Abylgaziev instructs to introduce key performance indicators in state-owned companies within two weeks

Bishkek, Sept. 17, 2018. /Kabar/. During a working meeting on the activities of state-owned joint-stock companies, Prime Minister Mukhammedkalyi Abylgaziev instructed the State Property Management Fund to introduce key performance indicators and management assessment criteria in state-owned joint-stock companies within two weeks.

During the meeting, which was also attended by heads of state-owned companies, Chairman of State Property Management Fund under the Kyrgyz Government Renat Tuleberdiev told that according to the order of Prime Minister Mukhammedkalyi Abylgaziev of July 2, at present key performance indicators (KPI) are planned to be introduced in 22 joint-stock companies, where the Fund is the holder of over 50% share.

It is suggested that key performance indicators (KPI) should be assessed according to the indicators accepted in developed economies, which include return on investment of shareholders, return on equity, return on assets, net interest margin, operating expense ratio, equity ratio, capital adequacy ratio, and share of overdue loans.

Prime Minister Mukhammedkalyi Abylgaziev particularly noted: “In the conditions of market relations, heads of enterprises should work efficiently, in accordance with contemporary market mechanisms. There should be open and transparent management, open competition between state-owned and private companies”.

“Within two weeks heads of companies are to make proposals, actively participate in the development of these criteria, according to which their work will be assessed and their salary will be defined. Everyone should understand the ‘rules of the game’”, Mukhammedkalyi Abylgaziev said.

Heads of companies supported this initiative, and expressed their proposals and comments, in particular related to the list of performance indicators of state-owned companies.

At the end of the meeting Abylgaziev instructed the Fund to introduce key performance indicators (KPI) in state-owned joint-stock companies within two weeks. In addition, the head of government required to thoroughly develop the criteria so that they ensure objective and comprehensive assessment of companies’ performance.