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AIIB to support Kazakhstan’s gov't in mitigating COVID-19 impact

Business Materials 6 July 2020 09:36
AIIB to support Kazakhstan’s gov't in mitigating COVID-19 impact

BAKU, Azerbaijan, Jul. 6

By Nargiz Sadikhova - Trend:

The Asian Infrastructure Investment Bank’s (AIIB) has approved a loan of 661.8 million euros (approximately $750 million) to provide budgetary support to Kazakhstan’s Government in mitigating the impact of COVID-19, Trend reports with reference to AIIB.

“The pandemic is disrupting Kazakhstan’s economic activities. Employment and livelihoods are adversely impacted, particularly among the poor and vulnerable. Women are likely most affected as they account for more than 65 percent of the labor force in hard-hit sectors. The oil price shock has significantly brought down export revenues. Without a fiscal response, the economy is expected to contract in real terms by 5.5 percent in 2020. Poverty rates may reach 11-13 percent from the current 6.6 percent level,” the report said.

The loan will finance Kazakhstan’s COVID-19 Active Response and Expenditure Support (CARES) Program, which supports the country’s immediate COVID-19 health policy response, social protection and employment recovery measures, as well as stimulus measures.

Funded by AIIB’s Crisis Recovery Facility (CRF) and co-financed with the Asian Development Bank (ADB), the financing will fund measures to mitigate the impacts of higher food prices on vulnerable groups, an increase in social payments, new tax incentives to alleviate the financial burden of businesses and cash payments to the unemployed.

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia.

Headquartered in Beijing, the bank began operations in January 2016 and have now grown to 102 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.

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