On amendments to the Resolution of the Government of the Kyrgyz Republic “On Civil Aircraft to be Included into the Register of Civil Aircraft of the Kyrgyz Republic”

According to the changes made, it is forbidden:

– to include aircraft older than 25 years from the date of issue in the State Register of Civil Aircraft of the Kyrgyz Republic, except for aircraft intended for commercial cargo transportation, which are not older than 50 years from the date of issue;

– to operate cargo aircraft older than 50 years from the date of issue;

– to arrange transportation of passengers on aircraft, older than 40 years from the date of issue, previously included in the State Register of Civil Aircraft of the Kyrgyz Republic.

Aircraft that have not operated within the last 2 years due to lack of airworthiness are excluded from the State Civil Aircraft Register of the Kyrgyz Republic.

The Resolution shall become effective upon seven days expiry from the date of official publication hereof.

On approval of the Regulation on the tender commission for public-private partnership projects

Regulation on Tender Commission for Public-Private Partnership Projects having been approved, defines the procedure of formation, activities and authorities of the Tender Commission for Public-Private Partnership Projects, as well as establishes qualification requirements for its members.

The Ministry of Economy of the Kyrgyz Republic has been instructed to create within one month an open database of implemented and potential public-private partnership projects and approve the rules of its maintenance, as well as approve the form of reporting on the progress of public-private partnership projects.

State partners, whose projects will be included in the database of ongoing and potential public-private partnership projects, have been instructed to submit quarterly reports on progress in implementing public-private partnership projects to the State Institution “Public-Private Partnership Center” under the Ministry of Economy of the Kyrgyz Republic according to the relevant reporting form.

The Resolution shall become effective upon expiry of the ten days period from the date of official publication.

On determining the procedure for withdrawal, recall, utilization and destruction of unsafe food products

The relevant Resolution of the Government of the Kyrgyz Republic approved the Regulation on Withdrawal and Recycling and the Regulation on the Procedure for Recycling and Destruction of Food Products that do not comply with the Set Requirements for their Quality and Safety, which determine the procedure for withdrawal and recall, the procedure for utilization and destruction of unsafe food products in order to protect human life and health, the environment, prevention of actions that mislead buyers (consumers).

The requirements of the Regulations shall apply to individuals and legal entities, irrespective of the type of property and legal form of organization, engaged in processing, production (manufacturing), storage, transportation, realization and delivery of the food products.

The Regulations shall not apply to food products produced by citizens at home, in personal subsidiary farms or by citizens engaged in horticulture, gardening, animal husbandry, and the processes of production (manufacturing), storage, transportation (transportation) and utilization of food products intended for personal consumption and not intended for release into circulation on the territory of the Kyrgyz Republic, cultivation of agricultural crops and productive animals in natural conditions.

The Resolution shall become effective upon fifteen days expiry from the date of its official publication. Published in the newspaper “Erkin Too” dated February 28, 2020 N 23.

On approval of a number of legal regulatory documents in the field of customs regulation

In order to implement the requirements of the Law of the Kyrgyz Republic “On Customs Regulation”, the resolution approved:

– Instructions on the application of individual customs procedures;

– Instruction on control over calculation and payment of customs duties, special, anti-dumping and countervailing duties;

– Regulation on temporary storage of goods under customs control;

– Regulation on customs escort;

– Regulation on Free Warehouse;

– Qualification requirements to the employees of customs representatives;

– Requirements to infrastructure, technical equipment and operation mode of temporary storage warehouses and customs warehouses;

– Procedure for creation and designation of customs control zones;

– The procedure for application of technical means of customs control;

– The Procedure for Appointing Customs Expertise, Sampling and Sampling during Customs Expertise;

– The Procedure of Customs Control of Goods with Application of the Double Corridor System;

– The procedure for conducting customs audits;

– The procedure for selling or destroying foreign goods confiscated or turned into ownership (income) of the Kyrgyz Republic or for which recovery is made, as well as goods detained by customs authorities;

– The procedure for consulting on customs affairs and other issues within the competence of the Customs authorities;

– Regulation on the procedure for making preliminary decisions on the classification of goods in accordance with the Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union (HS EAEC);

– Instruction on the organization and conduct of customs inspection and examination of goods and vehicles, as well as forms of customs documents.

The resolution shall enter into force upon expiration of fifteen days from the day of its official publication, except for certain provisions that enter into force upon expiration of two years from the day the resolution enters into force. It was published in the “Erkin Too” newspaper dated February 28, 2020 N 23.

On amendments to the Law “On Biosphere Territories in the Kyrgyz Republic”

President of the Kyrgyz Republic Sooronbai Jeenbekov signed Law on Amendments to the Law of the Kyrgyz Republic On Biosphere Territories in the Kyrgyz Republic.

