The credit boom in Kyrgyzstan has slowed down. Why?

At the start of 2026, the growth rate of bank lending in Kyrgyzstan fell sharply, signalling a possible cooling of domestic demand.

In January–February, the volume of new loans increased by just 4.1% year-on-year. By comparison, in 2022–2025, average monthly growth reached around 37%, according to analysts at the Eurasian Development Bank.

A key factor was the decline in trade lending — this segment has been contracting for the sixth consecutive month. In the first two months of the year, the volume of loans issued to the trade sector was 34.7% lower than last year’s level.

It should be noted that since 28 October 2025, the National Bank of the Kyrgyz Republic’s base rate has gradually begun to rise, increasing during this period from 9.25% to 12%. This indicates that lending in the country has become more expensive, which may be one of the reasons for the slowdown in the credit boom.

The slowdown in consumer lending has exerted additional pressure. Whereas it previously grew at triple-digit rates (124.3%), growth has now fallen to 27%.

At the same time, analysts believe that investment will be the main driver of economic growth in 2026. According to forecasts, Kyrgyzstan’s GDP could increase by 9.3% by the end of the year, despite the slowdown in lending activity.