International conference "The transition journey and the road ahead" was held in Bishkek 

On May 20, 2013, international conference "The transition journey and the road ahead" was held in Bishkek based on the experience of the Caucasus and Central Asia countries (CCA).  

The International Monetary Fund (IMF), the European Bank for Reconstruction and Development (EBRD), the Swiss State Secretariat for Economic Affairs (SECO) and the National Bank of the Kyrgyz Republic (NBKR) hosted a high-level conference.  

The conference was attended by high-ranking representatives of the IMF, the EBRD, SECO, the World Bank, the CIS and the European Union, as well as the representatives from Moldova, the Netherlands, Poland, the USA, Turkey, Estonia, Japan, leading scientists, heads and officials of international organizations, the representatives of state administration bodies of our country, scientific and educational institutions and financial sector.  

The Kyrgyz Republic was represented by First Vice Prime Minister J. Otorbaev, Chairman of the National Bank of the Kyrgyz Republic Z. Asankozhoeva, Minister of Economy of the Kyrgyz Republic T. Sariev and other public officials.  

President Almazbek Atambaev forwarded welcoming address to the participants of the conference. Prime Minister Jantoro Satybaldiev addressed the conference with opening speech. The IMF Deputy Managing Director Min Zhu spoke at the conference.  

The major report "Costs and risks of incomplete transition. What makes a successful economy?" was presented by Gerard Roland, Professor of Economics, University of California, Berkeley.  

The conference focused on exchange of opinions about experience and lessons of twenty-year post-Soviet transition in the Caucasus and Central Asia countries (CCA), priorities and objectives in the sphere of politics with respect of future prospects. The IMF highlighted the issues of stability, growth, variability and diversification, the EBRD considered the issues of private sector involvement. The World Bank suggested for discussion the issues of growth, human capital assets and investments in the infrastructure.  

The following sessions will be held within the framework of the Conference: "Transition journey", "Future tasks and priorities", "Measure of macroeconomic policy contributing to growth" and "Structural reforms contributing to growth".  


The Chairman of the National Bank of the Kyrgyz Republic held a meeting with representatives of the US Department of the Treasury 


The meeting was conducted within the framework of the conference "The transition journey and the road ahead" held in Bishkek. Development trends and current issues of financial sector of the Kyrgyz Republic were highlighted during the discussion. Particularly, the discussion focused on high interest rates on credit resources, improvement of financial literacy of the population, amendments introduced into the laws on anti-money laundering and counter terrorist financing.  

The parties decided to continue further strengthening of cooperation in this direction taking into account the importance of the issues on anti-money laundering and counter terrorist financing. The representatives of the US authorized bodies expressed their readiness to provide technical assistance to our country in implementation of the program on improvement of financial literacy and carrying out training sessions for the officials of the supervisory unit.  


The Chairman of the National Bank of the Kyrgyz Republic held a meeting with the Swiss State Secretary for Economic Affairs  


On May 20, the Chairman of the National Bank of the Kyrgyz Republic Zina Asankozhoeva held a meeting with the Swiss State Secretary and Head of the Swiss State Secretariat for Economic Affairs Marie-Gabrielle Ineichen-Fleisch, the Head of Department for Macroeconomic Support Monica Rubiolo and the Ambassador of Switzerland in the Kyrgyz Republic Laurent Guye.  

In greeting speech addressed to Ms. M.G. Ineichen-Fleisch the NBKR Governor expressed gratitude for assistance rendered by Switzerland to the Kyrgyz Republic. Ms. Z. Asankozhoeva addressed guests and said, "Upon gaining independence our republic received invaluable assistance on your part. The National Bank of Switzerland renders us assistance on the issues related to cash funds, payment systems development, risk management, monetary policy and financial programming, and organizes training workshops and skills building sessions for the NBKR employees."  

