Rules for Regulating the Activities of Microfinance Organizations in the Kyrgyz Republic

Return to previous page

Print version

Creation date: 2026-03-24

Attention!

Changes introduced by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 29, 2025 No. 2025-P-12/71-3-(NPA) enter into force on April 1, 2026.

Approved

by the Resolution of the Board of the National Bank of the Kyrgyz Republic

of February 19, 2003 No. 4/2

RULES

regulating the activities of microfinance organizations in the territory of the Kyrgyz Republic

(In the edition of the Resolutions of the Board of the National Bank of the KR dated December 27, 2003 No. 36/1, May 26, 2010 No. 36/3, September 29, 2010 No. 75/14, September 14, 2011 No. 52/4, October 31, 2011 No. 62/4, July 11, 2012 No. 29/5, April 24, 2013 No. 13/9, September 25, 2013 No. 35/17, October 23, 2013 No. 39/4, November 27, 2013 No. 45/15, May 30, 2014 No. 24/10, March 11, 2015 No. 16/2, January 20, 2016 No. 4/6, April 11, 2016 No. 17/2, June 15, 2016 No. 25/2, June 15, 2017 No. 2017-P-12/25-5, August 15, 2018 No. 2018-P-33/33-8, January 30, 2019 No. 2019-P-33/4-2, September 28, 2021 No. 2021-P-33/53-8, October 5, 2022 No. 2022-P-33/61-3, December 21, 2022 No. 2022-P-12/81-7, December 8, 2023 No. 2023-P-12/76-1, October 16, 2024 No. 2024-P-12/53-2-(NFKU), October 31, 2024 No. 2024-P-12/58-2-(NPA), January 22, 2025 No. 2025-P-12/2-3-(NFKU), October 23, 2025 No. 2025-P-12/55-3-(NPA), October 23, 2025 No. 2025-P-12/55-4-(NPA), December 29, 2025 No. 2025-P-12/71-3-(NPA)).

1. General Provisions

1.1. These Rules regulate the activities of microfinance organizations licensed and regulated by the National Bank of the Kyrgyz Republic.

(In the edition of the Resolution of the Board of the National Bank of the KR dated January 30, 2019 No. 2019-P-33/4-2)

1.2. The goal of the activities of microfinance organizations (hereinafter - MFO) is to provide the population with accessible microfinance services to assist in overcoming poverty, increasing employment levels, promoting entrepreneurship development, and social mobilization of the population of the Kyrgyz Republic.

At the same time, a microfinance organization has the right to pursue other goals defined in its constituent documents that do not contradict the current legislation of the Kyrgyz Republic.

(In the edition of the Resolutions of the Board of the National Bank of the KR dated October 23, 2013 No. 39/4, January 20, 2016 No. 4/6)

1.3. The National Bank of the Kyrgyz Republic (hereinafter - National Bank), in order to ensure the sustainable development of MFOs and maintain public trust in their activities, establishes economic indicators and requirements mandatory for MFOs to comply with.

(In the edition of the Resolution of the Board of the National Bank of the KR dated January 20, 2016 No. 4/6)

1.4. MFOs may establish higher requirements for economic indicators according to their internal risk management policy, without violating the values required by the regulatory acts of the National Bank of the Kyrgyz Republic.

(In the edition of the Resolution of the Board of the National Bank of the KR dated January 20, 2016 No. 4/6)

1.5. (Lost force in accordance with the Resolution of the Board of the National Bank of the KR dated January 20, 2016 No. 4/6)

1.6. (Lost force in accordance with the Resolution of the Board of the National Bank of the KR dated January 20, 2016 No. 4/6)

1.7. MFOs issue microloans to borrowers via a credit contract in accordance with legislative requirements, including under subsidiary or joint liability of a group of persons.

(In the edition of the Resolutions of the Board of the National Bank of the KR dated October 23, 2013 No. 39/4, January 20, 2016 No. 4/6)

1.8. MFOs must carry out accounting of their operations and prepare financial reporting in accordance with the requirements of the regulatory legal acts of the National Bank.

(In the edition of the Resolution of the Board of the National Bank of the KR dated December 29, 2025 No. 2025-P-12/71-3-(NPA))

1.9. A microfinance organization conducts internal audit to verify the accuracy of accounts and to check and evaluate the adequacy and effectiveness of its internal control system in accordance with the regulatory legal acts of the Kyrgyz Republic. For this purpose, a microfinance company (hereinafter - MFC) is obliged, and a microcredit company (hereinafter - MCC)/microcredit agency (hereinafter - MCA) may create its own internal audit service.

