Kyrgyz Republic: Third Review Under the Three-Year Arrangement Under the Extended Credit Facility, and Request for Modification of Performance Criteria-Press Release; Staff Report
International Monetary Fund. Middle East and Central Asia Dept.
Jun 2017 · International Monetary Fund
Ebook
126
Pages
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About this ebook
After a difficult start of the year, pressures on the economy are moderating, helped by a stabilizing regional context. Growth, however, is expected to remain lower for longer, making adjustment policies even more important. While the appreciation of the exchange rate, together with the Public Investment Projects rescheduling, has reduced debt vulnerabilities, risks to the debt outlook persist. The authorities are taking additional efforts to adhere to the 2016 fiscal targets, but are asking for a relaxation of the 2017 targets given an improved debt outlook and a still weak economy. Despite declining dollarization, financial sector vulnerabilities remain high.
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