The Ministry of Economy and Finance of Kyrgyzstan outlined the main directions of reforms in management of state assets.
The reform of the state property management system is determined by one of the five key areas of economic development. Its ultimate goal is to create conditions for developed market infrastructure. At the same time, minimization of state interference in the economy, along with the institutions of inviolability of private property and investment protection, developed competition and integration of the country into international trade, is a prerequisite for economic development.
Therefore, it was decided to liquidate or privatize ineffective non-strategic enterprises, transform them into state institutions financed from the budget.
In addition, to resolve issues of local importance, state assets will be transferred to local governments. The remaining state-owned enterprises will be reorganized through consolidation and subsequent corporatization.
“As for business entities with state participation, measures will be taken to privatize state blocks of shares and state shares in non-strategic companies operating in a competitive environment. A number of companies will be transferred to trust management to improve the efficiency of operating activities. Independent directors will work in the management bodies; investment projects and public-private partnership projects for development of infrastructure will be initiated. In the medium term, it is planned to transfer the remaining companies after optimization to several state holdings – management companies (Energy Holding, mining and others),” the Ministry of Economy and Finance said.
At the same time, the ministry especially notes that privatization issues will not be considered in relation to state-owned social facilities that perform direct state functions and provide socially significant services to the population. These facilities will operate under the jurisdiction of ministries, departments and local governments. (24.kg/Business World Magazine)
