.

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(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyz court sentences islamists

SEPT. 29 2016 (The Conway Bulletin) – Kyrgyzstan’s National Security Committee said a court in Osh jailed four alleged members of the extremist IS group. The two Kyrgyz and two Uzbek citizens, whose names were kept secret, received sentences of between 10 and 18 years in prison for planning terrorist attacks in the country. In August, a suicide bomber drove a car through the Chinese embassy gates in Bishkek injuring several people.

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(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyz Central Bank keeps rate unchanged

SEPT. 26 2016 (The Conway Bulletin) – Citing falling prices and signs that the economy is beginning to grow again, Kyrgyzstan’s Central Bank kept interest rates unchanged at 6%. The Central Bank said that only by keeping rates at 6% will it be able to let prices increase gently, within a 5-7% corridor. This year, the Central Bank has reduced interest rates twice from a level of 10% in January.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)