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A new dialogue platform will help the interaction of the business community and financial development institutions

May 23, 2024

On May 22, 2024, the head of the International Business Council Askar Sydykov took part in the first meeting of the Advisory Group on improving the activities of development funds and state banks.

At the meeting, held at the secretariat of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic, problematic issues in this area were discussed and consolidated proposals were developed. Issues regarding the composition and action plan of the Advisory Group were considered, as well as proposals for improving the mechanisms of interaction between the business community and financial development institutions aimed at creating favorable conditions for access to finance.

IBC proposed to collect the main proposals of business to increase access to financing - on interest rates, on collateral and other requirements, as well as on improving the mechanisms for providing financing from development funds and banks with state participation.

“Our association constantly receives requests from entrepreneurs regarding difficult access to financial resources both under government programs and private sector programs. Therefore, we, together with colleagues from other business associations, are constantly working to improve access to financing for businesses,” said Askar Sydykov.

IBC also offers assistance in attracting investments to Kyrgyzstan on the basis of a catalog of projects developed by the Social Partnership Fund.

To support startups and develop the innovative economy, IBC recommends working together on ways to introduce venture and angel financing institutions in Kyrgyzstan.

“Currently, our promising startups are forced to attract financial resources from near and far abroad countries. Meanwhile, the mechanisms of venture and angel financing, along with other mechanisms for entering capital, make it possible to share the risks of investors with entrepreneurs and not burden entrepreneurs with unnecessary debt, as well as to be involved in the process of enterprise management,” said Sydykov.

IBC welcomes the creation of such a dialogue platform and will try to make all the necessary proposals from the business side.

The Advisory Group was formed in pursuance of the decision of the Investment Council dated May 6, 2024. In order to increase the efficiency of the use of financial resources, as well as the speed of decision-making in the selection and development of priority projects, the Social Partnership Fund for Regional Development (Project Office) was instructed to create an expert group of responsible employees of development funds and banks with state share on the basis of the Project Office under the Coordination Council of Development Institutions of the Kyrgyz Republic, formed by a resolution of the Cabinet of Ministers of the Kyrgyz Republic dated June 17, 2022.

The Advisory Group included representatives of the Ministry of Economy and Commerce of the Kyrgyz Republic, the Ministry of Finance of the Kyrgyz Republic, the National Investment Agency under the President of the Kyrgyz Republic, the PPP Center at the NAI, the State Development Bank, Aiyl Bank OJSC, RSK Bank OJSC, the Russian-Kyrgyz Development Fund , Azerbaijan-Kyrgyz Development Fund, Hungarian-Kyrgyz Development Fund, Social Partnership Fund for Regional Development, International Business Council, Association for the Development of Agro-Industrial Complex, JIA Association and the Union of Banks of Kyrgyzstan.