Collateral valuation in the regions requires taking local specifics into account, economists say

Economists stress that correct collateral valuation in different regions of Kyrgyzstan requires separate standards that take local specifics into account. According to the experts, the single approach in force throughout the country does not allow fixed assets in different places to be valued adequately.

The need to take regional specifics into account in collateral valuation

Azizbek Beksultanov, head of the Department of Economics and Management at Ryskulbekov Kyrgyz Economic University, Doctor of Economics and Professor, noted that it is impossible to apply the same methods for valuing fixed assets in Batken or Naryn region as are used in Bishkek.

Sabyt Aibalaev, a financial consultant at the Entrepreneurship Support Center of the JIA business association, also pointed to the difference in property prices between the regions and the capital. According to him, the requirements for borrowers are the same across the republic, but this may create problems on the ground.

The experts also stressed that requirements that can be met in Chui region may prove impossible to meet in Batken.

Recommendations for government agencies

In this regard, the Ministry of Finance and the relevant agencies are advised to draft new provisions that will take into account the specifics of collateral valuation in various regions of the country.