(In the edition of the Resolution of the Board of the National Bank of the KR dated January 20, 2016 No. 4/6)

1.10. Systemically important MFOs are considered those that have systemic significance for the microfinance sector. Criteria for systemic significance are determined by the regulatory legal acts of the National Bank. A special regime of regulation and supervision established by the National Bank applies to systemically important MFOs.

(In the edition of the Resolution of the Board of the National Bank of the KR dated January 20, 2016 No. 4/6)

1.11. For the purposes of these Rules, a wholesale loan is understood as a loan provided to financial-credit organizations for the subsequent provision of microloans, for the purpose of promoting financial services in regions and supporting entrepreneurial activity.

An MFO engaged in wholesale lending is understood as an MFO in which the share of wholesale loans exceeds 70 percent of the loan portfolio.

(In the edition of the Resolution of the Board of the National Bank of the KR dated January 20, 2016 No. 4/6)

2. Regulation of the activities of microfinance companies not accepting deposits

2.1. Microfinance companies do not have the right:

1. to issue loans for the acquisition of securities issued by the MFC itself, nor to accept them as collateral;

2. to issue guarantees;

3. to issue guarantees in an amount that, in aggregate with the microloan (leasing), exceeds the indicator of the maximum loan size for one borrower;

4. to carry out other banking operations and transactions defined by the legislation of the Kyrgyz Republic, except for operations and transactions provided for by the Law "On Microfinance Organizations in the Kyrgyz Republic";

5. to carry out professional activities in the securities market;

6. to issue letters of credit, carry out transactions with precious metals, and manage property on trust.

Microfinance companies must have an internal credit policy approved by the Board of Directors. This internal credit policy must define the main region of activity, as well as the maximum total size of the microloan issued to the same person, but in an amount not exceeding three percent of the minimum size of the authorized capital established by the National Bank for a newly created MFC (not attracting term deposits from individuals and legal entities). This restriction does not apply to loans issued as part of the implementation of other property of the MFC transformed from a commercial bank.

For MFCs engaged in wholesale lending, the maximum total size of the microloan issued to the same person must not exceed 20 percent of the size of the own capital.

(In the edition of the Resolutions of the Board of the National Bank of the KR dated October 23, 2013 No. 39/4, November 27, 2013 No. 45/15, March 11, 2015 No. 16/2, January 20, 2016 No. 4/6, December 29, 2025 No. 2025-P-12/71-3-(NPA))

2.1.1. (Lost force in accordance with the Resolution of the Board of the National Bank of the KR dated October 5, 2022 No. 2022-P-33/61-3)

2.1.2. Microfinance companies not accepting deposits are obliged to comply with economic indicators and restrictions established by the National Bank, including:

• minimum size of paid-in authorized capital;
• indicator of minimum own capital;
• maximum total size of microloans;
• maximum total size of investments in microfinance organizations, leasing companies, and banks;
• maximum total size of funds borrowed from founders (shareholders) - individuals;
• maximum total size of funds borrowed from founders (shareholders) - legal entities;
• maximum size of investments in property (fixed assets);
• maximum size of issuance of debt securities.

(In the edition of the Resolution of the Board of the National Bank of the KR dated December 29, 2025 No. 2025-P-12/71-3-(NPA))

2.2. (Lost force in accordance with the Resolution of the Board of the National Bank of the KR dated October 5, 2022 No. 2022-P-33/61-3)

2.3. Minimum size of own capital.

2.3.1. The calculation of the own capital of an MFC (as of the assessment date) is produced based on the following indicators:

• ordinary shares;
• preferred shares;
• capital contributed in excess of nominal value;
• additional capital contributed by individuals and legal entities;
• reserves for future needs;
• perpetual subordinated debt;

Perpetual subordinated debt is understood as an unsecured obligation that has no maturity dates, must not be repaid early at the request of creditors, and claims for which in the event of liquidation of the MFC are repaid last after satisfying all claims from creditors, but before settlements with shareholders of the MFC. The MFC must at all times have the full right to cancel the payment of interest payments on subordinated debt. Perpetual subordinated debt may be repaid at the initiative of the MFC only after a minimum term of not less than five years, after receiving prior permission from the National Bank, as well as if the repayment does not lead to a violation of indicators.

• undistributed profit/losses of previous years;
• losses of the current year;
• minus investments in capital (shares, equity participation) of other microfinance organizations, leasing companies, and banks.

In this case, investments in capital (shares, equity participation) are understood as the balance of actually invested funds in the capital of microfinance organizations, leasing companies, and banks.

(In the edition of the Resolution of the Board of the National Bank of the KR dated December 29, 2025 No. 2025-P-12/71-3-(NPA))

2.3.2. Indicator of minimum size of own capital for MFCs not accepting deposits.

1. The value of the indicator of minimum size of own capital must be maintained at a level of not less than 100% of the minimum size of authorized capital.

