The mortgage portfolio of Kyrgyzstan's banks has shrunk by 10.6 billion KGS since the beginning of the year

Despite the overall growth in lending in Kyrgyzstan, the banking sector’s mortgage portfolio saw a significant decline in the first quarter of 2026.

According to the National Bank, as of March 31, the volume of mortgage loans stood at 54.3 billion KGS. Compared to the end of 2025, this is 16.4% less, or 10.6 billion KGS. This was the most significant decline among all major areas of bank lending.

By comparison, the banking system’s total loan portfolio grew by 6.5% over the same period—to 540.1 billion KGS. Thus, mortgages were the only major segment to show a double-digit decline.

Amid the contraction of the mortgage portfolio, banks actively increased consumer lending. Their volume increased by 16.6% to reach 198.6 billion KGS. Growth was also recorded in trade (+7.6%), industry (+26.9%), agriculture (+1.4%), and construction (+1%).

As a result, the share of mortgages in the structure of banks’ loan portfolios continues to decline. While mortgage loans accounted for about 12.7% of all bank loans at the end of 2025, this figure had fallen to 10% by the end of March 2026.

One possible reason for the decline in the mortgage portfolio may be a shift in demand toward government housing programs.