AKIPRESS.COM - The Asian Development Bank (ADB) has approved a $50 million project to help the Kyrgyz Republic diversify its economy to improve growth and make the country more resilient to external shocks.
The project, which consists of a $25 million grant and a $25 million concessional loan, continues ADB’s Promoting Economic Diversification Program, which supports the government in implementing structural reforms to accelerate economic diversification efforts amid significant macroeconomic challenges such as the COVID-19 pandemic.
“Accelerating the Kyrgyz Republic’s economic diversification reforms aimed at moving away from overreliance on gold production and remittances will help the economy to become more resilient to external shocks and improve the country’s medium- to long-term growth trajectory,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “ADB is committed to supporting reforms that will improve the investment climate in the country and create jobs and new sources of livelihood.”
The project supports reforms to promote trade and investment competitiveness and develop the nonmineral sector, and support small and medium-sized enterprises (SMEs). The supported reforms will also develop public–private partnerships to improve infrastructure, enhance industry-based skills, and improve fiscal management and social protection mechanisms.
“This program will help create an enabling environment for expanding the product and export base of the Kyrgyz Republic’s economy, ensuring sustainable and more equitable growth,” said ADB Public Management Specialist Bobir Gafurov. “The reforms will improve economic opportunities for many through boosting trade, access to finance, and facilitating the growth of export-oriented businesses. It also supports efforts to strengthen fiscal management and social protection system.”