President Tokayev announces $10 bn-worth measures to support quarantine-affected people and businesses

"We must continue preparing our healthcare system for any case scenarios taking into account the constantly incoming information, all negative and positive experience from other countries. We should not slow down and say that we have done everything possible," the President of Kazakhstan Kassym-Jomart Tokayev said speaking at a meeting of the State Commission on the State of Emergency established due to the outbreak of the Covid-19 pandemic.

The Government will ensure full isolation of the quarantine zones in Nur-Sultan and Almaty, increase disinfection measures, tighten transportation restrictions, provide maximum support to vulnerable groups of people, especially older people and those with chronic diseases. The Government and regional authorities will ensure additional payments to doctors, police, and other professionals involved in containing coronavirus.

All public service centers will ensure the provision of online services, primarily through the e-gov portal. The state is expanding access to mobile communications and the Internet, especially to educational resources, social networks, and instant messengers.

"For the period of emergency, even in the case of arrears, the provision of communication services should be continued. Access to all Kazakh Internet resources should be free," the President said.

The priority of the Government is to ensure social stability in the country during the state of emergency. In addition to the ban on the accrual of fines and penalties, the President instructed to suspend the payment of principal and interest on all loans of the population affected by the crisis. "I expect full understanding and civic solidarity from banks."

Persons who have lost income due to the introduction of the state of emergency will receive monthly payments from the Government in the amount of one minimum wage. In total, at least 1.5 million people can count on this assistance.

Free grocery sets will be provided regularly to large families, the disabled, and other socially vulnerable groups.
In every community and city, there is enough food and basic necessities, the President stressed. At the same time, the Government will introduce a price regulation for the list of socially significant goods.

"In a crisis, we must give an adequate economic response, rely on healthy, competitive entrepreneurship, help to survive, and become stronger." The state will ensure the suspension of payments of principal and interest on all loans to small and medium-sized businesses affected by the current negative situation. Small and medium enterprises will receive a deferral on all types of taxes and other mandatory payments for three months. The Government will also consider a temporary reduction in VAT on agricultural and food products, as well as zeroing customs duties on critical imports.

The central and regional authorities and quasi-state sector entities will suspend the collection of the rental fees on their property for SMEs for three months.

Financing of the state program "Economics of Simple Things" (support for manufacturers) will be increased to 1 trillion tenge ($2.25 bn). In addition to this, 600 billion tenge ($1.35 bn) will be used to finance SMEs' working capital.

The President also proposed to allocate 1 trillion tenge for the capitalization of the "Employment Roadmap" program($2.25 bn), which provides for the stimulation of private entrepreneurship, development of infrastructure and housing and communal services, as well as vocational training and employment assistance. "This will create 250 thousand jobs and help us to implement nation-wide and local projects, including the construction of reservoirs, dams, and other facilities," Tokayev said.
The President also set the task of stabilizing the tenge exchange rate. Quasi-state enterprises will be required to place part of their export revenues in the domestic foreign exchange market. State-owned companies will gradually return foreign currency deposits to Kazakhstan's financial system. Besides, national companies must pay out dividends to the state for the last year in the amount of up to 100 percent of net income, the President emphasized.

The total package of anti-crisis measures, excluding tax preferences and support at the local level, will amount to 4.4 trillion tenge or $10 bn.

"This crisis will serve as a shake-up for the state apparatus and domestic businesses. Its lessons must be kept in mind. So, in addition to operational measures, we have to develop and adopt systemic approaches with a view to life after the stabilization of the situation. We are on the verge of a completely new global world in which Kazakhstan has to find its rightful place. I want to emphasize that, despite the complexity of the situation, it is far from catastrophic. We have all the potentials and reserves," the President concluded.