Since the beginning of the year, more than 50 pawnshops have closed in Kyrgyzstan

The pawnshop market in Kyrgyzstan is undergoing a significant “clean-up.” Since the beginning of the year, the Financial Market Regulation and Supervision Service has decided to revoke the licenses of dozens of companies, while simultaneously issuing permits to several new market participants.

The largest wave of license revocations occurred between February 2 and 6. At that time, the Financial Market Regulation and Supervision Service revoked the licenses of more than 40 pawnshops, including Rabiya and Co, Pokrovka, Altyn Magnet, Kopilka, Nur-Finance, NKB Capital, Kepildik, Akcha Mol, Tulpar 55, Akchabar Capital, Gul-Kazyna, Credit Capital, Denezhny, Aventus Finance, ManiMax, Oziris, Hermes, Altyn Kazyna, EuroNur, Eldik Capital, and a number of other companies.

Later, the regulator continued to make similar decisions.

Thus, between February 9 and 13, the licenses of the pawnshops Umut, Altyn Garant, Extra, and Three Sevens KJ were revoked. In addition, the pawnshop Micro Capital closed its representative office in Bishkek.

In the last week of February, February 23-27, licenses to conduct pawnshop activities were also revoked from the following companies:

• Zholuke;
• Grand Asia;
• Antinari;
• Autoplus.

At the same time, despite the reduction in the number of players, the regulator continues to issue new licenses. In mid-February, Tumar Garant and Omega Express received permits to conduct pawnbroking activities.

The departure of pawnshops from the market can be linked to the tightening of capital requirements. The Cabinet of Ministers approved a phased increase in the minimum authorized capital for market participants:

• from January 1, 2025 — at least 3 million KGS;
• from July 1, 2026 — 7 million KGS;
• from July 1, 2027 — 14 million KGS;
• from July 1, 2028 — 20 million KGS.

Such measures, as emphasized by Finnadzor, are aimed at consolidating the market and increasing the financial stability of companies, as well as reducing risks for borrowers. Market participants who are not ready to work under the new requirements and increase their capital will be forced to leave the sector.