The SCO Bank is still in the planning stages, but Kyrgyzstan is already counting on its funding

On March 30, the first multilateral consultative meeting on the establishment of the SCO Development Bank was held in Beijing, where Kyrgyzstan expressed its readiness to actively advance the negotiation process during its chairmanship of the organization.

During the meeting, Kyrgyzstan’s Deputy Minister of Finance Nurbek Akzholov held talks with China’s Deputy Minister of Finance Liao Min. The parties focused primarily on shaping the architecture of the future SCO Development Bank—discussing principles of capital formation, institutional structure, and ensuring equal participation of member states.

The establishment of the bank is viewed as a key element in strengthening economic cooperation within the Shanghai Cooperation Organization. Kyrgyzstan confirmed its readiness to play an active role in this process.

Additionally, the Kyrgyz side proposed expanding the Asian Infrastructure Investment Bank’s participation in the republic’s projects—primarily in hydropower, transportation, and digital infrastructure. The possibility of joint financing of projects involving the AIIB and the future SCO Development Bank was also discussed.

Work on establishing the financial institution gained momentum following decisions made at the SCO summit in Tianjin in September 2025. At that time, the member states agreed to establish the bank and begin consultations on its operations.

The establishment of the bank fits into a broader trend of reforming the international financial architecture and strengthening the role of developing countries. At the same time, discussions continue within the SCO regarding the institution’s format—a full-fledged development bank, as promoted by China, or alternative mechanisms, including a fund.

For Central Asian countries, including Kyrgyzstan, the launch of the SCO Development Bank could become a new source of financing for infrastructure projects and a catalyst for economic growth, while for China, it serves as a tool for expanding its financial and economic influence in the region.