Bishkek, Kyrgyz Republic, July 24, 2009
—IFC, a member of the World Bank Group, announced that it will work with the government of the Kyrgyz Republic to improve the country’s business environment by reforming government inspections and improving the tax system for small and medium enterprises.
Managers of IFC’s Business Enabling Environment Project, in partnership with the government of Switzerland, recently signed a memorandum of understanding and 2009-2010 action plans with the Economic Development and Trade Ministry and the State Committee on Taxes and Revenues of the Kyrgyz Republic. The documents outline a work plan aimed at improving the regulatory environment for SMEs in the country.
The memorandum and action plans highlight a strategy for collaboration between the Kyrgyz government and IFC to streamline government inspections practices and improve SME taxation. IFC monitors changes to the business environment in the Kyrgyz Republic through nationwide surveys of the private sector. Other efforts include helping increase entrepreneurs’ awareness of their legal rights and fostering dialogue between the government and private sector.
Akylbek Japarov, the Economic Development and Trade Minister of the Kyrgyz Republic, stressed the government’s commitment to improving the business environment. “We hope to create a more favorable business environment for the private sector and see SMEs’ contribution to the country’s GDP increase by up to 60 percent. We are counting on IFC’s assistance to help us achieve this goal,” he said.
“The signing of the memorandum and the action plans is an important step in effective collaboration between the Kyrgyz government and IFC in improving the regulatory environment for SMEs,” said Ellen Payne, Project Manager for IFC’s Business Enabling Environment Project. “IFC is also looking forward to supporting the Kyrgyz government in implementing private sector reforms—important efforts which tie into the country’s
Doing Business
rating.”
The Kyrgyz Republic joined IFC in 1993. IFC commitments to the country to date total nearly $80 million, including investments in the private sector and advisory services focusing on financial infrastructure, microfinance, corporate governance, and business environment reforms.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
About the State Secretariat for Economic Affairs
Funding for the project is provided by the State Secretariat for Economic Affairs (SECO), the Swiss Confederation’s competence center for all core issues related to economic policy. Its aim is to create basic regulatory and economic policy conditions to enable businesses to flourish and benefit all. SECO represents Switzerland in large multilateral trade organizations and international negotiations, and is involved in efforts to reduce poverty and help countries in transition build sustainable democratic societies and viable market economies. Each year, Switzerland spends about $1.5 billion on development cooperation and transition assistance to developing countries. For more information, visit
www.swisscoop.kg
.
