ADB approves $70mln loan to back fiscal and governance reforms in Kyrgyzstan
The ADB has provided a 70 million US dollars concessional loan to support phase 2 of Kyrgyzstan's Sustainable Fiscal Management and Governance Improvement Program, a series of policy reforms aimed at strengthening public resource management, transparency, and economic resilience, Qazinform News Agency cites the press service of the Bank.
This program is an important step toward building a stronger and more resilient economy, said ADB Country Director for the Kyrgyz Republic Zheng Wu. "By improving the governance of state-owned enterprises and modernizing tax administration, the government is creating a more transparent and predictable environment for businesses, investors, and citizens."
While the Kyrgyz Republic has recorded robust economic growth in recent years, it remains exposed to external shocks, fiscal pressures, and climate-related risks. To address these challenges, the financing will broaden reforms under the program’s first phase, approved in 2024, by implementing core legal, regulatory, and institutional frameworks for public financial management, state-owned enterprise governance, tax system modernization, and anti-corruption.
The program’s focus is on public financial management through a unified system for program-based budgeting, medium-term expenditure planning, and performance monitoring. It will also modernize tax administration by utilizing digital tools for audits, tracking and preventing illicit financial flow, and simplifying processes for small businesses, particularly those led by women.
Earlier, Qazinform reported the ADB issues disaster relief bonds for Kyrgyzstan and Tajikistan.
