FOR IMMEDIATE RELEASE 

The World Bank
Europe and Central Asia Region

News Release No. 2001/065/ECA	Contact: Mapi Buitano (202) 473-8417
Mbuitano@worldbank.org 
www.worldbank.org/developmentnews

WORLD BANK SUPPORTS REFORMS IN THE KYRGYZ REPUBLIC

WASHINGTON, September 14, 2000The World Bank has approved a US$35 million equivalent credit to assist the reform program of the Government of the Kyrgyz Republic by underpinning fiscal adjustment, improving conditions for private sector development, and providing an impetus for energy sector reform while helping mitigate its social costs among the poorest segments of the population. 

The Consolidation Structural Adjustment Credit (CSAC) focuses on the following areas: 

•	Tax reforms: tax measures will have dual benefits of reducing key distortions in the business environment and strengthening fiscal revenues.
•	Business environment: reforms to reduce regulatory barriers to the entry and operation of businesses.  This will increase the willingness of entrepreneurs to operate in the legal sector. 
•	Reform of utility companies: these reforms will place the utility services on the path to a sustainable future, increase efficiency and improve service quality, and help address the chronic need for repairs and replacement by bringing in private capital from privatization.
•	Social sector: under the CSAC, the Government will augment social protection measures to compensate those most affected by energy tariff increases.

The Consolidation Structural Adjustment Credit is on standard IDA terms, with a maturity of 40 years and a grace period of 10 years.

The Kyrgyz Republic joined the World Bank in September 1992.  Since then, 22 IDA credits to the Kyrgyz Republic, totaling approximately US$570 million have been approved.

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