Europe, Middle East & North Africa

IFC Helps Kyrgyz Businesses Save Time and Money

July 14, 2011 — IFC, with support from Switzerland, helped improve the inspections process for Kyrgyz businesses by advising the Kyrgyz government on drafting amendments to the new Inspections Law, which was adopted in June. The new law introduces risk-based inspections, which will reduce the compliance burden for many firms.

"This is a very positive development for our business community," says Uluk Kydyrbaev, Executive Director of the Bishkek Business Club. "Selecting businesses to be inspected in accordance with their level of risk will significantly reduce the number of inspections and help entrepreneurs save time and money."

Increasing Transparency to Aid Businesses

The new procedures decrease the inspection time from 30 calendar days to five working days for small businesses, and from 30 calendar days to 15 working days for larger businesses. Additionally, state agencies will introduce inspection checklists to increase transparency and raise awareness among entrepreneurs of inspections requirements. And business owners welcome the changes.

Alexander Belkov directs production at seed supplier OJSC MIS, in the fertile Chui region of Kyrgyz Republic, and says that he will be happy to see business inspections become less burdensome for local enterprises.

"From April to December of last year alone, nine different state agencies inspected our company," says Alexander. "The inspections process was too long and complicated, interfered with our day-to-day business, and did not help to bring about any positive changes."

Improving Efficiency for All Participants

Sanjar Mukanbetov, Deputy Minister of Economic Regulation of the Kyrgyz Republic, says, "The new legislation will make the inspections system more efficient for both businesses and inspectors, supporting health and safety standards, and making it easier for businesses to comply with regulations.

"We are very grateful to IFC for being our long-standing partner in facilitating inspection system reform,” he adds.

The IFC Investment Climate Project, in partnership with Swiss agency SECO, the Kyrgyz Ministry of Economic Regulation, and USAID has supported inspections reform in Kyrgyz Republic since 2009. This project is part of IFC's broader regional effort to improve the investment climate in Eastern Europe and Central Asia.