The National Bank has tightened its approach to foreign currency loans and unsecured loans

The National Bank of Kyrgyzstan has updated several important rules for banks and microfinance organizations. The changes concern how lenders assess the risks of loans they issue. The new rules will come into force 15 days after the official decree is published.

One of the main innovations is support for women's entrepreneurship. Now, if a bank issues a loan under a special program for women—with clear conditions, objectives, and indicators—it can set aside fewer funds in reserves. This makes such loans more profitable and easier for customers.

The National Bank has also tightened its approach to foreign currency loans. If a borrower has little income in foreign currency, the bank is required to classify such a loan as riskier and hold more reserves against it. The exception is large loans of KGS 100 million or more for projects that are strategically important for the economy.

The rules for unsecured loans are also changing. Banks will no longer be able to hand out such loans left and right — only for important purposes such as medical treatment, education, housing, or starting a business. The total volume of such loans is limited to reduce risks.

In addition, working with international investors is being simplified. If a loan or project is guaranteed by a reputable financial institution with a high rating, it will be subject to more lenient requirements. This could attract additional investment to the country on favorable terms.