Kyrgyzstan Development Fund commits to openness and transparency

Kyrgyzstan Development Fund management is determined to ensure transparency of its activity. For this purpose, there has been a proposal to conduct live broadcasts of discussions of key decisions and have an external audit of fund activity.

Tair Shamshiyev

2009-12-05

KYRGYZSTAN — On November 24, Kyrgyzstan Development Fund Chairman of the Board Maxim Bakiyev, son of the nation’s president, proposed a live broadcast of discussions regarding the selection of partners for investment projects. The Fund's management concurred saying the procedure was a way to ensure social supervision of the fund's activity and decrease accusations that its work is ineffective.

In addition to this, Fund Executive Director Kubanychbek Djusupov said the board is also planning to conduct a tender for an external audit, another manifestation of its commitment to openness, transparency and social supervision of its activity.

Currently, the Fund's resources consist entirely of Russian state credits. To use them effectively, it created a $US100 million investment portfolio of Eurobonds of the Russian corporations Gazprom, Alros and VTB Bank. The Fund also plans to invest $30 million in local banks and obtain control of $20 million that Kyrgyzstan will receive from the U.S. as part of the Kyrgyz-American Fund for Economic Development.

Created in 2007, the Kyrgyzstan Development Fund is a specialized financial and credit institution formed as a one hundred percent government-owned closed joint stock company. The Fund's tasks include increasing the effectiveness of management of the country's financial assets. It evaluates the country's top priority and strategically important projects, administers them, assesses the financial condition of banks participating in the Fund's projects and also borrows and pays off loans from various sources. The Fund is authorized to make its own credit policy, and also raise loan funds from national and local budgets. In order to achieve national development goals, the Kyrgyzstan Fund received practically unlimited freedom over its own operations.

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