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EBRD adopts new strategy for Kyrgyz Republic
Two years after the “Tulip Revolution” of March 2005 the Kyrgyz Republic still
faces major challenges. Despite prudent and successful macroeconomic policies,
the country continues to be at risk to external or internal shocks. In its new
strategy for the Kyrgyz Republic the EBRD calls on the authorities to
create a business climate that supports existing investors and attracts much
needed new investments in private industrial and financial companies.
The key challenge, the EBRD finds, is to create an environment which is
conducive to the development of a sustainable private sector. To achieve this
goal it is necessary to tackle corruption, increase transparency and corporate
governance, improve tariff regulations and facilitate the consolidation of the
financial sector. Another priority is to improve the country’s infrastructure
and energy network.
The EBRD is committed to support these endeavours and will focus its
activities on the following:
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Fostering the private sector: The development of private businesses remains
the EBRD’s key objective, with investments targeting agribusiness, property
and tourism, natural resources and consumer services to contribute to the
diversification of the country’s economy. The Bank will expand its successful
programme to finance micro and small enterprises.
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Improving the competitiveness of the financial sector: The EBRD will continue
to support the development of the sector by focussing on strengthening its
partners and introducing new products. The Bank will also work with the
National Bank on supervision issues with a view to strengthening the sector.
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Support for critical infrastructure: The EBRD will focus on non-sovereign
infrastructure projects. The country has urgent investment needs in generation
and distribution of electricity and gas, municipal waste, water, heating and
urban transport.
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Policy dialogue: The Bank will enhance its dialogue with the government about
the investment climate and bottlenecks affecting local and regional investors,
in coordination with other international financial institutions, donors and
the business community.
To-date, the EBRD has invested €185 million in 50 projects in the Kyrgyz
Republic and mobilised another €538 million from its partners. The country is
part of the Early Transition Countries Initiative which allows the Bank to
target local enterprises and smaller investments through a custom-made
approach to financing, blending technical assistance and streamlined
processing.
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