The Law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on February 5, 2020.

The purpose of the Law is to eliminate a number of causes that have flaws and shortcomings in the socio-economic development of biosphere areas in Kyrgyzstan, to develop a single mechanism of norms, rules and restrictions on nature use and environmental protection, as well as to ensure active and sustainable development of the “Issyk-Kul” biosphere environment.

The Law shall become effective after ten days from the date of its official publication.

On Amendments to the Law “On Commodity Exchange and Exchange Trade in the Kyrgyz Republic”

President Sooronbai Jeenbekov signed the Law “On Amendments to the Law of the Kyrgyz Republic on Commodity Exchange and Exchange Trade in the Kyrgyz Republic.

The Law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on January 22, 2020.

The said Law introduced certain amendments and additions to the Law of the Kyrgyz Republic dated June 29, 1992 # 915-XII “On Commodity Exchange and Exchange Trade in the Kyrgyz Republic” in order to improve legal regulation of relations arising in the field of commodity exchange and exchange trade in the Kyrgyz Republic.

In particular, sale of services by formed lot and sale of investment projects (rights to invest in projects) have been added to the exchange trade transactions list.

The changes also affected the provisions on the establishment (creation) of a commodity exchange. The new version of the law establishes that the commodity exchange shall be established in the legal form of a joint stock company and registered in the prescribed manner. Conditions for the formation of the authorized fund of commodity exchanges have also been established.

The new wording of the law has eliminated the article defining the procedure of state control over the activity of commodity exchanges.

The Law shall come into force on the day of its official publication.

On ratification of the 2014 Protocol of the 1930 Convention on Forced Labour

The President of the Kyrgyz Republic Kyrgyzstan, Sooronbai Zheenbekov, signed the Law of the Kyrgyz Republic On Ratification of the 2014 Protocol to the 1930 Convention on Forced Labour.

The Law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on 16 January 2020.

As per the Law, the Ministry of Foreign Affairs of the Kyrgyz Republic must deposit the instrument of ratification of the 2014 Protocol to the 1930 Convention on Forced Labour with the depositary, who is the Director-General of the International Labour Organization.

The Law shall become effective upon 10 days expiry after its official publication.

 

For reference:

The Protocol to the 1930 Convention on Forced Labour was adopted at the 103rd session of the General Conference of the International Labour Organization on 11 June 2014 in Geneva, Switzerland (the 2014 Protocol).

1930 Convention on Forced Labour No. 29 was adopted at the 14th session of the General Conference of the International Labour Organization (ILO) on 28 June 1930 in the city of Geneva, ratified by the USSR on 4 June 1956 and is one of the eight fundamental ILO labour conventions.

When Kyrgyzstan joined the ILO on 31 March 1992, it confirmed its legal continuity with regard to the ILO conventions previously ratified by the USSR.

Under Paragraph 3 Article 23 of the Constitution, forced labour is prohibited in Kyrgyzstan. Kyrgyzstan has ratified a number of international instruments that contain provisions on the prohibition of forced labour.

The main objective of the 2014 Protocol is to put an end to forced labour, take effective measures to prevent and stop its use, provide its victims with protection and have access to adequate and effective remedies, such as reparations and sanctions against offenders who use forced labour.

Following ratification of the 2014 Protocol, the Government of the Kyrgyz Republic, with the participation of the Confederation of Employers, public and other interested organizations, will develop an action plan for its implementation.

On amendments to the Law of the Kyrgyz Republic “On Mandatory Insurance of Civil Liability of Motor Vehicle Owners”

The President of the Kyrgyz Republic Sooronbai Zheenbekov signed the Law of the Kyrgyz Republic “On Amendments to the Law of the Kyrgyz Republic “On Compulsory Insurance of Civil Liability of Owners of Motor Vehicles”.

The Law was adopted by the Jogorku Kenesh on 13 December 2019 in order to protect the rights and legal interests of victims to compensation for damages caused by a traffic accident during the operation of vehicles, as well as to protect the property interests of vehicle owners who have insured their liability.

Article 31 of the Law of the Kyrgyz Republic “On Compulsory Insurance of Civil Liability of Motor Vehicle Owners”, adopted by the Law, has been supplemented by Part Two, which provides for a temporary period of occurrence of liability for failure to fulfil the obligation of compulsory insurance, depending on the category of the motor vehicle owner and/or driver.

