The FINANCIAL — The Asian Development Bank (ADB) is providing the Kyrgyz Republic a $20 million grant to support a new round of reforms aimed at expanding the private sector’s role as a driver of sustainable economic growth.
“The country’s national development strategy seeks to create a conducive environment for the private sector to drive economic growth, which is essential to diversify the economy and create jobs,” said Priyanka Sood, Financial Sector Specialist in ADB’s Central and West Asia Department. “The Second Investment Climate Improvement Program is targeted toward systematically addressing a number of policy and institutional constraints that continue to hamper private sector development, and limit its contribution to economic development.”
ADB’s First Investment Climate Improvement Program from 2008 to 2014 helped reduce business costs in the Kyrgyz Republic by reducing the number of required business licenses and permits, implementing a one-stop shop business registration system, increasing access to finance—particularly through leasing—and creating a single window for pre-customs clearance.
Building on the progress made under the first program, the second program will support reforms to deepen access to finance and financial services, including the establishment of a risk-sharing facility for small and medium-sized enterprises. The enabling environment for public-private partnerships (PPP) will be further strengthened, and more PPP projects will be developed. Support will also be provided to help diversify trade and investment, improve transparency and ease of doing business, and enhance the country’s integrated tax administration system, according to ADB.
ADB’s assistance from its concessional Asian Development Fund will provide the budgetary support needed by the Kyrgyz government to cover part of its development financing needs as it rolls out its policy reforms. The reforms will be carried out over 3 subprograms, with the full program running for over 4 years, from July 2014 until October 2018.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.