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IFC Helps the Kyrgyz Republic to Improve Investment Climate

Published: 25 September 2013 г.
Bishkek, Kyrgyz Republic, September 25, 2013 – IFC, a member of the World Bank Group, with the continuous support of the Swiss Government and the UK is helping the Kyrgyz Republic to create smarter regulatory environment for businesses and generate investment to boost the private sector, create jobs, and support sustainable economic development. 
 
Since 2008, the IFC’s Investment Climate Project, with financial support of the Government of Switzerland has made a significant contribution to improving the business environment through reforming the tax administration and business regulation to reduce costs for businesses and increase transparency of state governance. 

As a result of these reforms with focus on designing and implementing a novel risk-based approach to business inspections and tax audits, the number of planned inspections has sharply reduced with cost savings of US$1.7 million for the private sector. The duration of inspections has reduced by 50 percent for medium and large companies and 90 percent for small businesses while introduction of checklists increased transparency by nearly 50 percent. The project also helped simplify VAT reporting, resulting in savings of US$2.3 million for the private sector.

“IFC supported the Ministry of Economy of the Kyrgyz Republic in its efforts to reduce administrative barriers and create more favorable environment for doing business,” said Sanjar Mukanbetov, Deputy Minister. “As a result of our close cooperation, the effective and comprehensive measures have been implemented to create a transparent and effective system for business regulations.” 

To further ensure the consistency of the reforms, IFC is launching the next phase of the project to improve the business environment with focus on the agri-sector and enhance the investment policy framework. The Government of Switzerland and the United Kingdom’s Department for International Development (DFID) are donor-partners of the project. 

“Despite the many reforms carried on over the past decade, the Kyrgyz Republic is facing a number of challenges in attracting investment, growing, and diversifying the economy,” said Serhiy Osavoluk, an IFC Project Manager. “IFC will continue supporting the country as it pursues investment climate reforms, removes key regulatory obstacles, and develops stronger investment policy legislation.”