The Ministry of Finance will put 20 billion KGS up for auction. Banks will compete for budget funds

The Ministry of Finance announced an auction on January 19 for the placement of temporarily available funds from the budget system in commercial bank deposits. The auction will be held on the Kyrgyz Stock Exchange.

According to the published parameters, the Ministry of Finance plans to place 20 billion KGS for a period of 12 months. The placement will be carried out in 21 lots — from 100 million to 2.8 billion KGS, with the starting interest rate for all lots set at 11% per annum.

Thus, banks will be able to compete for budget liquidity within the framework of a deposit auction.

The Ministry of Finance has previously used deposit auctions to place funds from the mitigation account.

Thus, following the results of an additional auction held on September 19, 2025, 3.7 billion KGS were placed in commercial bank deposits for a term of 36 months. Demand fully matched supply, and the rates on satisfied bids ranged from 12.1% to 12.5%.

The instrument was first tested on September 17 last year. At that time, the Ministry of Finance placed 20.3 billion in the main auction:

• 12 months — 3.6 billion KGS placed at a weighted average rate of 11.54%;
• 24 months — 4.7 billion KGS placed at 11.8%;
• 36 months — 12 billion KGS placed at 13.1%.

The high level of demand across all maturities, especially for long-term deposits, showed significant interest from banks in budget liquidity.

The launch and development of deposit auctions based on the Kyrgyz Stock Exchange allow government agencies and organizations to place money on market terms, ensuring competition between banks and transparency of rates.