Kyrgyz Republic: Staff Report for the 2006 Article IV Consultation, Third Review Under the Poverty Reduction and Growth Facility, and Request for Waiver of Structural Performance Criterion
Author: International Monetary Fund
Publication Date:
29 Mar 2007
eISBN:
9781451821529
Language:
English
Keywords:
ISCR; CR; Kyrgyz authorities; government; Kyrgyzstan; government authorization; private sector; broad money; government finance; debt service; Kyrgyz investment; Balance of payments statistics; Loans; Foreign direct investment; Central Asia
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The Kyrgyz authorities have maintained macroeconomic discipline in recent years, despite a challenging political environment. This 2006 Article IV Consultation highlights that the economic activity is rebounding in 2006, with year-over-year real GDP growth of 3.2 percent through September, after a slight contraction in 2005. Inflation is projected to rise slightly to just below 6 percent during 2006. Remonetization has gathered pace in recent years, but the financial system remains relatively shallow by international standards. Comprehensive financial reforms are under way and are slated to gain momentum under the IMF-supported program.

Abstract

The Kyrgyz authorities have maintained macroeconomic discipline in recent years, despite a challenging political environment. This 2006 Article IV Consultation highlights that the economic activity is rebounding in 2006, with year-over-year real GDP growth of 3.2 percent through September, after a slight contraction in 2005. Inflation is projected to rise slightly to just below 6 percent during 2006. Remonetization has gathered pace in recent years, but the financial system remains relatively shallow by international standards. Comprehensive financial reforms are under way and are slated to gain momentum under the IMF-supported program.

Annex I. Kyrgyz Republic—Fund Relations

(As of September 30, 2006)

I. Membership Status: Joined: 05/08/1992; Article VIII

II. General Resources Account:

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III. SDR Department:

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IV. Outstanding Purchases and Loans:

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V. Latest Financial Arrangements:

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VI. Projected Payments to Fund

(SDR million; based on existing use of resources and present holding of SDRs)

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VII. Status of HIPC and MDRI Assistance: The Board considered the preliminary HIPC document on October 13, 2006. The decision point paper is expected to be presented for Board’s consideration in early 2007.

IX. Safeguards Assessments

Under the Fund’s safeguards assessment policy, the National Bank of the Kyrgyz Republic (NBKR) is subject to an assessment with respect to the PRGF arrangement, which was approved on March 15, 2005. An updated safeguards assessment of the NBKR was completed on October 14, 2005. The assessment found that the NBKR’s safeguards framework has been strengthened since the previous assessment completed in 2002. However, a number of areas were identified where further steps would solidify the progress achieved, which include improving oversight of the audit processes and the internal control systems by establishing an audit committee, strengthening the legal framework for NBKR’s autonomy, and enhancing the NBKR’s internal audit function.

X. Exchange Rate Arrangements

The currency of the Kyrgyz Republic has been the som (100 tyiyn =1 som) since May 15, 1993. The Kyrgyz Republic’s exchange regime is classified as a managed float with no preannounced path for the exchange rate. The NBKR publishes daily the exchange rate of the som in terms of the U.S. dollar, which is determined in the interbank foreign exchange market. The Kyrgyz Republic maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions, except for exchange restrictions maintained for security reasons relating to the restriction of financial transactions and the freeze of accounts of certain individuals or organizations associated with terrorism pursuant to (i) relevant UN Security Council resolutions and (ii) the list of current terrorist organizations designated by the U.S. Secretary of State. The authorities are in the process of notifying these measures to the Fund pursuant to Executive Board decision No. 144-(52/51).

XI. Article IV Consultations

The Kyrgyz Republic is on the 24-month consultation cycle. The last Article IV consultation discussions were held in August–October 2004 and were completed by the Executive Board on November 19, 2004. At the same time, the Executive Board considered the staff’s Ex Post Assessment of Longer-Term Program Engagement.

XII. FSAP Participation and ROSC Assessment

FSAP missions were held in May and September 2002, and the discussions were concluded during the 2002 Article IV consultation. A ROSC Fiscal Transparency mission was held in March 2001 and the ROSC Fiscal Transparency Module was published on March 13, 2002. A ROSC Data mission was held in November 2002 and the ROSC Data Module was published on November 10, 2003.

XIII. Resident Representative

The seventh resident representative of the Fund in the Kyrgyz Republic, Mr. McHugh, took up his post in Bishkek in late September 2006.

