The Ministry of Economic Development plans to develop a mechanism for compensating small and medium-sized businesses for damage from "illegal or unjustified actions of government agencies."

Юлия Воробьева Exclusive
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The Ministry of Economy of Kyrgyzstan intends to create a mechanism for compensating the damage incurred by small and medium-sized businesses due to "illegal or unjustified actions of state bodies." This initiative is included in the draft plan for the implementation of the Support and Development Program for Small and Medium Enterprises [SME] until 2030.

According to the description of this measure, it will represent a "legal mechanism for compensating material and non-material damage caused to small and medium-sized enterprises as a result of actions by state bodies and officials recognized as illegal or unjustified."

It is planned that the implementation of this mechanism will begin in the fourth quarter of 2025.

Among the key results expected from the Ministry of Economy's plan, the following are highlighted:

- a direct prohibition on the seizure, nationalization, and demolition of SME facilities without a court decision;

- mandatory notification of the entrepreneur at least 36 months in advance;

- compensation will be made at market value with independent assessment and payment before the transfer of the facility;

- an expedited appeal process is provided (no more than 60 days) with a suspension of actions until the complaint is considered;

- a reduction in the share of cases of sudden cessation of activities due to loss of property is planned.
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