Published
06/12/2026, 14:34The National Bank of Kyrgyzstan has introduced temporary regulatory relaxations for banks and microfinance organisations that will refinance loans to businesses in the garment industry.
The relevant resolution of the National Bank’s Board was adopted on 10 June and will remain in force until 1 April 2027.
The document allows financial and credit institutions to classify new loans issued to refinance the debt of garment enterprises as ‘assets under observation’, with provisions set at just 5%. Normally, provisioning requirements for problem borrowers are significantly higher.
The preferential regime will apply to enterprises that have been operating for at least one year, conduct their business in accordance with tax legislation, and have no outstanding tax or insurance contribution liabilities.
At the same time, banks are required to conduct a thorough analysis of the borrower’s financial condition and ensure that the enterprise will be able to service the loan under the new repayment schedule. The maximum grace period for repayment of the principal is set at six months.
The National Bank has also provided for a mechanism to tighten requirements in the event of a deterioration in loan quality. If a delay in repayment occurs after refinancing, banks will be obliged to increase their provisions depending on the duration of the arrears. Thus, if a loan is more than 90 days overdue, it will be classified as a loss with a 100% provision.
The decision was taken as part of the Cabinet of Ministers’ project to support the garment industry, which is one of the country’s largest employers and an important export-oriented sector of the economy.
