OREANDA-NEWS. The government of Switzerland, the World Bank and the National Bank of the Kyrgyz republic signed a Memorandum of Understanding to create a Trust Fund on the development of the financial sector through which the Kyrgyz Republic will receive technical assistance to implement reforms in the financial sector.

The Trust Fund on the development of the financial sector will support further elaboration of the legal and regulatory and supervisory basis of the banking activities, microfinance organizations and credit unions. Besides, the project aims at increasing the inspectorate capacity of the National Bank of the Kyrgyz Republic which in turn will result in strengthening the financial stability of the sector.

For the purpose of the Trust Fund, the government of Switzerland allocates financing in the amount of more than one million US Dollars. Administration and monitoring of the activities within the framework of the Trust Fund will be carried out by the World Bank.

“We are glad to join the efforts with the World Bank to provide the technical assistance to the government of the Kyrgyz Republic for further advancement of the reforms in the financial sector of the republic, - stated Mr. Laurent Guye, the Ambassador of the Embassy of Switzerland in the Kyrgyz Republic. - Our support will promote to strengthen the National Bank as a regulatory and supervisory body of the banking sector, thus, promoting consolidation of viable financial markets”.

'There is a direct link between the development of the financial sector and accelerated economic growth. Adequately operating financial system ensures credible and acceptable payment services, makes beneficial and credible deposits accessible and opens access to short and long term financing to the businesses, - stated World Bank Country Manager for the Kyrgyz Republic, Mr. Alex Kremer. - Trust Fund for the development of the financial sector will help the country to ensure the efficient and stable operation of financial systems, as well as the allocation of resources to these important goals as increased productivity, poverty reduction, promotion of equal opportunities”.

“The National Bank of the Kyrgyz Republic highly values the support ??provided by the Government of Switzerland and the World Bank. Creation of the Trust Fund will contribute to addressing important objectives of the National Bank as increasing the stability of the financial sector and the management in financial institutions.We will direct efforts to strengthen the independence, efficiency and capacity of the banking supervision services along with the modernization of the systems of information and communication technologies”, - notes the Deputy Chairman of the National Bank of Zair Chokoev.

Project activities under the Trust Fund will complement the assistance provided by the World Bank of the Kyrgyz Republic in the amount of 8.85 million dollars under the Financial Sector Development Project, which aims at strengthening the stability of the financial sector and improved access to financial services.