Financial Sector Review for Kyrgyz Republic

Hatice Jenkins

No 1996-06, Development Discussion Papers from JDI Executive Programs

Abstract: The Republic of Kyrgyzstan introduced radical reforms to restructure its financial sector to accelerate the transformation of its centrally planned economy to a market-based economy. High interest rates charged on loans is one of the major financial problems for trade and industry sectors in Kyrgyzstan. Today, working capital finance and investment finance are the two main constraints to the expansion and modernization of the industries in Kyrgyzstan. Banks are also not able to attract a significant part of the available domestic savings. As a result personal and corporate savings are being held outside of the formal financial system. The current tax legislation in Kyrgyzstan is another factor and causing mistrust for the banking sector. According to the legislation the tax inspectors have access to the deposit accounts of savers. The banking sector of Kyrgyzstan presents the common problems of banks in other transitional socialist economies. They are old fashioned and they do not have the institutional capacity to operate in a market oriented economy. Banks, in general, are not service oriented. The procedures are too long and the buildings of banks are not designed to service the daily transactions of the depositors and borrowers.

Keywords: Financial policy; central bank; banks; financial reforms; Kyrgyzstan; financing private enterprises; trade finance (search for similar items in EconPapers)
JEL-codes: E58 F38 P21 (search for similar items in EconPapers)
Pages: 30 pages
Date: 1996-06
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://cri-world.com/publications/qed_dp_258.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qed:dpaper:258

Access Statistics for this paper

More papers in Development Discussion Papers from JDI Executive Programs Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().