Published
12/22/2025, 11:56The construction industry has proven to be the most vulnerable sector of the Kyrgyz economy in terms of credit discipline. As of October 1, the volume of overdue debt of construction companies on bank loans and borrowings exceeded 5 billion KGS, according to official data.
The total amount of overdue debt of businesses in various sectors of the economy as of October 1 was estimated at 7 million 694.8 million KGS. Of this amount, 2.4 billion KGS are overdue debts received within the country, 4.65 billion KGS are unpaid to Russian creditors, 13.45 million KGS are owed to Kazakh creditors, and another 624.3 million KGS are owed to creditors from countries outside the CIS.
Compared to other industries, construction accounts for the largest concentration of problem assets in the banking system, 65.7% of the total volume. Moreover, the overwhelming majority of overdue debts are related to external financing. More than 4.6 billion KGS of debt is accounted for by loans from CIS countries, primarily Russia. Domestic liabilities account for a significantly smaller share of non-performing debt.
Against this backdrop, other sectors of the economy are demonstrating more stable payment discipline, even despite the high capital intensity of certain areas. As a result, it is construction that is setting the tone for the discussion of credit portfolio quality today.
The concentration of problem debts in construction may lead to a more cautious lending policy by banks in the future.
