Advisory Projects in the Kyrgyz Republic

CURRENT PROJECTS

Azerbaijan & Central Asia Microfinance Transformation Support Project
Azerbaijan-Central Asia Leasing Facility
Azerbaijan and Central Asia Primary Mortgage Market Development Project
Central Asia Corporate Governance Project
Kyrgyz Republic Business Enabling Environment Project


COMPLETED PROJECTS

CURRENT PROJECTS

Azerbaijan & Central Asia Microfinance Transformation Support Project
2008 – present
Supported with funds from the Ministry of Foreign Affairs of the Netherlands and IFC

The Project is centered in Almaty and its objectives are to assist and support Micro Finance Institutions (MFIs) based in Azerbaijan, Tajikistan, the Kyrgyz Republic, and Kazakhstan. It focuses on those institutions that wish to transform their activities from being traditionally credit based to being able to provide their customers with a broader range of financial services. Normally these services would include the acceptance of deposits and could also require profiling of institutions before they are able to obtain a full banking license.
In keeping with the IFC strategy for Central Asia, which is to support competitiveness of the private sector in areas with social development aspects such as micro loans to the poor, IFC brings additionality through the Project by aiming to combine advisory services with investment funds. This leverages the effectiveness of both components in enabling MFIs to expand their outreach and services and thereby help their clients to raise their standards of living and improve their livelihoods.
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Kyrgyz Republic Business Enabling Environment Project
www.ifc.org/beekg
2008 – present
Supported with funds from the State Secretariat for Economic Affairs of Switzerland (SECO)

To improve the business climate and help facilitate the growth of the private sector in Kyrgyz Republic, the project works with the government to identify and remove regulatory barriers to business entry, operations. The project monitors and assesses the effectiveness of these reforms through surveys of the private sector, and increases the legal awareness of entrepreneurs through outreach and advocacy work.
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The Challenge
According to official estimates, in Kyrgyz Republic the private sector accounts for 75 percent of GDP and 80 percent of employment. A difficult business environment – marked by excessive and often haphazard government regulation, complicated administrative procedures, and contradictory legal provisions – remains a key barrier to further private sector growth and employment creation. Entrepreneurs’ lack of understanding of their rights and responsibilities exacerbates the situation.

The IFC Approach
This project builds on IFC’s significant hands-on experience in improving business processes in the region. In the Kyrgyz Republic, IFC works with relevant government agencies to streamline inspections practices and tax administration.
In the tax sphere, the project assists the government in developing and implementing a risk-based audit system, and works to streamline special tax regimes for small and medium businesses with the goal of balancing administrative simplicity and equitable treatment of all taxpayers. In the field of inspections, the project focuses on in-depth work with inspecting agencies to improve legislation governing inspections procedures and to assist in translating these legislative changes into improvements on the ground.
The project monitors changes to the business environment in the Kyrgyz Republic through regular surveys of the private sector. The project also rolls out a wide-reaching public education campaign to increase private sector awareness of their rights, through mass media attention, training events for entrepreneurs and development of easy-to-understand publications.

Anticipated Impact:
• Decreased frequency of inspections for most entrepreneurs
• Business inspections determined by a systematic approach to identify and target the riskiest enterprises
• Streamlined taxation practices for the small business sector, increased tax compliance and revenue for the government
• Increased awareness of government officials of regulating procedures
• Increased awareness of entrepreneurs about their rights and responsibilities

Central Asia Corporate Governance Project
www.ifc.org/cacgp
2006 – present
Supported with IFC funds

The project helps local joint stock companies and banks strengthen their corporate governance practices with a view to improving their operations and increasing their ability to attract investment and financing. In addition, the project works with policymakers to improve the regulatory framework for corporate governance and increase the region's overall investment climate and the business-enabling environment. The project was launched in Kazakhstan and is currently expanding to Tajikistan and the Kyrgyz Republic.
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Azerbaijan and Central Asia Primary Mortgage Market Development
Phase 1, 2005 – 2006, supported with funds from the State Secretariat for Economic Affairs of Switzerland (SECO)
Phase 2, 2006 – present, supported with funds from the Ministry of Economic Affairs of the Netherlands and the State Secretariat for Economic Affairs of Switzerland (SECO)

The project focuses on improving the housing finance legislative framework in Azerbaijan and Central Asia by building institutional capacity for mortgage lending and raising mortgage awareness. By partnering with policymakers, banks, and key stakeholders in the mortgage market, the project works to increase access to affordable housing in Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan.
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Azerbaijan-Central Asia Leasing Facility
www.ifc.org/acalf
2005 – present
Supported with funds from the State Secretariat for Economic Affairs of Switzerland (SECO)

The project facilitates the development of the leasing industry in Azerbaijan, Kyrgyz Republic, Tajikistan and Uzbekistan by strengthening the capacity of selected financial institutions, improving their Management Information Systems, and facilitating improvements in the regulatory framework for leasing in each country.
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