Annex II. Kyrgyz Republic—Relations with the World Bank Group

(As of August 31, 2006)

1. The last CAS covering FY03–06 has been completed in July 1st of this year and at present World Bank Country team jointly with four development partners (ADB, DFID, SWISS, and UN Agencies) is developing a Joint Country Support Strategy (JCSS) which will cover the period FY 07–10. JCSS will be based on the government’s Country Development Strategy (equivalent of PRSP–) which sought to capitalize on major reforms to date while maintaining a reform and growth course that will reduce poverty and enhance prospects for debt sustainability.

2. International Development Association (IDA). Since the Kyrgyz Republic joined the World Bank in September 1992, it has received commitments of $776 million for 38 IDA-funded projects, out of which $587 million have already been disbursed. Out of 19 operations totaling $480 million completed so far, seven structural adjustment credits provided quick disbursing support for the government’s economic reform programs in privatization, enterprise restructuring, agricultural policy, financial sector, public sector resource management, pension reform and energy reform. Twelve investment operations supported reform and rehabilitation of the telecommunications sector, social safety nets, health, rural finance, private enterprises and livestock development.

3. The active Bank portfolio in the Kyrgyz Republic comprises 19 operations with total commitments of $254 million, of which $107 million (58 percent) remains to be disbursed. Two projects: Village Investment Project and Reducing Technical Barriers for Entrepreneurship and Trade have been approved by Board and became effective in FY07. In addition to the country portfolio, the Kyrgyz Republic also benefits from the regional HIV/AIDS project.

4. Until the new JCSS is approved, the World Bank Group’s operational objective for the next six months is to continue supporting the ongoing government’s efforts to improve energy sector performance, the business environment, the banking sector, governance, public expenditure management, intergovernmental finance, the pension system, social protection, health, water and sanitation, and agriculture, and to enhance the portfolio performance. It will continue assisting the government with economic sector work and capacity building.

5. International Finance Corporation (IFC). The IFC strategy in Kyrgyz Republic focuses on institution and capacity building through investment and technical assistance to promote private sector development, especially small and medium-size enterprises (SMEs), and support the transformation into a market-based economy. IFC’s portfolio in Kyrgyzstan stood at $15 million with 77% in financial markets, 9% in general manufacturing and 14% in agribusiness. The amount of total investments made to Kyrgyz economy since 1996 reached $56.19 million.

Building upon IFC’s initial investment in the financial sector, the Demir Kyrgyz International Bank, IFC has played an instrumental role in establishing the largest bank in the country, the Kyrgyz Investment and Credit Bank, with a $1.4 million equity investment. IFC developed a strategic partnership with FINCA by investing a $1.0 million in a fund to support micro enterprises. This investment was accompanied by technical assistance to FINCA to facilitate its transformation and to the government to develop the appropriate regulatory framework. The largest investment in the existing portfolio is the Kumtor gold mine, with additional investments in a packaging plant Altyn-Ajydar. In 2002, under the Small Enterprise Fund (SEF) procedure, IFC disbursed a direct investment into a pasta plant (Akun) in the amount of $1.4 million. The IFC Board also approved in May 2002 a micro and small enterprise facility for Central Asia, with IFC investment of $45 million. In the same year, the Central Asia Small Enterprise Fund (CASEF) was set up in collaboration with other lenders. The fund will provide equity, quasi-equity, and debt financing, as well as technical and managerial assistance to growth-oriented SMEs. To date IFC has provided credit lines to local banks as AKB Kyrgyzstan, Ineximbank and Kazcommertsbank for the total amount of $5 million. With financial support from the Swiss Government, IFC draws upon the resources of the Private Enterprise Partnership to advise on improving the business environment, provide training and support services for SMEs, continue past efforts to develop leasing activities, and support agribusiness for local and export markets. In January 2006 IFC signed an agreement to provide $2.2 million financing package to Micro Credit Agency Bai-Tushum, one of Kyrgyzstan’s leading micro lending institution.

IFC has completed about 14 technical assistance projects with funding for the total amount of $2.2 million in the areas of: (a) institutional and capacity building in the financial sectors including leasing, microfinance; (b) creating favorable business environment for SMEs; (c) improvement of investment climate; and (d) developing capacity building for tourism. In 2005 IFC launched two technical assistance projects to improve legal, regulatory and tax framework for housing finance and leasing. It is also planed to start a regional technical assistance project to improve corporate governance in enterprises of Central Asia.

