Will the SCO bank with an office in Bishkek be? Experts’ opinion

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Will the SCO bank with an office in Bishkek be? Experts’ opinion 18.04.2018 14:19



The future of the bank of the Shanghai Cooperation Organization headquartered in Bishkek is vague, experts say. They discussed the fate of this project at the Eurasian Integration Forum "Prospects for the Development and Strengthening of the SCO", which takes place on April 17-18 in Sochi.

Would it be opened on the base or from the beginning?

At the opening of the bank in the capital of Kyrgyzstan, the former president of the republic, Almazbek Atambayev, insisted on the SCO summit in 2017.

"Kyrgyzstan was one of the founders of the SCO, and the priority for us is the creation of an organization's bank, we want it to be established and its main office located in Bishkek," Atambayev said.

His successor Sooronbai Jeenbekov will support this idea, the former Minister of Economic Regulation of the Kyrgyz Republic, Jenishbek Baiguttiev, is sure. However, according to the expert, the very draft of the new bank is still unprepared.

"The idea of the SCO bank has been in the air for a long time, but the economic “filling” of the organization is not yet at the proper level, but all the contradictions about the bank have not been eliminated, for example, it is not clear whether to open it on the basis of, say, the Eurasian Development Bank, or from scratch", - says Bayguttiev.

"There is a chronic underfinancing of projects in Central Asia, and in Russia, too". At the same time, the EBD has not yet reached its maximum projected capacity, and therefore the work on the organization of a new international bank leads to the question: Is it too early?" - says Bayguttiev.

He was supported by Andrei Klepach, deputy chairman of Vnesheconombank.

"It is not difficult to raise funds and open a bank, but it is more important to deploy the existing Eurasian investment bank or the BRICS Bank, to fill them with projects that are" tied up "in the SCO states", Klepach said.

Another obstacle in the way of the SCO bank is the new anti-Russian sanctions. In the difficult economic conditions that affect both Russia and its neighbors, long-term economic plans may be postponed.

If the bank is still created, then it will support, according to Baiguttiev, the infrastructure and logistics of the member states of the organization. Credits in the bank will be issued not only for interstate, but also for in-country needs, depending on the possible benefits for the SCO as a whole.

The former minister defined the term for the creation of an international bank - about two years. If at the next summit of the Shanghai Cooperation Organization on July 10 this year the idea of the bank is heard and approved, it will not appear until 2020.