The financial cushion of depositors in the Deposit Protection Fund is growing thanks to investments in government securities

The Kyrgyz Deposit Protection Agency not only ensures the stability of the banking system, but also effectively manages accumulated funds. According to the agency, the Deposit Protection Fund's resources are used to purchase government securities issued by the Cabinet of Ministers and the National Bank.

This approach allows two objectives to be achieved simultaneously: firstly, to support the country's economy through investment in government projects and, secondly, to increase its own resources through investment income.

Thus, in the second quarter of 2025, the Agency received 247 million KGS from investments in government securities, and since the Fund's creation in 2010, the accumulated net income has already reached 3.3 billion KGS.

It should be recalled that the Deposit Protection Fund is formed from regular contributions from banks and microfinance organisations that are members of the system, investment income from investments and an initial contribution from the government.

As a result, in the first six months of the year alone, the Fund's volume increased by 1 billion KGS to 8.5 billion KGS.

This is a significant financial reserve that guarantees the return of deposits in the event of bankruptcy of a financial institution.

If a bank or microfinance organisation participating in the system is unable to fulfil its obligations to depositors, the Deposit Protection Fund will compensate the amount of the deposit up to 1 million KGS per person.