Talking about cooperation of the parties in the sphere of joint projects implementation, the NBKR Governor highlighted SECO assistance in financing two research projects "Near-border trade and re-export of goods not covered by official statistics and "Mechanism of price formation for consumer goods in Kyrgyzstan." "Anticipating Kyrgyzstans entry the Customs Union, the first project is the most topical," emphasized Ms. Z. Asankozhoeva.  

"SECO granted 1 million US dollars to improve supervision over financial sector of the country. The NBKR is ready to enter into trilateral Memorandum among the World Bank, SECO and the NBKR on use of the grant funds. We hope that such measures will accelerate the implementation of the project launching and assist in objectives fulfillment on improvement of supervision over financial sector," noted Ms. Z. Asankozhoeva.  

Meanwhile, Ms. M.G. Ineichen-Fleisch noted that Switzerland had been rendering assistance to Central Asia countries including Kyrgyzstan and was ready to stand to such tradition in future. "The National Bank of the Kyrgyz Republic is one of the major partners. We are ready to continue cooperation on implementation of the aforementioned projects," she said.  

In conclusion parties expressed hope for perspective and fruitful cooperation between Kyrgyzstan and Switzerland.  


The IMF, SECO, the EBRD and the NBKR discussed the results of twenty-year transition yourney and future prospects of the Causasus and Central Asia countries development  

A high-level conference hosted by the International Monetary Fund (IMF), the Swiss State Secretariat for Economic Affairs (SECO), the European Bank for Reconstruction and Development (EBRD), and the National Bank of the Kyrgyz Republic (NBKR) in Bishkek during May 19-20, assessed the experience and lessons of the transition of the past two decades, as well as key challenges and priorities going forward. The conference focused on the macroeconomic and structural reform policies needed to foster high, sustainable, diversified and inclusive growth in the region. 

Speakers and participants noted the significant achievements of the past twenty years, including high rates of economic growth, a sharp reduction of inflation, and establishing essential institutions for economic policy development and management. At the same time they highlighted remaining challenges such as heavy reliance upon natural resources and money transfers, volatile inflation, high level of dollarization, substantial social and infrastructure needs, and still insufficient transparency and accountability. Countries of the Caucasus and Central Asia (CCA) should aim to become dynamically developing and diversified economies with establishing markets over the next decade. Conference participants highlighted the importance of reforms targeted at breakthrough in the business environmentovercoming vested interestsand greater international integration. At the regional level, this will require closer cooperation in trade, energy and water resources use. 

Senior officials of CCA governments and central banks, international institutions, and development partners from Europe, Asia, and the U.S participated in the conference. The possibility to share experience was also given to the representatives of scientific circles, policy makers from non-CCA countries with transition economies, and former senior staff from international financial organizations. 

In closing the conference, the NBKR Governor Zina Asankozhoeva stated that "the authorities of the Kyrgyz Republic are very pleased to have hosted so many regional partners and colleagues. We have had excellent discussions of the ways to strengthen further our policy frameworks and institutions to deliver strong growth, inflation, and social outcomes going forward."  


The IMF Deputy Managing Director Min Zhu said, "the IMF has been pleased to support the transition of the past two decades. The CCA countries now have the potential to join the next generation of establishing market countries, but to do so, they will need to build on their achievements." He encouraged the authorities "to be bold in creating the conditions for sustained, diversified, private-sector led growth." 


Among the specific policy priorities going forward, conference participants identified clearer fiscal anchors (such as debt or deficit targets), stronger medium-term budget frameworks, further steps to reduce inflation, greater financial sector competition and structural reforms aimed at improving the business environment. 


Swiss State Secretary for Economic Affairs, Marie-Gabrielle Ineichen-Fleisch, told the conference that "accompanying the transition journey of our CCA partner countries is a priority for Switzerland. The IMF and the EBRD are important partners for providing technical assistance. This support is geared towards enhancing macroeconomic and financial stability, strengthening economic institutions and addressing structural challenges that are conducive for private sector development and economic diversification." 


