EDB investment portfolio


9 projects

$115 million

1.5% of the total

EFSD investment portfolio


5 projects

$292 million

5% of the total

Kyrgyz Republic became a full member of Eurasian Development Bank in August 2011. Its contribution to the Bank’s capital is US $100,000.



In 3Q2018, the annual rate of gold output decrease at the Kumtor mine slowed, thereby interrupting the downward trend in overall economic growth. While in 2Q2018 output decreased by 0.8% YoY, in 3Q2018 GDP grew by 2.6% YoY. In January to September 2018, GDP grew by 1.2% compared to the same period of 2017.

While the mining output decline continued, a recovery in industrial output was recorded in 3Q2018 (+0.3% compared to 3Q2017). The agriculture (+2.8% YoY), construction (+8.2% YoY) and service (+2.2% YoY) sectors increased their contributions to GDP growth.

Turning to GDP by expenditure, consumption was a key factor behind growth in 2018. Consumer demand has been recovering as real household income grew. Investment is also supporting the economy. Net export trends limit economic activity, as real export volumes are decreasing and imports increasing.

The composite leading indicator calculated by the EEC heralds a recovery of economic activity in the short term. The upward trend in annual GDP growth is likely to continue into the 4Q2018. Against the previous year’s low base, faster growth of Kumtor mine output can be expected in 4Q2018. In other sectors of the economy, business activity will be somewhat higher compared to the situation in the first half of 2018, against the backdrop of the calendar factor and high and persistent consumer activity.


In 3Q2018 food deflation continued, which helped keep the consumer price index low. A weak price situation in the regional grain market and the world markets of sugar and vegetable oil contributed to deflation in the domestic food market. This was supported by 2018’s greater supply of fruit and vegetable produce than in the previous year. Despite accelerated growth in motor fuel prices as world oil prices increased, some strengthening of the som to U.S. dollar exchange rate during most of 2018 kept inflation low in the non-food sector. During the 3Q2018 the consumer price index was volatile, and at the end of September 2018 growth amounted to 1.2% YoY, with food prices decreasing by 2.8% YoY, 2.6% YoY growth in the non-food sector and 6.0% YoY growth in the service sector.

In first months of 4Q2018, inflation remained below its target range, kept down by still weak prices in foreign food markets.

External Sector

The current account deficit in the first half of 2018 exceeded the previous year’s level. The wider trade balance deficit was caused by imports growing more rapidly than exports. The decrease in export results from declining gold shipments in nominal terms, despite an upward trend demonstrated by other exports. Import growth is mainly attributable to the volume of imported consumer goods, that increased as consumer demand recovered. The trends in net inflow of remittances is switching to stable growth. Capital inflow on the financial account is driven by other investments.

In 3Q2018 the appreciation of the real effective som exchange rate strengthened (+5.6% compared to 3Q2017). This is mainly due to som strengthening in real terms versus the Russian ruble (+8.7% YoY) and the Kazakh tenge (+2.4% YoY).

Fiscal Policy

In January to September 2018 the State budget posted a deficit of 0.02% of GDP. The year before, the budget deficit was 1.8% of GDP. Budget income was approximately at the level of January to September 2017. Tax income growth (+15.4% from January to September 2017) was offset by a decrease in non-tax incomes (–20.1% YoY), while official transfers halved, and social allocations were reduced. Current expenses grew by 5.1% compared to January to September 2017, while expenses on the purchase of non-financial assets fell by 38.9% YoY. Total expenditures decreased by 5.1% compared to January to September 2017.

Public debt decreased by 4.1% compared to early 2018, to 56.2% of GDP as of end of September 2018. External public debt decreased (–7.7% compared to the beginning of the year), while domestic public debt grew by 34.4% during the same period. External public debt was reduced as the Russian Federation wrote off debt of USD 240.0 million. Domestic public debt growth was mainly due to State treasury bonds issued.

