A new version of the law on investments has been developed in Kyrgyzstan. The document was submitted for public discussion by the National Investment Agency.
The agency notes that the goal of the bill is to ensure annual real economic growth of an average of 5 percent, achieving GDP per capita of at least $1,500, reducing unemployment to 5 percent and ensuring an annual influx of foreign direct investment of at least 13 percent to GDP.
«An analysis of the investment legislation of Kyrgyzstan showed that many provisions lag behind international best practices for attracting direct investment and require conceptual, comprehensive and systemic changes. Therefore, a draft of a new version of the investment law has been developed,» the background statement to the document says.
It is proposed to regulate the legal relations of investors when making direct investments, establish the principles of the state’s investment policy, consolidate the rights (guarantees) of investors, and introduce mechanisms to protect the interests of investors.
It is also planned to revise the provisions on ensuring the rights (guarantees) of investors.
In particular, freedom to invest and manage own business is provided. They give investors freedom when creating, managing and terminating the activities of a company, to invest throughout the republic in all types of activities not prohibited by law.
For equal conditions for foreign and national investors, it is proposed to provide for the right of a foreign investor to receive national treatment. The rights of the investor in the event of expropriation of investments will be spelled out. The draft law proposes to clearly indicate that a decision on expropriation can be made by the Parliament with mandatory compensation for the market value of the expropriated investment. A clear understanding is given of what is recognized as expropriation, including indirect expropriation. At the same time, the draft provides for a method for calculating compensation to the investor, which should include the market value of the property, the damage caused, as well as lost profits as of the date the decision on expropriation was made.
It is proposed to secure the investor’s rights to the free use of income, conversion and transfer of funds abroad.
At the same time, the law provides for a number of restrictions related to bankruptcy, protection of creditors’ rights, criminal prosecution, as well as compliance with fiscal and economic standards. It is proposed to give investors the right to free access to official information, including regulatory legal acts of Kyrgyzstan and court decisions affecting the interests of investors.
There is a mechanism for resolving complaints and investment disputes among investors. The procedure for approving investment proposals and projects initiated by state bodies and local governments is spelled out.
The Cabinet of Ministers is asked to bring its regulatory legal acts into compliance within six months, and the date for entry into force of the law is set at March 1, 2024.
