The Ministry of Finance announced an additional auction for the placement of funds from the ‘mitigation account’

The Ministry of Finance announced that on 19 September, it will hold an additional auction to place funds from the ‘mitigation account’ in deposits with commercial banks in the country.

Two lots totaling 3.7 billion KGS will be put up for auction. The first lot is for 1 billion KGS, and the second is for 2.7 billion. Both lots involve placing funds for 36 months. The expected yield is 12.1%.

As specified by the ministry, the decision on additional placement was made as part of the policy of effective management of state resources and maintaining liquidity in the financial market.

Such auctions allow the state to temporarily direct free funds to the banking sector, receiving interest income, and commercial banks to attract additional resources for lending to the economy. Earlier, on 17 September, the Ministry of Finance had already placed 20.3 billion KGS through an auction, with demand exceeding supply by more than two times.

We would like to add that if the auction is successful, the Ministry of Finance will place 24 billion KGS in commercial banks, as originally announced during the first auction.