“Relations between Hungary and Kyrgyzstan have never been so close, friendly and of a strategic nature as they are today, as supported by the fact that all conditions, including amongst others the legal and financial background, are given for close cooperation to be established between Hungarian and Kyrgyzstani enterprises”, Minister of Foreign Affairs and Trade Péter Szijjártó said at the Kyrgyz-Hungarian business forum in Budapest on Tuesday.
Mr. Szijjártó added that on Tuesday officials from the two countries signed an investment promotion agreement and an agreement on avoiding double taxation, which provide the legal background for Hungarian enterprises to appear in Kyrgyzstan. “The financial background will be guaranteed by the Hungarian-Kyrgyz Development Fund, the establishment of which was also agreed upon by the parties on Tuesday. Hungary’s Eximbank is providing 50 million dollars towards the development fund, and this sum will serve to finance relations between Hungarian and Kyrgyzstani enterprises. In order for Hungarian enterprises to be able to appear on the Kyrgyz market, they also require the Hungarian state’s personal presence in the Central Asian country, which is being taken care of by the Hungarian Embassy opened earlier this year in the capital of Kyrgyzstan, Bishkek”, the Minister stated.
According to the Hungarian Foreign Minister, only the creation of a direct link between the two countries remains under negotiation, in the interests of which talks are ongoing with Hungarian airline Wizz Air concerning the launching of a direct air passenger service between Budapest and Bishkek. Mr. Szijjártó mentioned that Hungary launched its Eastern Opening policy in 2010, for which it received much criticism. He highlighted, however, that thanks to the policy, Hungarian exports towards the East have increased by 22 percent over ten years, and last year the ratio of foreign investment in Hungary from the East increased to 60 percent, and 40 percent of the new workplaces being created in Hungary are linked to these investment projects. “As part of its Eastern Opening strategy, Hungary must also keep an eye on the Central Asian region, in view of the fact that market opportunities are also opening up for Hungarian enterprises thanks to the rapid rate of economic growth of the region’s countries”, he stated.
Mr. Szijjártó told reporters that water is a critical issue in Central Asia, in view of which the Minister recommended Hungary’s internationally competitive water management technologies to the Kyrgyzstani businesspeople at the forum. He also highlighted the high level of technological development of the Hungarian food industry and agriculture, as well as of its pharmaceutical industry. With relation to the latter, he stated that in Kyrgyzstan, Hungarian pharmaceutical company Richter is the flagship of the Hungarian economy. According to the Minister, developing relations between people is also important, and accordingly the number of Kyrgyzstani students being afforded scholarships to attend Hungarian universities each year is being increased from 75 to 150. Kyrgyzstan’s Minister of Economy Sanzhar Mukanbetov said the bilateral negotiations had been extremely successful, and will provide the energy and impetus to enable the two countries to develop even closer relations.