The Ministry of Finance explains why Kyrgyzstan is recapitalising state-owned banks

Ruslan Suynaliev, Kyrgyzstan’s Minister of Finance, stated that the state will continue to support and recapitalise state-owned banks in order to expand lending to farmers and entrepreneurs.

During the ‘Open Cabinet’ event, Ruslan Suynaliev commented on the issue of competition between banks and the state’s role in the banking sector.

According to the minister, state-owned banks are currently competing with one another and continue to receive support from the authorities. This refers to the capitalisation of banks — increasing their financial capacity to expand their loan portfolios.

“We are capitalising the banks so that their loan portfolios can grow and they can help our citizens, our farmers,” said Suynaliev.

He noted that programmes to finance agriculture and support entrepreneurs are being implemented through the banks. This includes preferential and interest-free loans, which were provided with the support of donors.

The Finance Minister emphasised that the work of the government, the National Bank and state-owned banks is aimed at supporting citizens and developing the economy.