EBRD Chief Economist Erik Berglof noted that, "to sustain the growth momentum, it will be important for CCA countries to continue to strengthen market-supporting institutions across all sectors - in the corporate sector, infrastructure, energy and finance - and to make further advances in the area of competition policy and its consistent implementation. These actions, together with improved cross-border infrastructure and greater regional economic cooperation will help promote and diversify output and exports." 


The IMF recommends the Caucasus and Central Asia countries to strengthen supervision  

The Caucasus and Central Asia countries should strengthen monitoring of financial institutions and independence of central banks alongside with development of the monetary policy instruments. Thus, Deputy Director of the IMFs Middle East and Central Asia Department Yuha Kahkonen defined the priorities in the economic policy of the aforementioned countries at the international conference of the Caucasus and Central Asia (CCA) countries "The transition journey and the road ahead," hosted by the National Bank of the Kyrgyz Republic, the IMF, the EBRD and SECO in Bishkek.  

He noted that the economies of these countries were still characterized by high level of dollarization. "Financial sectors of these countries are rather developed. Both inflation and interest rates decreased in the region. However, the inflation rates are not stable; the real interest rates are too high. Currently, the region faces obstacles for development of business agencies, namely macroeconomic conditions, lack of financial infrastructure and poor management in the financial sector. It is necessary to take measures for decreasing inflation level, monetary policy should be directed for smoothing inflation instability," said Yu. Kahkonen.  

Taking about economic policy, the representative of the International Monetary Fund alongside with strengthening central bank defined a number of other priorities for the Caucasus and Central Asia countries. The focus is placed on the development of transmission mechanism on monetary policy, updating forecasting data and models, improvement of information provision to the public, clearing the role of exchange rate and flexibility provision.  

Meanwhile, expert recommended reducing the role of the state, strengthening financial infrastructure and supervision in order to develop financial sector. "The countries of the region possess all advantages for developing national economies," Yu. Kahkonen said.  


The Caucasus and Central Asia countries should strive for integration  

Under the current conditions the Caucasus and Central Asia countries should strive for integration. This was emphasized by Gйrard Roland, Professor of Economics, University of California, Berkeley at the international conference "The transition journey and the road ahead" hosted on May 20 by the National Bank of the Kyrgyz Republic, the International Monetary Fund, the European Bank for Reconstruction and Development and the Swiss State Secretariat for Economic Affairs (SECO).  

When he started his speech, he characterized the Caucasus and Central Asia countries emphasizing that these states share common Soviet inheritance both good and bad and instable situation in one country influence the processes in the other country. However, despite such disadvantages as lack of outlet to the sea, resources shortage, etc., the CCA countries possess significant potential for development of their economies. The Caucasus and Central Asia area is likely to become the center of successful growth. At this stage - during transition period - these countries should learn lessons, study the experience of other countries and shift to the next stage.  

He noted that the ways of countries development could differ, which is applicable for one country, is completely not applicable for other countries. In this regard the positive aspect for the Caucasus and Central Asia countries is the possibility to choose development model, i.e. use the experience of Europe, Turkey and other countries. While other countries such as Russia - which vibrated between the east and west - did not have such an opportunity to choose, there was no one to imitate and to teach.  

According to G. Roland, support of the state administration and political will are the main components in execution of reforms. "It is very difficult to do something, change conditions when you feel strong resistance on the part of state administration. In the 90-th, reforms were initiated in such countries as Turkmenistan and Uzbekistan and were not completed. If compare current Kyrgyzstan, Georgia and Armenia with the ones of those times, one can say that these countries were characterized by active reforms. The last three countries are the leaders in the rating of democracy development", he said.  

