Kyrgyzstan

Economy:
Kyrgyzstan is a poor, mountainous country with a predominantly agricultural economy. Agriculture (primarily cotton, tobacco, wool, and meat) employs 55 percent of the workforce. Per capita income is just $2,100 per year. Over 40 percent of the population lives below the poverty line. The dynamic informal sector provides alternative employment since neither the state nor privatized large industries are creating new jobs.

Kyrgyzstan has been progressive in carrying out market reforms, such as an improved regulatory system and land reform. The government and international financial institutions have been engaged in a comprehensive medium-term poverty reduction and economic growth strategy.

Climate for microfinance:
• Laws, regulations, and taxes governing business are fluid and confusing. Many FINCA clients learn the registration and tax requirements through their experience with FINCA.
• Kyrgyz citizens of all classes are starting informal businesses to generate alternative sources of income. Many of the unemployed work in bazaars--a very important part of the economy.
• All microfinance organizations must register with the National Bank of Kyrgyzstan. Most of the 72 registered organizations are listed as nonprofit "microcredit agencies."

FINCA Kyrgyzstan started in 1995 with a $6.2mm grant from USAID, which expired in September 2002. FINCA aims to serve 40,000 clients with a total of $36 million in loans by 2010. In Kyrgyzstan, women are very active in the economy, especially trade. As 70% of the unemployed in Kyrgyzstan are women, FINCA has targeted female bazaar workers as its primary clients.