Press Release

For Immediate Release

August 9, 2007

Contact: 202-521-3880

Email: info@mcc.gov

MCC Board Approves Assistance to Support Governance Reforms in the Kyrgyz Republic

Fact Sheet

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Washington, D.C.  The Board of Directors of the Millennium Challenge Corporation today approved Threshold Program funding supporting the Government of the Kyrgyz Republics efforts to fight corruption and improve the rule of law.

MCCs Threshold Program will provide roughly $16 million in assistance to help the Kyrgyz Republic address judicial, criminal justice and law enforcement reforms. The Government of the Kyrgyz Republic plans, for instance, to create a civilian oversight board for the police as well as implement a broad anti-corruption education program.

MCC has two assistance programs, Compacts and Threshold. In determining eligibility for MCCs larger Compact program, MCC considers three factors: performance on the policy criteria as measured by 16 independent policy measurements, the opportunity to reduce poverty and the potential for economic growth. The assistance being provided to the Kyrgyz Republic is part of MCCs smaller Threshold Program that assists countries on the threshold of Compact eligibility, meaning those who have demonstrated a significant commitment to improving their policy indicators but do not yet qualify for the larger assistance program.

The process of reform in the Kyrgyz Republic has begun and much work remains, particularly with regard to implementing some of the recent legal changes, Ambassador John Danilovich, CEO of MCC said. We are excited about helping the citizens of the Kyrgyz Republic address such major issues.

The Kyrgyz Republic has recently initiated a number of reforms to make its judiciary more independent, transparent and effective. In addition to legislative initiatives, the government continues to move forward on implementing other reforms through draft regulations and presidential decrees. Additionally, the government is proceeding with anti-money laundering legislation and is making progress on decentralization reforms, while at the same time adding more judges to the lower courts in order to help implement their new responsibilities.

The U.S. Agency for International Development, or USAID, will oversee implementation of this Threshold Program on behalf of MCC.

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Millennium Challenge Corporation, a U.S. government corporation designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of extreme poverty.