The RFBR will become the second participant in deposit auctions on the CFB after the Ministry of Finance

The Russian-Kyrgyz Development Fund announced that on December 23, it will hold an auction among commercial banks in Kyrgyzstan to place free funds in deposits in the national currency. This will make the RDF the second institutional structure after the Ministry of Finance to use the Kyrgyz Stock Exchange's auction mechanism to place liquidity in the banking system.

According to the terms of the auction, the Fund plans to place 100 million KGS, divided into two lots:

• 50 million KGS for a period of 6 months with a starting rate of 10% per annum;
• 50 million KGS for a period of 9 months with a starting rate of 14% per annum.

The auction means that the RFPR has effectively joined the market mechanism of competition among banks for large deposits, which was previously launched by the Ministry of Finance.

As previously reported by Akchabar, in September, the Ministry of Finance launched the country's first-ever cash auctions on the Kyrgyz Stock Exchange, placing mitigation account funds in commercial banks. At that time, the total amount placed was 24 billion KGS, of which 20.3 billion KGS were successfully distributed at market rates.

The launch of deposit auctions was part of the roadmap for the development of the Kyrgyz stock market and was aimed at consolidating the money market, increasing transparency, and forming a single liquidity center.