6. Multilateral Investment Guarantee Agency (MIGA). MIGA has supported private sector development in the Kyrgyz Republic by extending guarantees to foreign direct investments in four projects in the manufacturing, services, and mining sectors. Three are currently outstanding—two related to airport services at Manas airport and a now defunct airline. There is an on-going legal dispute between the investors and the Government involving these two contracts. At the request of both parties MIGA has offered to mediate. One related to the Kumtor gold mine. The total amount of foreign direct investment facilitated by MIGA guarantees is over $360 million. MIGA has also provided capacity building in foreign investment techniques to the State Committee on Foreign Investments and Economic Development, under an initiative supported by the Swiss Government. MIGA plans to continue to assist the development of the Kyrgyz Republic through its guarantee program and capacity building. Data on the Kyrgyz Republic are also featured in MIGA’s Privatization Link service, which connects potential investors to information on companies slated for divestiture via the Internet.

7. World Bank contacts:

Roland Clarke (rclarke@worldbank.org), Sr. Country Economist Phone (202) 458-8156

Dinara Djoldosheva (ddjoldosheva@worldbank.org), Sr. Country Officer Phone (996312) 610650

Annex III. Kyrgyz Republic—Relations with the Asian Development Bank (ADB)

(As of August 31, 2006)

1. The Kyrgyz Republic became a member of the ADB in 1994 and began receiving assistance in the same year. The country has received 25 loans and 1 grant for a total amount of $604 million (as of August 31, 2006). Seven out of the 25 loans are program loans totaling $199.5 million provided to support policy reforms to facilitate the transition to a market economy. The remaining 18 are project loans and one project grant totaling $404.5 million provided to support various investment activities. At present, ten loans with approved loan amount of $200.8 million are ongoing. These loans have an undisbursed balance of $118.0 million as of August 31, 2006. All these loans were provided on concessional terms from the Bank’s special fund resources—Asian Development Fund (ADF).

2. ADB’s average annual lending level during 2002 and 2003 was $15.25 million. This was much lower than the lending levels in the past, largely due to the government’s policy of restrained borrowings as part of its debt strategy. This strategy envisages a reduction in the size of the largely externally funded PIP from about 6 percent of GDP in 2001 to about 3 percent of GDP by 2005. ADB’s annual lending began with $40 million in 1994 and reached the peak level of $89.2 million by 1997. Thereafter, lending levels fell slightly and hovered between $65 million and $75 million through 2001. The level of assistance for the block of two year 2005–06 was $60.8 million. The allocation for the block of two years 2007–08 is determined at $46 million. This program will be reviewed, based on the availability of ADF funds and the rules governing grants, to make it consistent with the Government’s debt reduction strategy and the limits on the PIP. In addition, ADB had provided 64 technical assistance (TA) projects amounting to $37.5million as of today. Of these, 17 are project preparatory TAs amounting to $11.3 million and the remaining 47 TAs for $26.2 million are advisory TAs for capacity building, policy advice, institutional strengthening and training. The Kyrgyz Republic has also received five JFPR Grants amounting to $4 million.

3. The performance of ADB’s portfolio is generally satisfactory, although one loan was rated at risk. The scarcity of budgetary resources, and ceilings on the externally funded PIP constituted the biggest risks to the country portfolio. ADB and the World Bank have thus sought the removal of quarterly disbursement ceilings, which delay project implementation. In August 2005, IMF agreed to be more flexible in determining annual targets for the PIP, which is expected to improve portfolio performance.

4. ADB’s assistance to the country has sought to support the development objectives of the government’s National Poverty Reduction Strategy by fostering growth and providing selective support for the social sectors. ADB’s strategy for 2006–08 supports government approach to poverty reduction and accomplishment of Millennium Development Goals. In particular, ADB’s social sector projects aim to improve access to pre-school and basic education, primary vocational education, and maternity and child health services for the poor.

5. The allocation of ADF resources to the country is based on the government’s attainment of performance targets (triggers) in five areas: (a) making steady progress in macroeconomic management and structural reforms in the financial sector, and customs administration; (b) making progress in prioritizing on-going PIP projects; (c) adhering to the national debt reduction strategy; (d) finalizing the NPRS; and (e) implementing a package of legal and judicial reforms for improving the investment climate for the private sector. Accordingly, based on performance, allocation for the Kyrgyz Republic for 2005 and beyond would range between $14.4 million and $32 million based on the availability of ADF resources. ADB’s annual investment levels averaged $57.3 million during 1994–2004 and fell down to $30.4 per year on average in 2005–06. From 2005 onward, up to 50 percent of ADF assistance to the country will be in the form of grants.

