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Investment Inflow and capital outflow: what do these indicators depend on?

October 15, 2019

“Working with existing investors requires no less attention than attracting new investors to the country. We openly say that there is a certain problem with this issue,” said Daniyar Mederov, IBC Deputy Executive Director at the KTRK talk show “Oi Ordo” to discuss how to retain and increase investments in Kyrgyzstan.

According to official data, along with the influx of investments, there is an outflow of capital from the country. Participants in the discussion tried to analyze how these two indicators are related.

Delegations from various sectors of the country's economy, sometimes representing 10-15 companies, often come to the IBC to speak about their problems, the main ones of which are relatively inconsistent fiscal policies and law enforcement interference in the entrepreneurs’ activity.

“We are often reproached for paying much attention to subsoil use. But this is the sphere of the economy that contributes to 8-10% of GDP. Meanwhile, it is this industry that is most often faced with problems, including increasing the tax burden and introducing changes to the regulatory function,” Mederov said.

Many business’s complaints are related to the Unified Deposit Account (UDA), which is formed due to misconduct and tax offenses. According to business information, this work, unfortunately, has become a kind of competitive incentive for law enforcement agencies to replenish the UDA, which is subsequently distributed in certain proportions between government agencies.

Therefore, IBC advocates revising the operation of the Unified Deposit Account and moving from the category of tax offenses to misconduct. Until now We do not see the classification of the transition to this UDA so far, Mederov said.

What else did the talk show participants talk about, watch here:" target='_blank'>[img-