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Parliament deputy offers options for attraction of investments to Kyrgyzstan

Outflow of direct investments has increased in Kyrgyzstan. There is a decrease in transport, exploration, manufacturing, financial intermediation and insurance. Deputy of the Parliament of Kyrgyzstan Abdyvakhap Nurbaev proposed amending the legislation regulating investment activities.

In his opinion, businessmen take money from enterprises of Batken, Issyk-Kul, Talas and Chui regions, as well as Osh.

«In a study, the National Institute for Strategic Studies (NISS) notes a deterioration in the business situation compared to the previous three years (2015-2017). Regarding forecasts, the majority of entrepreneurs believe that the situation will not change,» Abdyvakhap Nurbaev states.

He added that, according to the analysis, the factors limiting the activities of companies are a high cost of finance and a large number of requirements for obtaining loans, administrative barriers and a lack of qualified workforce.

These obstacles do not allow domestic entrepreneurs to enter the foreign market with competitive products.

Abdyvahap Nurbaev

Therefore, the barriers need to be removed: it is necessary to simplify the procedure for obtaining loans and reduce interest, the deputy believes. The main emphasis should be placed on the development of entrepreneurship in the regions and not «buy-sell» operations, but rather encourage production enterprises. The most promising are export-oriented organizations in the field of innovation, information and communication technologies.

«It is worth separately mention the enterprises in tourism, construction, and service sector. They all need direct investment. A weak level of legal protection of investor should be noted there. It is necessary to carefully study the issue. No one will invest money if he can’t receive dividends,» Abdyvakhap Nurbaev stressed.

All these mechanisms stimulate the growth of foreign direct investment inflow one year after their introduction. A 60 percent increase is expected.

With a minimum calculation, 152,890 people can be employed if a wider flow of investment becomes available to entrepreneurs. At the same time, some of them (for example, in the textile industry or food production), are currently ready to open enterprises with at least 3,000 employees under a favorable investment regime.