6. ADB coordinates its activities closely with the EBRD, IMF, IsDB, World Bank, the UN System, and bilateral donors at all levels of development cooperation. There have been significant strides forward in aid coordination since the last CG meeting held in Bishkek in November 2002, when both the Government and the donors agreed to focus on improving significantly coordination efforts. Since then efforts are being made to share sectoral and operational information and better coordinate lending and technical assistance activities. Since 2003, ADB and World Bank, which together account for over 75 percent of the PIP, conducts a joint portfolio review. The Kyrgyz Republic is one of the partnership countries selected for harmonization of donor procedures at the Rome conference on harmonization held in February 2002.

7. The Kyrgyz Resident Mission, which plays a pivotal role in aid coordination, is participating in the working group set up by the Government to identify areas for harmonization of donor procedures. The areas identified for harmonization in the immediate future are: (a) procedures for procurement of goods and services; (b) financial management and monitoring of projects; and (c) project implementation units. World Bank and ADB procurement documentation has been harmonized in these areas.

8. Starting from September 2005, ADB together with other major bilateral and multilateral agencies (DFID, SDC/seco, UN, and WB) providing assistance to the Kyrgyz Republic is developing a joint Country Support Strategy for the period 2007–10 to improve donor harmonization and alignment, and ensure more consolidated donor assistance to the country.

Annex IV. Kyrgyz Republic—Relations with the European Bank for Reconstruction and Development (EBRD)

(As of August 31, 2006)

1. The EBRD facilitates the transition to a market-based economy through its direct support for private sector investment and key infrastructure, and targeted technical assistance. Under its recently introduced Early Transition Countries’ Initiative (ETCI), which is of particular relevance to the Kyrgyz Republic, the Bank is introducing innovative instruments, and will consider smaller, more difficult projects. The ETCI also foresees technical cooperation (TC) to support investment development.

2. According to the Strategy for the Kyrgyz Republic approved in November 2004, the Bank’s priorities for the period of 2004–06 are to: (a) foster the private sector; (b) strengthen the financial sector; (c) provide support for essential infrastructure; and (d) strengthen the policy dialogue to improve the investment climate and support reform efforts.

3. As of 30 June 2006, the Bank had approved 39 projects (including restructurings) including EUR 766.7 million of investment out of which the Bank had financed 23 percent for a gross commitment of EUR 174.1 million. During the past three years, the Bank expanded its activities in the financial sector to include:

  • The Kyrgyz Micro and Small Enterprises Financing Facility (MSEFF). As of 30 June 2006, more than $108 million (cumulative) had been disbursed to 52,833 small and medium-size enterprises via six participating local commercial banks. The bank has now signed credits with non banking institutions—Bai-Tushum, KAFC and FINCA. Equity investments in Ineximbank, Demir Bank, and KICB. Expansion of Trade Facilitation Program (TFP). Four banks are participants in the TFP.

  • In 2004, the Bank signed a cofinancing facility of $4 million to KICB. This new ETC product is provided to meet financing needs of emerging medium-sized private companies. The first sub loan agreement has been signed on December 26, 2005 for EUR 450,000.

  • Other activities of the Bank include:

  • Five investments (equivalent to $3.1 million) via the Direct Investment Facility.

  • $20 million loan and $10 million sub debt, since converted into $17 m equity participation in Centerra Gold (the Bank’s senior loan have been fully repaid).

  • Loan to Hyatt-Regency Hotel, $6.3 million in 1997.

  • Loan to Interglass plant, $6 million in 2004.

  • Loan to Limatex (cotton-processing plant in Djalal-Abad), $1 million in 2005.

  • Loan to Raduga Invest (resort on Issyk-Kul lake), $6 million in 2005.

  • Although the Bank is currently unable to provide loans with sovereign guarantee the Bank continues to monitor public sector projects:

  • Modernization of the telecommunications network ($7.9 million).

  • Two projects to upgrade electricity transmission networks in Issyk-Kul and Talas regions ($63 million combined).

4. The Bank also implements grant-funded TC to support its investment portfolio, including the financial sector (including MSFF consultants among others), natural resources/environment, agribusiness and infrastructure. Recent TCs include:

  • In telecoms, to advise on key reforms, including inter-capacity access arrangements;

  • Training for judges in commercial law;

  • Investor protection reform initiative;

  • Roll out of the Business Advisory Service and Turn Around Management programs, providing consulting services to viable businesses.

