Despite stable macro-financial indicators and sufficient capitalization of banks, the level of problem loans in Kyrgyzstan remains a concern. This is stated in the final statement of the staff of the International Monetary Fund (IMF) Article IV advisory mission, which completed its work in the country in 2025.

According to experts, the share of problem loans in the banking system exceeds 10% of the total volume, which may indicate persistent structural vulnerabilities in the financial sector.

“Banks are well capitalized and have ample liquidity, but the continued high level of NPLs underscores the importance of proactive supervision and macroprudential measures,” the mission said in a statement.

Of additional concern to analysts is the rapid growth in consumer credit despite continued high interest rates. This increases the burden on households and increases the potential risks for banks in case of changes in the macroeconomic environment.

As preventive measures, the IMF recommends the introduction of countercyclical capital buffers, restrictions on the ratio of credit to the value of collateral, as well as tightening liquidity requirements. These steps, according to experts, will reduce systemic risks and increase banks' resilience to potential external and internal shocks.

In addition, the statement emphasizes the need to modernize capital markets legislation and clearly delineate the functions of key infrastructure participants - depositories, custodians, registrars and settlement agents - to help boost financial market development.