BISHKEK (TCA) — On September 13, the State Service for Regulation and Supervision of Financial Markets of Kyrgyzstan and the World Bank have launched a new technical assistance project aimed at improving the quality of audit and financial reporting in the Kyrgyz Republic. The Kyrgyz Audit and Reporting Enhancement project (KAREP), funded by the Government of Switzerland through the Swiss State Secretariat for Economic Affairs (SECO), will work to enhance the investment climate in Kyrgyzstan by increasing the availability of transparent and reliable financial information, the Embassy of Switzerland in the Kyrgyz Republic said.
Over the course of three years, the State Service for Regulation and Supervision of Financial Markets and the World Bank will work towards raising the quality of audit services and building trust in the audit profession, as well as strengthening financial reporting capacity and raising public accountability of state-owned enterprises. In addition, the KAREP project will help SMEs to bridge their accounting knowledge gap and compile financial statements acceptable to local banks, thus, contributing to improvement of access to finance for smaller businesses.
“KAREP is an important government-driven and government-led initiative to modernize and strengthen corporate financial reporting policies and practices in the public and the private sector in Kyrgyzstan. This will contribute to improved governance through the adoption of international best practices in financial reporting and auditing. This is an ambitious goal, but we certainly have the right partners to succeed,” said Ambassador of Switzerland to the Kyrgyz Republic Véronique Hulmann.
“Increasing transparency and accountability of the Kyrgyz economy is among the priority tasks of the Kyrgyz Government’s ‘40 steps to New Era’ and also of the 2014-2020 Strategy for development of financial reporting of the Kyrgyz Republic,” said Sanjar Mukanbetov, head of the State Service for Regulation and Supervision of Financial Markets. “The project will contribute to building a more transparent relationship between the state and the private sector, which is prerequisite for promoting competitiveness, diversification, productivity and job creation in the Kyrgyz Republic.”
Bolormaa Amgaabazar, World Bank Country Manager in the Kyrgyz Republic stressed the importance of the effective financial reporting as a measure to improve business environment in the Kyrgyz Republic. “The improved understanding and use of financial information will establish a basis for informed decision making by business owners, investors and lenders, enhanced supervision by regulators and better access to finance for growing enterprises,” said Bolormaa Amgaabazar.
The project will benefit the Kyrgyz business community and other stakeholders, including state and privately owned companies, SMEs, Kyrgyz government and regulators, accounting and audit profession in general, as well as students majoring in related disciplines. It will be managed by the Centre for Financial Reporting Reform (CFRR), the World Bank’s specialist center in Vienna for providing knowledge and advisory services to support reforms in financial reporting.
