Kyrgyzstan proposes to reduce amount of investment agreement from $50 to $10 mln

Bishkek, Aug.28, 2019. /Kabar/. Kyrgyzstan’s Ministry of Economy submits for public discussion a draft law "On Amendments and Additions to Some Legislative Acts on Investment Support".
According to the document, the purpose of the bill is to introduce amendments to some legislative acts, which are aimed at eliminating existing barriers to investment activity and continuing to stimulate it.
To date, according to the current legislation, land transformation takes a long time (up to 2-4 years), as land is transferred from one category to another by a government decree. As a result, potential investors experience difficulties in land registration, and many of them refuse to implement an investment project.
Taking into account the significant role that attracted funds play in the economy, the decline in investment activity carries certain risks for macroeconomic stability. In order to maintain a sufficiently stable economic environment, the elimination of restrictive measures and building mutually beneficial relations with potential investors is a priority and an important prerequisite.
In view of this, the adoption of this draft law is expected to help to ensure positive investment dynamics and will contribute to the intensification of investments.
In addition, the bill proposes to reduce the amount of the investment agreement between the government and investor from $ 50 to 10 million. This change, first of all, is aimed at creating opportunities for the expansion of partners, which are the basis for attracting investment resources.