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Kyrgyzstan Review, 10 years ago

[14.04.23] 100 Thousand Soms - Net Profit of Kyrgyzstan Investment Funds

Kyrgyzstan investment funds generated 100 thousand soms in net profits, reported U.Abdynasyrov, head of government committee on stock market. "The objective now is to close the remaining investment funds without any scandals", he added.
According to U.Abdynasyrov, last year net assets of Special Investment Funds amounted to 20 mln soms and are continually going down. Aggregate SIF investment is 17,4 mln soms, 14 mln of them - in the stocks
One of the reasons to account for the poor situation is lack of population confidence in the financial sector, including commercial banks, pointed out U.Abdynasyrov.
SIF are "on sale" now, that is they become joint ventures and the main objective now is to close down the remaining ones without scandals.
U.Abdynasyrov emphasized that we need to create new investment funds that are not stained by debts. There are 13 SIFs in the country at the time. Some of them have switched to other types of economic activity, the others are being gradually liquidated. Debts are a major problem for many. During privatization of state property many of SIF purchased "junk" stock of fake companies that wen bankrupt.
According to U.Abdynasyrov a new law of the Kyrgyz Republic "On the changes to the law of the KR 'On Investment Funds'" signed by President Akaev on April 8, 2003, will tighten control over SIF activity and stabilize the market.
NA "AKIpress", April 14, 2003

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