Regulatory Alerts2012-05-18 | 82166On Requirements for Banks and Other Financial-Credit Organizations Regulated by the National Bank of the Kyrgyz Republic When Granting Loans to Individual Clients
The National Bank of the Kyrgyz Republic issued a ruling to protect consumer rights by capping penalty interest rates on loans to individuals at the original contract rate and limiting total penalties to 20% of the loan amount. This regulation applies to all commercial banks, microfinance organizations, credit unions, and the FCFS JSC, mandating these limits be explicitly stated in credit contracts. The ruling entered into force 15 days after its official publication and requires dissemination to relevant financial institutions and submission to the Ministry of Justice.
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