5. Finally, the Bank maintains an active dialogue with the government. For example, the Bank was instrumental in founding the International Business Council, which is devoted to working with the government on improving the investment climate. The Bank also has provided guidance on legal reforms, such as the newly revised Law on Pledge.

Annex V. Kyrgyz Republic—Technical Assistance Provided by the Fund, February 2003–August 2006

Annex V. Kyrgyz Republic—Technical Assistance Provided by the Fund, February 2003–August 2006

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Annex VI. Kyrgyz Republic—Statistical Issues

General framework

1. Data provision is adequate for surveillance. The three institutions responsible for collecting, compiling and disseminating macroeconomic statistics—the National Statistics Committee (NSC), the ministry of economy and finance (MOF), and the National Bank of Kyrgyz Republic (NBKR)—have legal and institutional environments that support statistical quality, and their respective staff are well versed in current methodologies. Unlike staff resources, however, computer and financial resources are generally not commensurate with current needs and therefore constrain statistical development, especially for the NSC.

2. The NSC maintains a comprehensive and regularly updated web site with data that largely incorporate international methodological recommendations and adequate coverage and timeliness (http://www.stat.kg). In February 2004, following improvements in compilation and dissemination of the reserves template and external debt data, the Kyrgyz Republic subscribed to the SDDS.

3. A data ROSC mission in November 2002 assessed the data dissemination practices against the GDDS and undertook an in-depth assessment of the quality of national accounts, prices, government finance, monetary, and balance of payments statistics. The mission concluded that the quality of the Kyrgyz Republic’s macroeconomic statistics had improved significantly in the last few years. The authorities had established a good track record of implementing recommendations of past technical assistance missions in statistics and had demonstrated commitment to pursue plans and programs to further improve their statistics. The mission recommended that a program of regular intersectoral consistency checks be introduced to reduce the sometimes significant, unexplained discrepancies between the government finance, monetary, and balance of payments datasets. The authorities’ response to the data module ROSC (posted on the IMF website (www.imf.org/external/np/rosc) includes an update on the status of implementation of the ROSC mission’s recommendations.

National accounts

4. In general, dissemination of national accounts statistics is timely. Technical assistance has been received from the IMF, EUROSTAT, OECD, the World Bank, and bilateral donors. While significant progress has been made in improving the national accounts estimation process, problems persist regarding the quality of the source data, due mainly to excessively tight collection deadlines associated with the national accounts release schedule. Efforts are needed to improve the quality of the source data for quarterly GDP estimates. Moreover, subannual national accounts statistics are still prepared on a cumulative basis rather than by discrete time periods. Difficulties also remain in properly estimating the degree of underreporting, especially in the private sector. To improve the coverage and reliability of primary data, work has been undertaken to introduce sampling procedures. Improved sampling procedures have been adopted for household surveys and new report forms are being introduced for the enterprise survey. The NSC has established a division of sample surveys, which would assist in improving the sampling techniques.

Prices, wages, and employment

5. The concepts and definitions used in the consumer price index (CPI), which has been published since January 1995, are broadly consistent with international standards. The price index covers all urban resident households of all sizes and income levels, but excludes rural households, which comprise the majority of the population. The ROSC mission recommended that the authorities expand the coverage of the CPI to include rural households.

6. The producer price index (PPI), which has been published since October 1996, is compiled broadly in accordance with international standards, although its coverage needs to be improved. The coverage of the PPI was broadened in May 1997 and is expected to be further expanded in the coming years.

7. Progress has been made in computing unit value indices for imports and exports. Work continues with regard to computation of these indices using a standard index presentation and the development of an export price index. However, problems in customs administration have led to incomplete coverage of trade and the lack of an appropriate valuation system. Moreover, the data processed by customs have suffered due to the use of an outdated computer software system.

8. Problems exist in the compilation of the average wage, especially with respect to the valuation of payments in kind and the coverage of the private sector. Monthly and annual data are not comparable because of different coverage and classifications. These problems extend to employment data as well. The coverage of unemployment includes an estimate of unregistered unemployed.

Fiscal accounts

9. The scope of central government statistics falls short of international standards because it excludes data for the Social Fund and the externally financed Public Investment Program (these data are published separately). Other limitations involve the exclusion of financial transactions with domestic banks and the discrepancies between the deficit and financing data. While revenue and expenditure data generally accord with the GFSM 1986, there are misclassifications in both categories (for example, some nontax revenues are classified as taxes, and certain expenditure items are misclassified in the budget and treasury accounts). Monthly GFS data for IFS publication have been reported up to June 2006. Annual GFS data however, are reported for the GFS Yearbook, with the latest data being for 2005, covering budgetary central government and local government operations.

