President of Kyrgyzstan Sadyr Japarov explained in an interview with Kabar news agency why he signed the Decree «On creation of the National Investment Fund», what its main goal is and whether there is a risk that state-owned enterprises will be sold for nothing.
According to him, the main goal of creating the fund is to improve the efficiency of state-owned enterprises, increase their income, ensure a significant increase in their value, unlock their full potential, as well as attract investment from internal and external sources, using international standards and practices.
«State-owned companies today make up a significant part of the sovereign capital of Kyrgyzstan. At the same time, their true potential has not yet been discovered and appreciated. This is due to the fact that the market value of state-owned companies is not fully determined,» he said.
We will transfer from 20 to 100 percent of the government’s share of some state-owned enterprises to this new fund. It will be 100 percent owned by the state, that is, the state will not lose control and management of these companies.
Sadyr Japarov
The head of state added that similar funds have been created in many countries around the world, which are working effectively today. For example, in Kazakhstan this is the Sovereign Wealth Fund Samruk-Kazyna, in Singapore — the Temasek Fund, in Saudi Arabia — the Public Investment Fund, in the United Arab Emirates — Abu Dhabi Developmental Holding Company, in Norway — the Norwegian Investment Fund, and many other state wealth funds are proof of this.
«We use the experience of these countries by creating a fund that issues shares on the most prestigious exchanges in the world, comparing them with leading international companies. We strive to present Kyrgyzstan to the world community and international investors as a promising investment destination,» the president concluded.
