Economic Recovery Support Operation

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The objective of the Economic Recovery Support Operation Program (ERSO) is to strengthen governance in the management of public assets and revenues through maintaining Ministry of Finance's control over all capital spending by abolishment of the off-budget development fund and asserting stronger budget control, enhancing transparency in privatization process, establishing proper accounting and improving operational performance in the energy sector, and maintaining financial sector stability. The document describes a program of policy actions taken by Government of Kyrgyz Republic to promote economic recovery that are supported by the ERSO in the amount of US$ 30 million. The actions taken are aimed at stabilizing the economy, strengthening governance and safeguarding social spending in the face of fiscal pressures arising from the impact of political and civil conflict during April and June 2010. The ERSO supports policy actions implemented between April 2010 and June 2011 aimed at stabilizing the economy, strengthening governance and safeguarding social protection. The operation is in line with the Bank's assistance strategy as outlined in the Interim Strategy Note (ISN) that covers fiscal years 2012 and 2013. The ISN will be discussed by the Board of Executive Directors jointly with this operation in August 2011. The pillars of the interim strategy, economic stabilization, improved governance, and social stabilization, are the areas of policy focus in the ERSO.