Debt collection Kyrgyzstan
Kyrgyzstan is a landlocked, mountainous, low income country.
The strengths of Kyrgyzstan economy are autonomous agriculture, export of gold and mercury, the presence of rare earth metals. Weaknesses are low industrial development, lack of in-house technological base, the corruption of governmental officials. Agriculture in Kyrgyzstan is a significant sector of the economy.
Foreign trade is weak with negative trade balance. Kyrgyzstan leading trade partners include Russia, Ukraine, Kazakhstan, Turkey, USA and China.
The country is divided into north and south by mountain ranges. Northern culture has been influenced by Russians, while southern culture has absorbed Uzbek traditions. The culture of central Kyrgyzstan is relatively isolated.
There are two official languages in Kyrgyzstan: Russian and Kyrgyz from Turkic language group. Many business and political affairs are carried out in Russian. People in Kyrgyzstan almost don’t speak English.
The main challenges to collect debt in Kyrgyzstan are:
- Unpredictability of business due to corruption, interference of government bodies, and lack of protection for private property
- Low understanding of the principles of working with European and US partners.
- Low penetration of English may create difficulties in understanding business partners.
How to collect debt in Kyrgyzstan?
Amicable collection is the most effective and cost-saving way to recover debt in Kyrgyzstan. It is advised to refer case to collection when the debt is delinquent over 3 months. The less delinquency is the more chances to collect debt are.
Amicable collection is applicable almost in any case apart from case of debtor’s bankruptcy or liquidation.
Amicable collection is still possible even after statute of limitations (3 years) expired, though chances to collect in such case would be very small.
What we do to recover a debt in Kyrgyzstan?
- study case details
- find core reason of failing to pay
- find debtor’s decision makers and financial controllers
- resolve language and cultural issues to reach payment agreement between creditor and debtor
- resolve legal and administrative problems to facilitate pending payments
- consult in finances to enable debtor to pay
- consult in local legislation and business threats to convince debtor to pay
How long it takes in Kyrgyzstan?
Average time to recover debt in Kyrgyzstan is 88 days.
What the fees are?
The success fee makes 18% commission from any money recovered.
No collection – no fee policy applies..
- we know local Kyrgyzstan laws, finances and customs
- we charge no fees, unless debt is recovered
- we provide operative reporting
How to send case?
- Send your unpaid invoices and supporting documents for our review.
- Sign our debt collection contract and POA received from the manager.