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IFC Supports Legislative Reforms to Strengthen Financial Infrastructure in Kyrgyz Republic


In Bishkek:
Kymbat Ybyshova
Phone (+996312) 626162
E-mail: KYbyshova@ifc.org

In Moscow:
Nezhdana Bukova
Phone (+7495) 411 7555
E-mail: NBukova@ifc.org


Bishkek, Kyrgyz Republic, February 10, 2010—IFC, a member of the World Bank Group, is helping create a legal framework for sharing credit information in the Kyrgyz Republic to enable the credit bureau to operate more efficiently and increase access to finance for small businesses and individual consumers.

IFC hosted the first roundtable in Bishkek to discuss the draft law with representatives of the government and financial sector.  The discussion covered best practices on regulation of credit bureaus and the development of credit information sharing in the country. As a key outcome, participants’ suggestions will be consolidated and recommended for inclusion in the draft law.

“There is a unique situation in the Kyrgyz Republic—we have an operating credit bureau whose development is slowed by the absence of guiding legislation,” said Alisher Sabirov, Member of Parliament and co-author of the draft law. “The new law on credit bureaus will help fill the gap and create a more favorable legal environment for credit information sharing development in the Kyrgyz Republic.”

Anastassiya Marina, IFC Project Manager, said, “A credit bureau, an integral component of the financial infrastructure, is critical to expanding access to credit for people and small businesses. IFC is initiating this discussion to help align legislation with international standards and facilitate adoption of this law.”

This initiative is part of the Azerbaijan-Central Asia Financial Markets Infrastructure Advisory Services Project, funded by Government of Switzerland. The project aims to strengthen the system of sharing credit information and introducing formal education in risk management and certification for financial institution employees. It also helps increase public awareness of the benefits of credit information sharing systems along with risk management.

IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by developing financial infrastructure to expand access to finance for people and small business.

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 $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.

About Switzerland’s support
Swiss funding for the project is provided by the State Secretariat for Economic Affairs, the Swiss Confederation’s competence center for all core issues related to economic policy. It aims to create basic regulatory and economic policy conditions to enable business to flourish and benefit all. SECO also represents Switzerland in the large multilateral trade organizations and international negotiations, and is involved in efforts to reduce poverty and help developing countries with transition economies 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.