President Sadyr Japarov signed a decree «On the establishment of the National Investment Fund of the Kyrgyz Republic». The press service of the head of state reported.
In order to improve the efficiency of management of business entities with state participation, to ensure sustainable growth in the value of business entities with state participation and attract investment by entering the local and international capital market, in accordance with Article 26 of the Constitutional Law «On the Cabinet of Ministers of the Kyrgyz Republic», guided by Articles 66, 71 of the Constitution of the Kyrgyz Republic, it is decreed:
1. The Cabinet of Ministers shall:
- Establish National Investment Fund of the Kyrgyz Republic OJSC (hereinafter referred to as the Fund);
- Develop draft normative legal acts defining the legal status, goals and objectives, features and procedure of the Fund’s activities, as well as other normative legal acts necessary for the implementation of this decree;
- On the basis of appropriate assessment and analysis to prepare a list of business entities with state participation to be transferred to the Fund.
2. Determine the following tasks as the main tasks of the Fund:
- To ensure efficiency and effectiveness of financial and economic activities of the Fund and its portfolio companies;
- Increasing and ensuring sustainable growth of the value of the Fund and its portfolio companies, as well as attracting investments by entering the international and local capital market;
- Introduction of the best practices of corporate governance into the Fund and its portfolio companies;
- Development of certain sectors of the economy through the implementation of government programs and investment projects.
3. Establish the following principles of the Fund’s activities:
- Ensuring an effective system of selection and nomination of personnel to the management bodies of the Fund and its portfolio companies;
- Availability of independent managers in the boards of directors of the fund and its portfolio companies;
- Introduction of a system of remuneration and responsibility of managers in the Fund, focused on specific financial or industry targets (commercial and non-commercial indicators);
- Accountability, regular audit, and disclosure of information on the results of the Fund’s financial and economic activities.
Control over the execution of this decree shall be entrusted to the Department of Control over the Execution of Decisions of the President and Cabinet of Ministers of the Presidential Executive Office.
