In the Kyrgyz republic we focus on:
Stabilising and developing the financial sector: The EBRD promotes stabilisation, intermediation and confidence building in the financial sector. It does so by providing financial institutions with targeted loans, where possible in local currency, possible equity investments, and through technical assistance and policy dialogue.
Supporting development of local private enterprises: The EBRD will target its support at projects in the corporate sector that aim to increase productivity, production of higher value-added goods and products that can be competitive in foreign markets, raising business standards, and improving energy efficiency.
Strengthening critical infrastructure: We co-finance regional and municipal infrastructure, including water supply, solid waste management and urban transport. Many projects put a particular emphasis on energy efficiency. Due to debt sustainability concerns, any public infrastructure projects would be financed with co-financing grants or concessional loans from other IFIs or bilateral donors.
Policy Dialogue: The EBRD conducts policy dialogue to address remaining issues in the investment climate, to further its efforts to strengthen the regulatory and legal basis for energy efficiency investment and to improve the macro-prudential environment for local currency finance. We will continue to support the Secretariat of the Council for Business Development and Investment through ongoing technical assistance.
In addition, the EBRD will seek to support through the above priorities the reduction of regional economic disparities, by increasing its outreach to less developed rural areas, in particular in the southern regions, and addressing gender gaps across sectors.
The EBRD’s latest Kyrgyz Republic strategy was adopted on 1 September 2011
Current EBRD forecast for Kyrgyz Republic Real GDP Growth in 2015 3.2%
Economic growth has moderated significantly in 2014 after a strong rebound in 2013. Growth in 2013 reached 10.5 per cent, driven by high gold production at the Kumtor mine. A slow-down in remittances from Russia and in exports has contributed to the drop in growth this year.
Further steps were taken towards ECU accession. The road map for Kyrgyz Republic’s accession to the Eurasian Customs Union (ECU) was endorsed by Belarus, Kazakhstan and Russia on 29 May 2014. The accession process is expected to be finalised by the end of 2014.
Parliament has approved the key terms of a new deal between Kumtor gold mine and Canadian company Centerra Gold. The decision was based on a non-binding Heads of Agreement (HoA), which the parties entered into in September 2013. However, significant uncertainty still surrounds the future of the mine.