EBRD Adopts New strategy for Kyrgyz Republic
OREANDA-NEWS. June 26, 2007. 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, reported the press-centre of EBRD.
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:
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.
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.
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.
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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