Regulatory Alerts2021-12-29 | 88414Procedure for Assigning Non-accrual Status to Interest Income
The National Bank of the Kyrgyz Republic issued this regulation to establish the criteria and procedures for commercial banks and other regulated financial institutions to classify loans as non-accrual when interest income recognition is unlikely. The document mandates that institutions must stop accruing interest on loans with payments overdue by 90 days or more, create 100% reserves for such accrued interest, and apply strict cash-basis recognition rules until principal arrears are fully settled. Furthermore, it defines the rigorous conditions under which a loan can be returned to accrual status, requiring full repayment of past-due amounts and a high probability of future performance based on borrower analysis.
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