Russia (bbabo.net), - Gazprombank, one of the largest Russian banks, will help Kyrgyzstan implement a banking support mechanism in the public procurement system. The corresponding action plan in the presence of the Minister of Finance of the Republic Almaz Baketaev was signed by the Executive Vice President - Head of the Department of Banking Support of Bank Contracts Oleg Melnikov and Deputy Minister of Finance, Director of the Central Treasury Mels Attokurov.
The meeting was also attended by representatives of Kyrgyz banks with state participation and key government customers. A consistent action plan was developed in pursuance of a memorandum signed in November last year during a visit to the Russian Federation by the chairman of the Cabinet of Ministers of Kyrgyzstan - the head of the presidential administration of Kyrgyzstan. The work is carried out as part of the instructions of the President of Kyrgyzstan Sadyr Zhaparov to carry out a large-scale reform of the public procurement system.
The main goal is to ensure control over the spending of budget funds. This is also of interest to the state, which receives an effective tool to combat the misuse of funds, and business, which will receive guarantees of strict fulfillment of the conditions of purchases. In addition, the new service will make it possible to generate financial statements that are understandable to everyone, make the pricing procedure for purchased goods, works and services transparent, optimize the volume of advance payments and form a line of suppliers that have proven themselves as reliable partners of the state.
"Today, the introduction of banking support in Kyrgyzstan is in full compliance with the signed memorandum," notes Oleg Melnikov. the potential for the development of banking support for contracts on the territory of the republic. The use of the tool will strengthen control over the settlements of contractors receiving funding from the budget, provide additional guarantees for the execution of contracts, which ultimately will allow achieving the best results in the implementation of the state's procurement policy."
This mechanism has been operating in Russia for quite a long time and is of considerable interest in the business circles of the near and far abroad. In 2019, Gazprombank developed a fundamentally new service to ensure control over the targeted spending of funds when implementing projects in foreign countries. The developers have tried to minimize the possible risks for clients participating in projects.
"In order to strengthen financial stability in the management of public finances to implement the requirements of the President of the Kyrgyz Republic Sadyr Zhaparov, the Ministry of Finance, together with Gazprombank, is developing new approaches," Almaz Baketaev commented on the agreement. "One of them is banking support for contracts, which will ensure the targeted use of budgetary funds The launch of this project will contribute to the effective tracking of the movement of budget funds up to the final implementation of government contracts."
In this case, close cooperation between representatives of the two parties is expected. Gazprombank will conclude an agreement with Kyrgyz partner banks. This will create a common information system, which will provide the necessary control over the movement of funds in the execution of government contracts. For the successful implementation of the plan, Gazprombank will adapt the product to the requirements of the legislation of Kyrgyzstan, and will also take into account the technical wishes of partner banks. The end result will be that the customer of the service will have access to banking support services, including interactive reporting, in the same volume and with the same quality as with banking support for projects in the Russian Federation.
It will take several months to create a joint "functionality", after which the project will work in full mode. In practice, banking support shows its effectiveness in almost any large construction site - from the construction of residential buildings to highways, power plants and energy complex facilities. Using the "Interactive Reporting" service, for example, the customer will be able to track the movement of funds within the project in real time, promptly responding to emerging risks.
By the way, Gazprombank accompanies the implementation of large-scale investment initiatives in other CIS countries. The accumulated experience will be taken into account when implementing the project in Kyrgyzstan, which will be done by a specially created working group. She will have to ensure the readiness of the republic's public procurement program for the transition to banking support as early as July 2022.
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