In particular, established is the liability for failure to comply with the compulsory insurance obligation:

from 1 April 2020:

– for owners and/or drivers of motor vehicles registered in other States;

– for motor vehicles owned or operated by legal entities, including State and local authorities;

– for owners of heavy goods vehicles with a total permissible maximum weight exceeding 12 tons;

from 1 January 2021:

– For owners of trucks with a total authorized maximum weight of less than 12 tons;

– for owners of vehicles used for the transport of passengers;

From 1 January 2022:

for owners and (or) drivers of motor vehicles registered in accordance with the legislation of the Kyrgyz Republic.

The Law shall come into force after 15 days from the date of official publication.

On measures to provide the population with medicines and medical devices in response to the coronavirus pandemic

The Government of the Kyrgyz Republic has taken measures to provide the population with medicines and medical devices in connection with the pandemic of coronavirus infection. In order to prevent the further spread of coronavirus infection (COVID-19) on the territory of the Kyrgyz Republic in accordance with the laws of the Kyrgyz Republic “On the circulation of medicines”, “On the circulation of medical devices”, “On public health”, the Government of the Kyrgyz Republic has allowed pharmaceutical and business entities to supply medicines and medical devices without state registration included in the National List of vital medicines and medical devices and the List of medicines and medical devices necessary for the diagnosis and treatment of coronavirus infection approved by the Ministry of Health.

It should be noted that the supplied medicines and medical devices must be registered in the country of manufacture. In cases when the package of such goods is not labelled in Kyrgyz and Russian languages, it is allowed to use stickers in Kyrgyz and/or Russian languages. It is also necessary to provide translation of the instructions for medical use.

It is now also permitted to supply registered medicines and medical devices that differ in labeling (marking) and / or instructions for medical use.

Moreover, from now on, the production and sale of medical masks without a license and state registration is allowed on the territory of the Kyrgyz Republic.

The List of medicines and medical devices necessary for the diagnosis and treatment of coronavirus infection includes medicines, disposable medical products, medical equipment, disinfectants, personal protective equipment, laboratory diagnostic equipment, equipment for temporary medical posts at checkpoints, supplies, reagents, as well as waste disposal products. In total, 233 items were included in this List.

The Resolution shall become effective on the day of its official publication.

On the introduction of a temporary ban on the export of certain types of goods from the Kyrgyz Republic

In accordance with Article 47 of the Treaty on the Eurasian Economic Union of 29 May 2014, Articles 10 and 17 of the Constitutional Law of the Kyrgyz Republic on the Government of the Kyrgyz Republic The Government of the Kyrgyz Republic has decided:

To establish a temporary ban, for a period of six months, on export of certain types of goods from the Kyrgyz Republic (except for re-export, transit and humanitarian aid provided by the Government of the Kyrgyz Republic) according to the attached list.

The following types of goods are included in the list:

• Wheat and meslin (mixture of wheat and rye).
• Wheat flour.
• Vegetable oil.
• Rice.
• Pasta products.
• Sugar-sand.
• Chicken eggs.
• Iodized cooked salt for daily consumption.
• Feed (hay, straw, mixed fodder, bran and grain feed).
• Napkins and other antibacterial agents.
• Disinfectants.

The decree is subject to official publication and shall become effective on the date of its signing.

On introduction of temporary state regulation of prices for certain types of socially important goods

In order to ensure that socially important foodstuffs are economically accessible to the population, the state regulation of prices has been introduced for socially important foodstuffs included in the List of Goods for which temporary State regulation of prices on the domestic market of the Kyrgyz Republic may be introduced. The decree in question was signed by the Prime Minister of the Kyrgyz Republic, Muhammedkaly Abylgasiev.

This decision was made in connection with the current epidemiological situation in the world, in accordance with Article 90 of the Constitution of the Kyrgyz Republic, Article 5 of the Law of the Kyrgyz Republic “On Food Security”.

State regulation will apply to prices for wheat flour, bread, milk, vegetable oil, butter, butter, meat (beef, mutton, pork, poultry), sugar, rice, pasta, chicken eggs and potatoes. The restriction shall be valid for a period not exceeding 90 calendar days from the date of entry into force of this Regulation.

The State Agency of Antimonopoly Regulation under the Government of the Kyrgyz Republic has been instructed to set the maximum price level according to the Procedure of State Regulation of Prices for Socially Significant Goods.

It is noted that the List of goods for which temporary state regulation of prices can be introduced in the internal market of the Kyrgyz Republic was approved by the Resolution of the Government of the Kyrgyz Republic dated 22 April 2009 No. 242.

The Resolution comes into force from the date of its official publication.

