«A significant decline in the inflow of foreign direct investment has been registered over the past three years in the Kyrgyz Republic,» Cassandra Colbert, Regional Manager at the International Finance Corporation (IFC), said at a conference on protection of investors’ rights.
According to her, if in 2015 the inflow of investments was $ 1.6 billion, then in 2018 it was only $ 850 million. In fact, the volume of investment reduced by almost a half. At the same time, Cassandra Colbert stressed that foreign investment was important for any country.
According to an IFC study, investors often stop their expansion because of difficulties in their work and because their interests are not protected.
«Therefore, it is important not only to attract, but also to keep current investors. There is a need to introduce a mechanism to prevent costly disputes between investors and the state. The current 30 investment protection agreements in the republic are outdated. In addition, dispute resolution procedures are extremely complex. IFC wants to work with the state and sees the government’s efforts to reduce disputes. It is very important to ensure legislative and regulatory compliance in order to solve the problems of investors. The private sector must participate and give a feedback to the Cabinet,» Cassandra Colbert believes.