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Agency for Banks Reorganization of Kyrgyzstan may be liquidated

Four corruption zones were detected in the activities of the Agency of the Kyrgyz Republic for Bank Reorganization and Debt Restructuring (DEBRA). The results of the analysis of corruption risks were presented at a meeting of the working group of the Security Council. The secretariat of the Security Council reported.

According to it, the main factors that increase corruption risks in the activities of DEBRA are the absence of regulation of the ongoing processes in the liquidation of banks, payment of claims to creditors, nontransparent system of accounting records and financial accounting.

«These factors as a whole form an unsatisfactory level of transparency in the work of the agency, which makes it difficult to monitor its activities and has a negative effect on the agency’s work. In most of the liquidated banks, the bankruptcy procedure had lasted more than 15 years, the facts of inefficient use of assets of liquidated banks were noted,» the report said.

As noted, the revealed corruption risks and poor efficiency of the agency require a radical change in the format of ongoing processes, including the reorganization of the agency.

Members of the working group recommended the government to conduct an analysis of the effectiveness of the agency’s activities and, based on the results, make proposals on the possibility of delegating authority to other state bodies of the Kyrgyz Republic.

The agency’s management was instructed, together with the experts of the working group, to work out a draft detailed plan for dismantling corruption risks within two weeks, the Security Council reported.