On the adoption of provisional rules regulating the activities of financial and credit organizations

Decree of the NBKR Board dated 18 March 2020 No. 2020-П-12/13-1-(БС) adopted provisional rules for regulating activities of financial and credit organizations aimed at protecting the rights of consumers of banking services, as well as mitigating the negative consequences of a pandemic.

According to the provisional rules, banks and non-banking financial and credit organizations registered in the Kyrgyz Republic shall not:

• charge or levy any commissions and/or other payments related to the revision of the terms of loan agreements; and
• impose or levy penalties, including forfeit (fine/penalty), on borrowers for failure to fulfill / improper performance of obligations stipulated by loan agreements.

In addition, it was recommended that, in case there is a relevant application from the borrower, banks and non-banking financial and credit organizations revise the terms of payments on loans related to the circumstances of the distribution of COVID-19 and provide a delay of payments for at least 3 (three) months.

The Decree enters into force from the date of its official publication and shall be effective until adoption of the relevant decision by the Board of the National Bank of the Kyrgyz Republic.

On measures to minimize risks in the activities of banks and non-bank financial and credit institutions

Decree of the NBKR Board dated 23 March 2020 No. 2020-П-12/14-1-(БС) approved measures to minimize risks in the activities of banks and non-banking financial and credit organizations in the event of a threat of mass infection of the population to ensure the functioning of critical business processes of banks and non-banking financial and credit organizations.

The approved measures include:

• posting of information on issues of sanitary and epidemiological protection during the provision of financial services;
• preventing the accumulation of a large number of people, the mandatory installation of disinfectants, as well as ensuring that customers maintain a safe distance in line;
• providing employees who are in direct contact with customers with personal protective equipment;
• transferring personnel not directly involved in working with clients and not responsible for the critical infrastructure of the bank to the remote work mode;
• obligatory preliminary coordination with the NBKR of decisions to close / suspend the activities of separate structural units;
• ensuring the smooth functioning of separate structural units, ATMs, POS-terminals and automated self-service terminals; and
• providing on an ongoing basis the ability to solve problematic problems associated with the failure of equipment, software or other infrastructure.

In addition, during the period of the above decree, official correspondence of banks and non-banking financial and credit organizations with the NBKR may be carried out in electronic format.

On making temporary decisions on the issue of establishing economic norms and requirements mandatory for the banks and non-bank financial and credit organizations of the Kyrgyz Republic

Decree of the NBKR Board dated 24 March 2020 No. 2020-П-12/15-7-(НПА) adopted provisional decisions on the issue of establishing economic standards and requirements for banks and non-banking financial and credit organizations of the Kyrgyz Republic. In particular, such provisional decisions include the suspension of the following decrees of the NBKR Board:

• On approval of the Regulation “On requirements for the disclosure of information on the activities of a commercial bank” dated 30 October 2019 No. № 2019-П-12/54-4-(НПА); and
• On the Regulation “On the requirements for the formation of financial statements and the presentation of information by non-banking financial and credit organizations operating on the basis of a license (certificate) of the National Bank of the Kyrgyz Republic” dated 27 December 2003 No. 36/1.

The entry into force of the following decrees of the NBKR Board was also suspended:

• On Amending Certain Normative Legal Acts of the National Bank of the Kyrgyz Republic dated 27 December 2019 No. 2019-П-12/68-2-(НПА);
• On approval of the Regulation “On economic standards and requirements for commercial banks of the Kyrgyz Republic” dated 27 December 2019 No. 2019-П-12/68-3-(НПА); and
• On approval of the Regulation “On the calculation of the liquidity ratio of commercial banks” dated 27 December 2019 No. 2019-П-12/68-4-(НПА).

The following standards are established for commercial banks:

• liquidity ratio (K3.1) – from 1 April 2020 shall be at least 30 percent; and
• degree of credit risk for loans listed in subparagraph 6 of paragraph 4.3 of the Instructions for determining the standards of sufficiency (adequacy) of capital of commercial banks of the Kyrgyz Republic – 100 percent.

In addition to the above, starting from 30 March 2020 compliance with the standards (indicators) of short-term liquidity (K3.2) and instant liquidity (K3.3) was suspended.

In addition, banks and non-banking financial and credit organizations should create a reserve for covering potential losses in the amount of 100 percent for the amount of overdue accrued interest payments on loans that have been given the status of non-accrual of interest income, when overdue arrears of 270 days or more, associated with distribution of COVID-19.

