Published
11/25/2025, 17:08The volume of overdue loans in the Kyrgyz banking system is growing. At the end of September, it amounted to 8 billion KGS, or 1.74% of the total loan portfolio (460.6 billion KGS).
Moreover, since the beginning of the year, the volume of overdue loans has increased by 25.8%.
Islamic financing stands out against the backdrop of general statistics. On the one hand, the sector has seen a decrease in the absolute volume of overdue Islamic loans by 17.5% or 100 million KGS. On the other hand, despite a significant reduction, the share of overdue loans in Islamic financing is higher than in conventional financing.
Thus, the volume of overdue financing issued under Islamic principles amounted to 300 million KGS, or 1.82% of the total volume of financing under Islamic principles (16.5 billion KGS). For comparison, even with an increase in the volume of overdue loans in conventional banking by 1.6 billion KGS, they account for only 1.74% of the banking system's loan portfolio.
This means that the share of non-performing loans is higher in relation to the total volume of Islamic financing. This may be due to the specific features of Islamic financing mechanisms, risk distribution principles and the structure of clients who choose these products.
