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IFC and the Government of Switzerland Helped Develop the Kyrgyz Leasing Market


In Bishkek:
Kymbat Ybyshova

Phone: (+996312) 626160
E-mail:
KYbyshova@ifc.org

In Moscow:

Ilya Sverdlov

Phone (+7916) 907 4059

E-mail:
ISverdlov@ifc.org


Bishkek, Kyrgyztan, April 16, 2009–IFC, a member of the World Bank Group, today released the results of a three-year program to help Kyrgyzstan develop its leasing market. With support from the Swiss government, IFC assisted local participating financial institutions in closing $2.8 million leasing transactions and enabled them to attract $5 million in additional investment.  With the IFC’s help the Kyrgyz leasing market has grown by $1.5 million from 2005 to 2008.  

IFC also helped the Kyrgyz government to amend the country’s tax code, removing a major administrative obstacle to the leasing sector’s development in 2008. As a result, the local leasing market tripled in that year. IFC has been supporting leasing development in Kyrgyz Republic with funding from the.


“Leasing is one of the means to increase access to finance and create employment in the country.  The Swiss Government is satisfied that IFC played a significant role in supporting these endeavors by the Kyrgyz government and private sector,” – said Andrea Studer, Deputy Country Director, Swiss Cooperation Office in the Kyrgyz Republic.
 

To develop institutional capacity of leasing institutions, IFC trained over 230 leasing specialists in leasing basics, credit analysis in leasing, microleasing, risk management, human resources management, financial analysis and monitoring of leases.

On April 30, IFC completes its leasing development activities in Kyrgyz Republic. The Union of Kyrgyz Banks will take over the lead from IFC in lobbying for leasing market interests, conducting leasing training and publishing results of the annual market survey upon the project’s completion. The Union will also manage a web-site page on leasing issues:
www.ub.in.kg/leasing.

“Through legislative initiatives and capacity building of the local financial institutions, IFC has created a favorable environment for further leasing growth in the country. We are the Union of Kyrgyz Banks is committed to further support the leasing market development in the Kyrgyz Republic,” – said Anvar Abdraev, the President of the Union of Kyrgyz Banks.


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 Switzerland’s support

The Swiss Government aim is to assist and financially support partner countries in creating basic regulatory and economic policy conditions to enable business to flourish and benefit all. Switzerland is represented 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.