The Ministry of Finance deposited less than half of the declared funds in banks

Following the auction for temporarily available budget funds, the Ministry of Finance placed less than half of the declared amount on deposit with commercial banks.

The auction took place on January 19 at the Kyrgyz Stock Exchange. With an announced amount of 20 billion KGS, the total demand from banks amounted to 11.95 billion KGS. As a result, the Ministry of Finance decided to place only 9.6 billion KGS, or 48% of the declared amount, on deposit.

The money was placed for a term of 12 months. The minimum interest rate on satisfied applications was 11% per annum, the maximum was 14.1%. The average rate based on the auction results was 12.55% per annum.

It should be recalled that the starting rate on deposits was set by the Ministry of Finance at 11% per annum, and the placement was supposed to be in separate lots for up to 20 billion KGS. However, the actual parameters of the auction showed limited interest from the banking sector in placing budget funds.