Portfolio: IFC’s committed investments grew steadily to $65 million, since 1996. The committed IFC portfolio as of January 1, 2008 stands at $17 million, with $13 million disbursed. The largest investment in the existing portfolio was the Kumtor Gold Mine, with additional investments in a packaging plant (Altyn-Ajydar) and three financial sector projects (Demirbank, KICB and FINCA). IFC has also approved an investment in a regional small equity fund (CASEF) and in the Central Asian Microlending Facility. In 2005-2006 IFC actively continued its investment and technical assistance program in Kyrgyzstan. The projects have been approved and investments have been done to the Kyrgyz Investment Credit Bank on providing credit line for SME financing for $2.4 mln dollars, to Bai-Tushum Microfinance Agency for financing loan and equity investments for $2.2 mln, provided credit lines under the framework of MSEF project to Kazkommertsbank for $2.0 mln, AKB Kyrgyzstan for $1.5 mln and Ineximbank for $1.5 mln. The second loan was provided to Altyn-Ajydar enterprise for $1.4 million dollars for expansion and paper production. In 2005 two Regional technical assistance projects on improving legislation and legal framework for housing finance and leasing have been launched. Also it is planned to start another regional project in 2007 on improving corporate governance at local enterprises in Kyrgyzstan. IFC Technical Assistance and Business Promotion Microfinance: IFC trust funds provided an initial $50,000 grant to assist FINCA develop a plan for conversion of its Kyrgyz NGO microfinance operations into a licensed microfinance institution and a further $50,000 to assist in drafting a law and regulations to permit the development of regulated microfinance banks. The Microfinance Law developed by FINCA and IFC with assistance by IFC’s Private Enterprise Partnership was approved by Legislative Assembly of the Parliament on June 11, 2002, and was introduced into law by the President’s Decree in July 2002. Recently, the Private Enterprise Partnership was awarded a USAID grant to develop a training program for National Bank staff on the supervision and regulation of microfinance activities. Leasing: IFC provided technical assistance through external consultants, funded by Japanese trust funds, in order to determine opportunities for investments in this sector and to advise on the regulatory and legislative framework for leasing. The Private Enterprise Partnership, with funding by Swiss SECO, provided technical assistance and worked with the Kyrgyz Government, NGOs, local financial institutions and entrepreneurs to build the leasing industry in the Kyrgyz Republic. The technical assistance included support to the government to develop the legal framework for leasing including a law on leasing and an appropriate tax regime for leasing. Additional activities included a large public awareness campaign on leasing through the local media and training and capacity building for local existing and potential lessors. In July 2002, the President of Kyrgyz Republic enacted a law on leasing, and in March 2003, the Parliament adopted tax amendments, both which have created the necessary legal foundation for leasing in Kyrgyz Republic. In 2005, IFC has launched the second stage of technical assistance leasing project which will provide TA for 3 years. Out of the Facility finances will be provided to local commercial banks and financial organizations, companies in the form of credit lines for financing leasing transactions. Housing Finance: In 2005 IFC launched a Central Asian Regional technical assistance project to improve legal, regulatory and tax framework for housing finance and for creating favorable conditions for housing finance development. In mid 2006 IFC PEP project team has completed regional studies on legal framework and existing obstacles for successful development of housing finance in Central Asia including Kyrgyz Republic. The presentation of the results of studies and subsequent recommendations has been done to the Government in July 2006. IFC PEP has been discussing with the Government the next steps on housing finance development on results of the studies. In 2007 the IFC PEP project team has started the second stage of the project aimed at providing assistance in improving enabling environment, strengthening institutional capacity of financial organizations involved in housing finance, assisting the Government of KR in improving the housing policy including development of Housing Code, laws and legislation related to housing finance. Agribusiness Sector Study: IFC sent an agribusiness specialist to assess the agribusiness sector in the country and to identify promising investment projects for IFC. The study was completed in November 1998, and one investment project (Kyrgyz MIS) was approved as a result of this assignment. Dairy Sector Study: IFC contracted a dairy consultant to assess a specific dairy project and to prepare report on the sector. Several foreign investors subsequently invested in the sector. Kant Cement – Operational/Environmental Audit: IFC obtained trust fund money from the Swiss Government to carry out an operational and environmental audit for Kant Cement which was in the process of being privatized. The audit took place in June 1999, and the company was later privatized. SME Project Development Assignment: IFC sent a team of external consultants to screen several SMEs identified as promising by the local IFC office. Altyn-Ajydar Ltd. was one of the projects identified and selected to be an IFC investment. The same team of consultants assisted the company develop a business plan for Altyn-Ajydar, used to evaluate the investment. Other companies supported through this technical assistance were subsequently funded by local banks. SME Country Mapping Exercise: IFC sent an SME expert in May 1999 to study the SME sector in the country, including the constraints and impediments these businesses face. The consultant made recommendations on a variety of initiatives on advisory services and technical assistance to help develop the SMEs in the country. In 2001, the IFC SME Department followed up on this assignment and produced an updated country map. Kyrgyz Tourism: IFC contracted consultants to develop a regional strategy for the development of this sector. The study included recommendations for improving educational services offered for the tourism sector and also a redesign of the current institutional framework for tourism promotion. Several workshops were held with the most active tourism companies and operators, government structures and universities to discuss tourism development needs and the recommendations developed by the IFC consultants. The IFC study was given to the Kyrgyz Government in March 2003, and the government has expressed the interest in the practical implementation of this project, with assistance from other IFIs and donors. The Swiss government has decided to provide financial and technical assistance for the practical implementation of the second stage of this project in 2005. The IFC has also provided technical support to local tourist entrepreneurs to develop business plans and assisted them access financing through local financial intermediaries such as KICB. FIAS: FIAS has received a request to provide implementation assistance to the Government for previous FIAS recommendations. It is envisioned that FIAS will provide periodic, ad-hoc advisory assistance to the President’s Advisor on Foreign Investment, including review of on-going reforms, facilitating dialog with the foreign investment community in Kyrgyz, and rapid-response to current policy questions. FIAS completed a review on FDI Law in June 2006 and held a joint meeting with representatives of the private sector, government officials and other concerned parties. There is request to expand FIAS’s work into administrative barriers to investment and regulatory reform.
IT/Telecom: IFC has provided technical assistance to review market opportunities, assess potential institutional and human resources, and barriers which might inhibit the development of the Information, Communications and Technology sector (ICT). In 2002, the IFC conducted an ICT sector review, at the request of the Government to define a possible future strategy for the ICT sector and to identify investment opportunities. Results of the ICT sector studies were presented to the Government in October 2002.
Bio Diversity – Snow Leopard Program: In 2005, with IFC support “Bashat” (a NGO) launched an advanced biodiversity program designed to protect the endangered snow leopard and other regional species in the Sary-Chat Ertash Zapovednik - a vast and remote nature reserve neighboring Kumtor mine.
Future Technical Assistance Projects Kyrgyz Republic Statement of IFC’s Portfolio
as of 05/01/2007 (in million USD)
 IFC Regional projects with Benefit to the Kyrgyz Republic
(in million USD)
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