Published
08/20/2025, 16:51The microfinance company Salym Finance has breached the terms of a loan agreement with a foreign financial institution, as evidenced by the company's documents for 2024. The breach relates to a loan of 46.3 million KGS, which may formally be called in for early repayment.
The company is obliged to comply with financial conditions, including maintaining sufficient capital, ensuring stability and timely fulfilment of obligations, and others. As a result, the microfinance company was unable to meet the capital adequacy requirement, which led to violations of the loan agreement with a foreign financial institution (author's note — the documents do not specify who was the lender for this loan).
Despite the breach, negotiations with the lender allowed the issue to be resolved and early repayment of the loan to be avoided. At the same time, the company's overall external financing decreased from 331.1 million KGS in 2023 to 48.5 million KGS in 2024. It remains unclear whether this is related to a breach of loan terms, repayment of obligations or a strategic decision by Salym Finance to abandon foreign sources of capital.
The company's total liabilities to creditors also decreased to 432.2 million KGS, compared to 700.5 million KGS a year earlier. The amount of loans received from local financial institutions decreased threefold to 58.1 million KGS. Thus, local commercial banks were the main creditors of Salym Finance at the end of 2024. They accounted for more than 75% of all the company's loans, or 325.6 million KGS.
Due to the reduction in external financing, Salym Finance's debt burden on servicing foreign loans decreased. In 2024, the company allocated 2.1 million KGS for their repayment, compared to 13.5 million a year earlier.
