The volume of government funds held in deposits rose by 24.9%

By the end of March, the deposit base of Kyrgyzstan’s banking sector had grown to 916.5 billion KGS. By way of comparison: at the end of February, the figure stood at 874.6 billion KGS, and in January — 880 billion KGS.

In other words, in March alone, the volume of deposits increased by 41.9 billion KGS, or almost 4.8%. In February, by contrast, there was a slight decrease compared to January.

The structure of the deposit base at the end of February was as follows:

• deposits from legal entities — 408.3 billion KGS;
• deposits from individuals — 274.5 billion KGS;
• deposits from government bodies — 82.6 billion KGS;
• deposits from non-residents — 99 billion KGS;
• deposits from other financial and credit institutions — 10.2 billion KGS.

The most notable growth at that time was seen in government deposits — up 24.9% since the start of the year. At the same time, deposits from households and businesses declined slightly.

However, March data show a sharp overall increase in the deposit base. Such a surge is usually associated either with large inflows of funds from companies and the state, or with a seasonal increase in liquidity within the banking system.