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EBRD publishes new strategy for Kyrgyz Republic
Bank confirms its support
The European Bank for Reconstruction and Development will continue to help the Kyrgyz Republic build on its clear improvements in macro-economic performance and its progress towards implementation of the principles of multi-party democracy, pluralism and market economy. The Bank's new strategy for the Kyrgyz Republic - published today on the Bank's website, www.ebrd.com - cautions, however, that further improvements to the investment environment are essential.
The Kyrgyz Republic must pay particular attention to privatisation of the remaining state shareholdings, corporate governance and strengthening of the financial sector. Enhanced cooperation with neighbouring countries and reduced regional trade restrictions are vital for the Kyrgyz Republic to attract investment and further advance its economic performance.
The EBRD strategy for the next two years is to concentrate its efforts on support for small and medium-sized enterprises, the development of the financial sector, and attracting investment to key natural resources projects. Through policy dialogue with the government, the EBRD will help develop and improve transparency, governance and the investment climate.
In the context of the high public indebtedness of the country, the EBRD will respect the government's commitment to budget restraint by focusing on the private sector where there is no need for sovereign financing or guarantees.
Adding to the private-sector projects that the EBRD has co-financed - Kumtor gold mine, Hyatt-Regency Hotel, Demir Kyrgyz International Bank, and the Kyrgyz Investment and Credit Bank (KICB) - the Bank recently launched the Micro and Small Enterprise Finance Facility and the Trade Facilitation Programme, for Kyrgyz commercial banks, as well as five investments in local SMEs via its Direct Equity Fund (DIF) programme.
The EBRD has signed 21 investments in Kyrgyz Republic with a total commitment of €174.5 million. Five projects are in the public sector, with one aimed at the modernisation of the telecommunications network, two focusing on upgrading parts of the electricity transmission network, and two in the agribusiness sector.
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