G. Roland recommended the Caucasus and Central Asia countries to learn from mistakes of each other, share experience, to extract only positive sides. Talking about development perspectives he noted that it was impossible to achieve economy diversification without changing management structure in the state, efficient use of natural resources, internal and external stability. "CCA countries should jointly implement infrastructure projects, construct main railway lines, stretch gas pipelines, etc. Under current conditions such thing are possible for the regions with promising perspectives. As the countries of Europe managed to overcome centuries-lasting opposition, get together and organize united organization - the European Union," he highlighted in his speech.  


The Caucasus and Central Asia countries were recommended to improve energy resources management  

On taking the floor at the International Conference "The transition journey and the road ahead" based on the experience of the Caucasus and Central Asia countries, hosted by the NBKR, the IMF, the EBRD and SECO in Bishkek, the Deputy Director of the IMFs Middle East and Central Asia Department Yuha Kahkonen recommended the Caucasus and Central Asia countries to improve management of energy resources.  

He thinks that the countries of the region should be characterized by rapid, not very changeable more inclusive and diversified growth in order to achieve dynamically developing state with the market in progress. "However, obstacles and risks are likely to occur on this way - external, internal, global. The external risks comprise vulnerability of the countries before shocks, lack of integration with regional and world markets, the internal risks comprise vested interests of pressure groups, poor institutes, including accountability and potential political ambiguity. Global obstacles in growth of the region countries may be characterized by uncertainty in respect of the world growth and geopolitical movements," he noted and added that economy of the region from 1996 till 2011 grew rapidly contributing to poverty reduction. "Meanwhile, high rates of growth hardly resulted in inequality reduction, growth in the region was characterized by considerable changeability and instability, - he says - alongside with it, economic growth in the region countries was not characterized by diversity and regional integration did not contribute to it."  

Afterwards, Yu. Kahkonen said what was essential in order to avoid and smooth consequences of aforementioned processes. Besides improvement of energy resources management he advised to strengthen fundamentals of macroeconomic policy and financial sectors, raise flexibility of exchange rate, improve management of energy sector, support regional cooperation for providing energy and water supply, carry out structural reforms for business climate improvement.  

Yu. Kahkonen appealed in conclusion to the representatives of the Caucasus and Central Asia to strive for development, and become the countries with established market after a while. "Set high goals, express courage and dont forget about risks," he said.  



Certificates/licenses of the following Non-bank Financial Institutions to have been revoked: 


The accounting registration certificate № 415 dd. November 28, 2011 of LLC "MCC" MigCredit" for providing microloans to individuals and legal entities has been revoked starting from May 22, 2013. Self-liquidation. Legal address: 206, Gorkiy street, Tokmok town, Chui oblast  

The license № 535 dd. September 11, 2008 of Credit Union "Kovcheg-Credit" has been revoked starting from May 05, 2013. Self-liquidation. Legal address: 22, Ch. Akaev street, Kemin urban settlement, Kemin rayon, Chui oblast.  



Interbank payments 


Indices of the Interbank Payment Systems (IPS) 


Total IPS 


Clearing system 

Gross system 













Indexes for the period from May 20 to May 24, 2013 (reporting period) 

Absolute value  

15 980 706 691.92 

51 763 

1 475 206 867.99 

48 430 

14 505 499 823.93 

3 333 

Share in IPS payments (%)  








(%) :  







Net positions of Common Interbank Processing Center  







Outgoing to the Central Treasurer's Office  







Incoming from the Central Treasurer's Office 







Outgoing to the Social Fund  







Incoming from the Social Fund  







Average weekly indices for the previous month 

Absolute value  

16 178 456 666.03 

49 572 

1 616 304 722.52 

46 305 

14 562 151 943.52 

3 267 

Indices deviations of the reporting period from the average weekly indices of the previous month 

Absolute Value  

-197 749 974.11 

2 191 

-141 097 854.53 

2 125 

-56 652 119.59 










Indices of the national payment system Elcart 

As of  



Total number of cards in circulation  

(exclusive of re-issued cards)  

199 795 

201 275 

Number of pos-terminals:  

- in banks  

- in trade centers  







Number of automated teller machines