The Ministry of Economic Development plans to develop a mechanism for compensating small and medium-sized businesses for damage caused by "illegal or unjustified actions of state authorities."

Анна Федорова Exclusive
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The Ministry of Economy intends to create a compensation system that will help small and medium-sized businesses recover losses incurred as a result of "illegal or unjustified actions by government authorities." This proposal is part of the draft plan for implementing the Support and Development Program for Small and Medium Enterprises (SMEs) in Kyrgyzstan until 2030.

As stated in the description of this measure, the mechanism will include "legal means for compensation for both material and non-material damage caused by illegal or unjustified actions of state structures and their representatives."

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

Among the main outcomes expected from this initiative by the Ministry of Economy are:

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

- mandatory notification of entrepreneurs at least 36 months in advance;

- compensation based on market value, with an independent assessment conducted and payment made before the transfer of the facility;

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

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