Kyrgyz Republic : Fiscal Sustainability Study

Following the break-up of the Soviet Union, the economic contraction in the Kyrgyz Republic was among the worst experienced in the Commonwealth of Independent States (CIS), which had a serious impact on the country's fiscal policies. Despite these problems, the country made major efforts to restore growth and attain macroeconomic stability during 1996-97. However, this recovery was then hit by a series of natural disasters and a regional crisis. This report considers a three-fold strategy to deal with the current difficulties and restore fiscal stability, including a significant fiscal adjustment, debt restructuring, and reform of public utilities and the tax system.