The Ministry of Finance placed 20.3 billion KGS from the ‘mitigation account’ in commercial banks

On 17 September, the Ministry of Finance held an auction to place funds from the ‘mitigation account’ in commercial bank deposits. As a result, 20.3 billion KGS were placed, which corresponds to the established auction parameters.

The purpose of such operations is to maintain liquidity in the financial market and strengthen the stability of the banking system.

Placement results

• 12 months: of the declared 4 billion soms, banks submitted applications for 4.7 billion. Placed — 3.6 billion KGS. Rates ranged from 10.05% to 12.2%.
• 24 months: with an announced volume of 8 billion, demand reached 15.1 billion. 4.7 billion KGS were placed. Rates ranged from 11% to 12.7%.
• 36 months: maximum demand was 33.6 billion with an announced volume of 12 billion. A total of 12 billion KGS were placed at a rate of 13.1%.

The total demand at the auction amounted to more than 53 billion soms, which significantly exceeded the supply. Earlier, it was reported that the Ministry of Finance planned to temporarily place up to 24 billion KGS. The final placement turned out to be lower than planned despite high demand.