10. The provision of data on public external debt service has improved. Data on actual debt service, guaranteed debt service, outstanding debt and revised debt projections, are provided on a monthly basis. The quality (including timeliness) of external debt data isadequate. The External Debt Division of the MOF is now solely responsible for monitoring external debt, and this division has benefited from on-site training provided by a Swiss-financed long-term consultant and the computerization of its database.

Monetary sector

11. The 2002 data ROSC mission found that: (a) the residency criterion was not uniformly applied, as the currency denomination was used to classify some transactions with foreign and domestic units; (b) deposits with banks in liquidation were included in broad money; and (c) source data did not provide sufficient information for a more detailed sectoral breakdown (e.g., subsectorization of nonbank institutions as recommended in the Monetary and Financial Statistics Manual (MFSM)).

12. An STA mission on monetary and financial statistics visited Bishkek during April 27–May 11, 2004 to (a) follow up on the implementation of the ROSC mission’s recommendations; (b) expand the institutional coverage of the broad money survey; and (c) assist the NBKR in implementing the methodology in the MFSM. This mission found that the NBKR had made substantial progress in implementing the ROSC mission’s recommendations pertaining to monetary statistics. To address the outstanding issues, the mission further recommended that the NBKR (a) improve the basic source data to allow for proper classification of the transactions with foreign and domestic units; (b) fully implement the MFSM’s methodology concerning accrual accounting; (c) exclude deposits with banks in liquidation from monetary aggregates and classify them as restricted deposits; and (d) set up a working group to follow up on consistency between monetary and balance of payments statistics. The mission also recommended expanding the current broad money survey to include the accounts of credit unions and microfinance companies.

13. Monthly monetary data for IFS publication are reported on a regular and timely basis. Since December 2002, monetary data have been reported electronically to STA. In 2005, the NBKR began reporting its monetary data to STA using Standardized Report Forms, which are designed in accordance with the MFSM’s methodology.

External sector

14. Data on the balance of payments and international investment position are compiled and disseminated on a quarterly basis. The 2002 data ROSC mission noted that the compilation of balance of payments statistics broadly follows the Balance of Payments Manual, Fifth Edition (BPM5). The NBKR has good arrangements with other agencies to ensure timely data flow. However, because of legal issues related to secrecy provisions, high value transactions cannot be verified with respondents, limiting the ability to cross-check the accuracy of data. Although the data collection program has been expanded in the recent past, coverage deficiencies remain with respect to trade, services, and foreign direct investment. The NBKR enterprise surveys lack an up-to-date register and have inadequate coverage of enterprises, particularly those in free economic zones. There is also a need to improve compilation procedures for achieving temporal consistency of data, and investigating and reconciling discrepancies.

15. The NSC conducts a quarterly sample survey for the estimation of shuttle trade, and uses customs records on the number of people crossing the border with CIS countries to derive the sample. However, the high value limits applied for free import of goods by individuals have fostered a large shuttle trade, which has complicated estimation of this activity.

16. An STA mission on balance of payments statistics was in Bishkek during March 15–29, 2004 in response to the authorities’ request for technical assistance to address compilation issues, and to assess training needs. The mission noted that while improvements have been made in several areas, further improvements were needed in the international transactions reporting system; data sampling methods; and data validation and coverage, particularly on trade, services, private sector external debt and foreign direct investment. The mission developed a questionnaire for collecting data on foreign direct investments and provided guidelines on the collection of data on external debt.

Appendix VI. Kyrgyz Republic: Table of Common Indicators Required for Surveillance

(as of September 29, 2006)

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Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign and domestic financing only.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).

Reflects the assessment provided in the data ROSC (published on November 2003, and based on the findings of the mission that took place during November 2002) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning (LO), largely not observed (LNO), or not observed (NO).

Same as footnote 7, except referring to international standards concerning source data, statistical techniques, assessment and validation of source data, assessment and validation of intermediate data and statistical outputs, and revision studies.

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Cover IMF Staff Country Reports
Kyrgyz Republic: Staff Report for the 2006 Article IV Consultation, Third Review Under the Poverty Reduction and Growth Facility, and Request for Waiver of Structural Performance Criterion
Author: International Monetary Fund
Volume/Issue:
Volume 2007: Issue 135
Publisher:
International Monetary Fund
ISBN:
9781451821529
ISSN:
1934-7685
Pages:
127
DOI:
https://doi.org/10.5089/9781451821529.002