KG Financial Sector Development Project

closed

The objectives of the Financial Sector Development Project for Kyrgyz Republic are: (1) to enhance financial sector stability, and (2) increase access to financial services. The project has four components. Component 1: Strengthening the legal, regulatory, and supervisory framework for banks, Micro Finance Organizations (MFOs), and credit unions. This component will support measures to improve the legal, regulatory, and supervisory framework for the banking sector and increase the National Bank of the Kyrgyz Republic capacity to monitor and address vulnerabilities. Component 2: Expanding financial services via Kyrgyz Post Office's (KPO) network. This component will transform KPO's existing operation into a cost-effective distribution channel for basic financial services to increase access by poor and rural communities. Component 3: Supporting Aiyl Bank for privatization and deposit mobilization by providing: (i) technical assistance to mobilize deposits; (ii) technical assistance to finalize an action plan for privatization; (iii) technical assistance to implement the action plan for privatization; and (iv) a credit line to respond to liquidity needs while deposits are building and privatization is being prepared and carried out. Component 4: Modernizing the moveable collateral and debt resolution regimes by improvements in the legal and regulatory framework for secured lending and debt resolution; modernization of the collateral registry; and capacity building of stakeholders.