Kyrgyz Republic: Banking Sector and Capital Market Development Program

Sovereign Project | 34172-013

Summary

The objective of the Program is to promote sound and more balanced development of the financial sector to enable it to effectively mobilize savings and provide alternative sources of funding for productive investment and employment generation. In particular, the Program will (i) facilitate the enforcement of banking legislation and regulation, close banking sector regulatory gaps, and promote competition; (ii) strengthen supervision of securities markets to improve market transparency, and protect investors; and (iii) remove policy distortions that undermine the development of capital markets.

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Project Name Banking Sector and Capital Market Development Program
Project Number 34172-013
Country Kyrgyz Republic
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2224-KGZ: Banking Sector and Capital Market Development Program
Asian Development Fund US$ 15.50 million
TA 4747-KGZ: Supporting Banking Sector and Capital Market Development
Japan Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Finance - Banking systems and nonbank financial institutions - Money and capital markets
Gender Equity and Mainstreaming
Description The objective of the Program is to promote sound and more balanced development of the financial sector to enable it to effectively mobilize savings and provide alternative sources of funding for productive investment and employment generation. In particular, the Program will (i) facilitate the enforcement of banking legislation and regulation, close banking sector regulatory gaps, and promote competition; (ii) strengthen supervision of securities markets to improve market transparency, and protect investors; and (iii) remove policy distortions that undermine the development of capital markets. To achieve these objectives, the Program will seek to (i) increase the transparency and consistency of enforcement policies and procedures in the area of banking, (ii) strengthen risk management regulation and cross-border supervision, (iii) facilitate coordination and cooperation between supervisory bodies, (iv) consolidate the institutional framework for regulation and supervision of NBFIs, (v) strengthen the legal and regulatory basis for securities markets, (vi) strengthen the governance of market intermediaries, (vii) rationalize the tax treatment of government and corporate securities, and (viii) strengthen privatization policies.
Project Rationale and Linkage to Country/Regional Strategy Recognizing the role of the financial sector in promoting growth and poverty reduction, the Asian Development Bank (ADB) has supported the development of the financial sector through a number of loans and TAs. The Financial Intermediation and Resource Mobilization Program helped to (i) establish an overall enabling policy, legal, and regulatory environment for the banking sector; and (ii) resolve a number of problem banks. The Second Phase of the Corporate Governance and Enterprise Reform Program addressed, among other things, (i) corporate governance and disclosure, and (ii) judicial reforms. ADB's Country Strategy and Program for the Kyrgyz Republic for 2004-06 aims to support private sector led growth through financial sector development.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Kyrgyz Republic
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Not required.
Procurement The loan proceeds will be used to finance the foreign exchange cost of items produced and procured in ADB member countries (other than the items specified in the negative list of ineligible items and imports financed by other bilateral and multilateral sources).
Responsible ADB Officer Sona Shrestha
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of FinancePublic Debt Department Room 500
58 Erkindik Boulevard
Bishkek 720040, Kyrgzy Republic
Timetable
Concept Clearance 31 Oct 2003
Fact Finding 02 Aug 2005 to 12 Aug 2005
MRM 17 Oct 2005
Approval 20 Dec 2005
Last Review Mission -
PDS Creation Date 12 Jan 2006
Last PDS Update 16 Jan 2009

Loan 2224-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Dec 2005 23 May 2006 31 Aug 2006 30 Jun 2009 30 Nov 2009 25 Nov 2009
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 15.50 Cumulative Contract Awards
ADB 15.50 20 Dec 2005 16.73 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 20 Dec 2005 16.73 0.00 100%

TA 4747-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Dec 2005 12 Jan 2006 12 Jan 2006 31 Dec 2007 30 Sep 2008 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
600,000.00 0.00 110,000.00 0.00 0.00 0.00 710,000.00 20 Dec 2005 561,042.77
Title Document Type Document Date
Banking Sector and Capital Market Development Program Project/Program Completion Reports Dec 2010
Loan Agreement for Banking Sector and Capital Market Development Program between Kyrgyz Republic and ADB Loan Agreement (Special Operations) Dec 2006
Banking Sector and Capital Market Development Program Reports and Recommendations of the President Nov 2005
Financial Sector Reforms Technical Assistance Reports Dec 2002

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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