On granting credits by the National Bank of the Kyrgyz Republic to commercial banks to mitigate the negative impact of the COVID-19 pandemic in the Kyrgyz Republic

Decree of the NBKR Board No. 2020-П-09\15-9-(НПА) dated 24 March 2020 adopted the Interim Regulation “On the provision of loans by the National Bank of the Kyrgyz Republic to commercial banks in order to mitigate the negative effects of the COVID-19 pandemic in the Kyrgyz Republic”. The Regulation defines the general conditions and procedures for provision of loans by the NBKR to a commercial bank in the Kyrgyz Republic licensed by the NBKR. In particular, such conditions include the following:

• a loan is provided to the bank in national currency on the terms of urgency, payment, repayment and security;
• a loan is provided to a bank to comply with mandatory reserve requirements, fulfill the economic and other NBKR standards, and timely fulfill obligations to depositors;
• a bank may apply to the NBKR for a loan from the date of entry into force of this Regulation and 30 June 2020;
• terms and conditions of the loan are determined by the NBKR Board, and the interest rate on the loan is set at the NBKR rate at the filing date of the application;
• a bank is entitled to request the loan no more than 5 (five) times within the period;
• a loan is provided on the day the bank submits the application, and the registration of the pledge is carried out within 10 (ten) business days from the date the loan was provided.

At the request of the NBKR, a bank provides a report on the use of loan and other necessary documents.

The Government of the Kyrgyz Republic has approved anti-crisis financial and fiscal measures to support entrepreneurial activity 

As part of the work on the economic consequences of the virus, on 31 March 2020 the Government of the Kyrgyz Republic has adopted a series of measures aimed at supporting entrepreneurial activity. The approved anti-crisis financial measures include:

• recommendation to the National Bank of the Kyrgyz Republic (hereinafter the “NBKR”) on conducting explanatory work among the population on the preference of remote banking services;

• recommendation to the NBKR to conduct credit auctions in order to provide the banking system with the necessary level of KGS liquidity to maintain lending to the real sector of the economy;

• recommendation to the NBKR to ease prudential requirements for commercial banks and non-banking financial and credit organizations for the period until 1 January 2022;

• working with commercial banks on the extension and restructuring of principal and interest on loans for a period of at least 3 months, including projects funded by the Government of the Kyrgyz Republic and the Russian-Kyrgyz Development Fund (hereinafter the “RKDF”) in support of small and medium business;

• extension of the dates of general meetings of shareholders until 1 July 2020;

• fixing the norm on the provision of benefits to domestic suppliers in the amount of 20 percent during the public procurement procedure;

• adjustment of public procurement contracts by the dates, the observance of which was affected by the introduction of a state of emergency;

• raising funds of the RKDF placed in the securities of issuers of the Russian Federation for preferential lending to sectors of the economy of the Kyrgyz Republic;

• simplification of the RKDF procedures to ensure maximum accessibility to credit resources;

• working with development partners to jointly form a business support fund for the most affected by the spread of coronavirus and the announcement of a state of emergency.

 

The approved fiscal measures to support entrepreneurial activity include:

• provision of deferment and installment plan for the payment of the amounts of tax debt and social security debt arising from the introduction of a state of emergency from 22 March 2020;

• non-application of tax sanctions and penalties for untimely fulfillment of tax obligations until 1 July 2020;

• recommendation to local authorities on the provision of a delay of 3 months for payments for rent of municipal property from 1 April 2020;

• extension of the terms for the widespread introduction of components of the electronic system of fiscalization of tax procedures until 1 2020;

• extension of the deadlines for the submission of a single tax return for individuals and individual entrepreneurs until 1 April 2021;

• extension of the deadlines for submission of reports by business entities on taxes and social contributions until 1 July 2020, subject to timely payments;

• extension of the moratorium on inspections by state regulatory authorities until 1 January 2022;

• introduction of restrictions on field tax audits until 1 January 2021, with the exception of:

scheduled inspections of business entities operating in the production and turnover of excisable groups of goods;

unscheduled inspections conducted in case of reorganization, liquidation of organizations and termination of activity of an individual entrepreneur;

unscheduled inspections and cross-checks carried out in the case of receipt by the tax authorities of documented information evidencing the facts of incorrect tax calculation by taxpayers after the completion of a state of emergency regime.

• recommendation to the relevant organizations within 3 months: not to cut off electricity, water, gas and other utilities, communication and Internet services, due to the presence of subscriber arrears; do not charge penalties, penalties for non-payment of utility bills (for electricity, water, gas, garbage collection, communication services, Internet, etc.);

• provision of deferrals for payments for the rental of state property for 3 months from 1 April 2020;
• introduction of a temporary ban on conducting bankruptcy proceedings of enterprises until 1 January 2021.

In addition, the Prime Minister of the Kyrgyz Republic, Muhammedkaly Abylgaziev, called on employers who still have financial opportunities to show solidarity and social responsibility, ensuring a minimum income level for their employees during the quarantine period.