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IFC Invests $2.4 Million in Flour Producer in Kyrgyz Republic


Kyrgyz Republic:                Goulnoura Djouzenova        
Phone:  (996-312) 610-650        

Fax:  (996-312) 610-356        

E-mail:  
gdjuzenova@ifc.org

Washington:
       


Afshin Molavi

Phone:  (202) 458-5674

Fax:  (202) 974-4384

E-mail:  
amolavi@ifc.org


* 30 jobs to be created in new pasta production plant

Washington DC, November 12, 2001—The International Finance Corporation, the private sector arm of the World Bank Group, today announced a US$2.4 million investment in Akun Joint-Stock Company, a Turkish-Kyrgyz joint venture which produces flour on the outskirts of Bishkek, the Kyrgyz Republic. The investment supports the Kyrgyz Republic’s efforts to strengthen the local private sector and attract new foreign direct investment.

The IFC loan will help Akun establish a high-quality pasta production plant, that will facilitate the creation of thirty new jobs.  The investment will enhance Akun’s competitive position by introducing a higher value-added product through the establishment of a state-of the art production facility.  Akun will also benefit from the subsequent transfer of new skills to its employees.

Mr. Khosrow Zamani, Director of IFC’s Southern Europe and Central Asia Department, said that the project will promote investor confidence as the country continues its transition to a market economy.  “The investment is a clear signal of IFC’s continued commitment to develop the country’s private sector despite current economic challenges.  The new financing directly addresses the Kyrgyz industrial sector’s critical need for long-term investments,” Mr. Zamani said.

The project will also result in additional foreign exchange savings, by replacing imported products with high-quality, value-added locally produced pasta.  Akun’s plant will comply with the World Bank Group’s stringent environmental, health, and safety guidelines.

IFC’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives.  IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.  Since its founding in 1956, IFC has committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries.  IFC’s committed portfolio at the end of FY01 was $14.3 billion.

JSC Akun Ltd.