Kyrgyz Republic

Key Activities

IFC’s Integrated Environmental, Social, and Governance Program aims to improve the country’s environmental, social, and governance (ESG) landscape and practices through a systemic approach at the regulatory, market, and firm levels. 

Regulatory Level 

IFC provides technical assistance to the Kyrgyz Stock Exchange on the development of ESG disclosure guidelines. The document will contribute to forming the ESG financing infrastructure, from proper enhancement of reporting requirements to the integration of corporate ESG frameworks in listed companies and banks.

Market Level 

The program signed cooperation agreements with several partners in the Kyrgyz Republic to build the capacity of local experts in support of ESG practices. Partners include the Union of Banks, the Audit Plus company, Chamber of Independent Directors, and Development Centers of Local Municipalities. The partners are part of the greater regional network of partners in Europe and Central Asia, which enables transfer of ESG knowledge and tools and exchange of experience among the partners. 

In cooperation with Union of Banks and the United Nations Partnership for Action on Green Economy Program, IFC contributed to the development of the Kyrgyz Republic Sustainable Finance Road Map that provided a holistic action plan toward creating sustainable finance and an ESG framework in the country.

Firm Level 

As an investor and one of the global development financial institutions, IFC has in-depth expertise in identifying and managing risks that hinder the improvement of efficiency and investment attractiveness of companies. The program provides advisory services to private sector companies and banks on improving ESG practices by assessing the practices and supporting ESG improvement plans.

Major Achievements

IFC has advanced corporate governance awareness, practices, and standards in the Kyrgyz Republic since 2007 and made several contributions to the regulatory framework and business environment. IFC’s active involvement in regulatory work has contributed substantially to the introduction of corporate governance standards for business and provided small and medium companies with a road map for growth.

Initially IFC contributed to the development of the Kyrgyz Republic’s first national Corporate Governance Code, which was adopted by the Service for Regulation and Supervision of the Financial Market in 2012. Later, IFC also supported the service with the development of the new version of the code, which was approved in December 2020. The code is based on local legislative requirements and international standards, including the Organisation for Economic Co-operation and Development Corporate Governance Principles and integrated environmental and social considerations. IFC contributed significantly to the Corporate Governance Guidance for State-Owned Enterprises of the Kyrgyz Republic.

IFC provided technical support in key corporate legislation, including:

  • The Kyrgyz Republic Law No. 206 on the National Bank of the Kyrgyz Republic, Banks, and Banking Activity (2016) that incorporated fundamental innovations into national legislation to make the country’s bank governance more comprehensive and transparent for potential investors;
  • The Kyrgyz Republic Joint Stock Companies Act, which strengthened minority investor protection, board independence, and subsidiary governance.

IFC also supported the development of local capacity, working with several local organizations to help develop their skills on delivery of trainings and advisory on corporate governance.

IFC has been supporting gender-related activities, including the global Ring the Bell for Gender Equality initiative with Kyrgyz Stock Exchange and the UN Women office in the Kyrgyz Republic since 2021. Ring the Bell for Gender Equality events highlight the importance of gender equality for economic development and growth, an issue of even more importance given the COVID-19 pandemic’s economic and social consequences, the ongoing climate change crisis, and the global economic downturn. 

Our Development Partners

The program is implemented in partnership with the Switzerland State Secretariat for Economic Affairs (SECO). 

integrated esg

Our Local Partners