Monetary Policy

The National Bank’s policy rate was unchanged during 3Q2018, staying at 4.75%. Despite the current low inflation, mid-term risks in the external environment prompted the monetary authorities to keep the current stance of the monetary policy. The average money market rate was 1.7% in 3Q2018. The volume of credit resources issued by the National Bank was 580.2 million soms.

As the earlier observed trend of the appreciation of the som to the U.S. dollar reversed, the monetary authority intervened in the foreign exchange market selling a total of USD 38.7 million during the 3Q2018.

The average interest rate on newly accepted deposits in national currency was 2.4% in the 3Q2018 (compared to 2.7% the year before). The interest rate on bank loans in national currency was 20.1% on average in 3Q2018 (opposed to 19.2% the year before).

The volume of newly issued loans grew by 3.2% compared to 3Q2017, mainly on account of the growth of loans issued in national currency (+4.0% YoY). Despite the lowered deposit interest rates, the volume of newly accepted deposits in national currency grew by 11.9% YoY in 3Q2018.

Публикации по стране

Belt and Road Transport Corridors: Barriers and Investments
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02 April 2019
The delegation of the Eurasian Development Bank, as the Resources Manager of the Eurasian Fund for Stabilization and Development (EFSD), visited the Kyrgyz Republic to discuss cooperation between the EFSD and Kyrgyzstan
29 March 2019
The Ministry of Finance of the Kyrgyz Republic and the Eurasian Development Bank (EDB), as the Resources Manager of the Eurasian Fund for Stabilization and Development (EFSD), signed an agreement on the provision of an EFSD grant for the Caravan of Health Project and a supplementary agreement to the investment credit agreement to finance Toktogul HPP Rehabilitation (Phase 2)
28 March 2019
The Eurasian Development Bank (EDB) and the Russian–Kyrgyz Development Fund (RKDF) signed a trilateral  memorandum of understanding, cooperation and interaction. The EDB and RKDF intend to consider participation as strategic investors in RSK Bank in order to ensure its capitalisation and enhance its support to the economic development of the Kyrgyz Republic
28 March 2019
The Eurasian Development Bank (EDB), Rusprom and Transcom signed a trilateral memorandum of cooperation
08 August 2018
The Eurasian Development Bank (EDB) and Halyk Bank Kyrgyzstan entered into framework agreements for a total of US $5 million to support trade finance and SME finance programmes (Projects). The instruments were signed on 8 August 2018 by Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities at the EDB, and Aikyn Kabulov, Chairman of the Management Board at Halyk Bank Kyrgyzstan. The trade finance agreement is the EDB’s first transaction of this kind in Kyrgyzstan
06 August 2018
The net profits of the Eurasian Development Bank (EDB) amounted to US $37.542 million in the first half of 2018, while the target fixed in the bank's strategy until 2022 for the whole year is at US $32 million
25 July 2018
The EDB announces the completion of the technical issue of 001P-01 bond of the nominal value of RUB 10 billion at the Moscow Stock Exchange under the programme (identification number 4-00002-L-001P-02E of 14 June 2018). The coupon rate is 7.60% per annum, the yield is 7.74%. The bond maturity is 1.5 years
19 July 2018
The Council of the Eurasian Fund for Stabilization and Development (EFSD), based on the outcomes of voting by correspondence, has approved the EFSD Annual Report 2017. The EFSD Annual report includes information on the activities undertaken by the Eurasian Development Bank in its capacity of the EFSD Resources Manager and related to manging and administering the EFSD resources in 2017
17 July 2018
Andrey Beliyaninov, Chairman of the Management Board of the Eurasian Development Bank, will talk at the Financing the Real Sector of the Economy Business Forum to take place on 19 July in Moscow
16 July 2018
Applications are invited for enrolment to the International Eurasian Integration School 2018 titled The Eurasian Economic Union: Contouring the Future. The school has been launched by the Russian International Affairs Council, the Alexander Gorchakov Public Diplomacy Fund, the Eurasian Economic Commission, and the Eurasian Development Bank

Bishkek Representative Office

21 Erkindik Blvd., Bishkek, 720040, Kyrgyz Republic

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