Methodology for Calculating the Weighted Average Interest Rate on Loans/Financing by Financial-Credit Organizations to Implement the Law of the Kyrgyz Republic 'On Limiting Usurious Activities in the Kyrgyz Republic'

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Date Created: 2026-03-25

Methodology for Calculating the Weighted Average Interest Rate

on Loans/Financing by Financial-Credit Organizations

to Implement the Law of the Kyrgyz Republic 'On Limiting Usurious Activities in the Kyrgyz Republic'

1. This methodology defines the procedure for calculating the weighted average interest rate on loans/financing to establish the maximum permissible level of interest rates/fees for financial-credit organizations (hereinafter – FCOs) in order to implement Article 6 of the Law of the Kyrgyz Republic 'On Limiting Usurious Activities in the Kyrgyz Republic'.

2. To calculate the weighted average interest rate, reporting data on actual interest rates/fees on loan balances in national and foreign currencies as of the end of the quarter, provided by FCOs (commercial banks, microfinance organizations, and credit unions), regulated and licensed by the National Bank of the Kyrgyz Republic (hereinafter – National Bank), are used.

3. In accordance with Article 6 of the Law of the Kyrgyz Republic 'On Limiting Usurious Activities in the Kyrgyz Republic', the maximum permissible level of interest rates/fees is calculated by adding 12 basis points (percentages) to the weighted average interest rate of FCOs, as determined by the National Bank for the corresponding period.

4. The weighted average interest rate to establish the maximum permissible level of interest rates/fees on loans/financing of FCOs is calculated on a semi-annual basis and published on the official website of the National Bank 1 month before the start of the half-year. The weighted average interest rate for the first half-year is calculated based on data as of the end of Q3 of the previous year, published no later than November 30, and applies to the period from January 1 to June 30. The weighted average interest rate for the second half-year is calculated based on data as of the end of Q1 of the current year, published no later than May 31, and applies to the period from July 1 to December 31.

5. The weighted average interest rate/fee on loans/financing of FCOs is calculated as the ratio of the sum of each FCO's weighted average interest rate on loan/financing balances in national and foreign currencies at the end of the reporting quarter, multiplied by their respective loan portfolio balances, to the total volume of FCO loan portfolio balances in national and foreign currencies.

6. The weighted average interest rate to establish the maximum permissible level of interest rates/fees on loans/financing of FCOs is calculated using the following formula:

C = (CkVk+CmVm+Cu*Vu) / (Vk+Vm+Vu),

where

Ck – actual weighted average interest rate on loans/financing of commercial banks in national and foreign currencies at the end of the corresponding quarter;

Cm – actual weighted average interest rate on loans/financing of microfinance organizations in national and foreign currencies at the end of the corresponding quarter;

Cu – actual weighted average interest rate on loans/financing of credit unions in national and foreign currencies at the end of the corresponding quarter;

Vk – volume of loan portfolio of commercial banks in national and foreign currencies at the end of the corresponding quarter;

Vm – volume of loan portfolio of microfinance organizations in national and foreign currencies at the end of the corresponding quarter;

Vu – volume of loan portfolio of credit unions in national and foreign currencies at the end of the corresponding quarter.

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