2. The indicator of minimum size of own capital is determined by the formula:

SK / UK * 100%, where:

SK - own capital of the MFC as of the assessment date (in accordance with paragraph 2.3.1 of these Rules);

UK - minimum authorized capital established by the Resolution of the Board of the National Bank "On the minimum size of authorized capital of non-bank financial-credit organizations" dated October 5, 2022 No. 2022-P-33/61-2-(NFKU) for newly opened and operating MFCs not accepting deposits, respectively.

(In the edition of the Resolution of the Board of the National Bank of the KR dated January 30, 2019 No. 2019-P-33/4-2, December 29, 2025 No. 2025-P-12/71-3-(NPA))

2.4. Maximum size of investments in other organizations.

2.4.1. MFCs have the right to make investments only in microfinance organizations, leasing companies, and banks.

(In the edition of the Resolutions of the Board of the National Bank of the KR dated September 29, 2010 No. 75/14, March 11, 2015 No. 16/2, December 29, 2025 No. 2025-P-12/71-3-(NPA))

2.4.2. The maximum total size of investments of an MFC (investments in capital (shares, equity participation), debt obligations, financial investments in leasing and factoring, loans, and any other similar financial investments) in microfinance organizations, leasing companies, and banks must not exceed 30% of the size of the own capital of the MFC and is determined by the formula:

SI / SK * 100% ≤ 30%, where:

SI

total size of MFC investments as of the assessment date;

SK

own capital of the MFC as of the assessment date (see sub-item 2.3.1 of paragraph 2.3).

When calculating this indicator, loans provided to microfinance organizations, leasing companies, and banks in the capital (shares, equity participation) of which MFC investments are placed are taken into account.

(In the edition of the Resolution of the Board of the National Bank of the KR dated March 11, 2015 No. 16/2)

2.4-1. MFCs not accepting deposits have the right to borrow funds from legal and physical persons - founders (shareholders) of the MFC and legal entities.

The interest rate on funds borrowed from founders (shareholders) must not exceed the key rate of the National Bank by more than 5 percentage points.

(In the edition of the Resolution of the Board of the National Bank of the KR dated January 30, 2019 No. 2019-P-33/4-2)

2.4.-2. (Lost force in accordance with the Resolution of the Board of the National Bank of the KR dated January 30, 2019 No. 2019-P-33/4-2)

2.4.-3. (Lost force in accordance with the Resolution of the Board of the National Bank of the KR dated January 30, 2019 No. 2019-P-33/4-2)

2.4.-4. Maximum size of investments in property (fixed assets) for MFCs not accepting deposits.

The maximum size of investments in property (fixed assets) must not exceed 80 percent of the size of the own capital of the MFC.

Property is understood as property (including construction/installation real estate, vehicles, etc.) that belongs to the MFC or is at the disposal of the MFC under a lease agreement and/or is used/will be used as a fixed asset.

(In the edition of the Resolution of the Board of the National Bank of the KR dated October 16, 2024 No. 2024-P-12/53-2-(NFKU))

2.4.-5. MFCs have the right to issue shares and debt securities (bonds and promissory notes), with the exception of international bonds, within the limits established by the National Bank and in accordance with the legislation of the Kyrgyz Republic.

This restriction, as well as its value, may be set individually for a specific MFC by decision of the Supervisory Committee of the National Bank.

The issuance of bonds to repay loans and borrowings is not allowed, as well as in the presence of overdue debt on loans and borrowings during the last year before the decision on the issuance of bonds is made.

The payment of shares and other securities of the MFC with promissory notes, as well as with monetary funds, securities, other things or property rights, or other rights having a monetary valuation belonging to physical and legal entities included in the sanction lists of physical and legal entities, groups, and organizations, regarding which there is information about their participation in terrorist or extremist activities and the spread of weapons of mass destruction (Consolidated Sanctions List of the Kyrgyz Republic and Consolidated Sanctions List of the UN Security Council) is prohibited.

(In the edition of the Resolutions of the Board of the National Bank of the KR dated October 23, 2025 No. 2025-P-12/55-4-(NPA), December 29, 2025 No. 2025-P-12/71-3-(NPA))

2.5. Procedure for submitting information to the National Bank.

2.5.1. Quarterly, no later than the 20th day of the month following the reporting period, MFCs must submit to the National Bank:

a) (Lost force in accordance with the Resolution of the Board of the National Bank of the KR dated December 27, 2003 No. 36/1)

b) information:

• on investments in capital (shares, equity participation) of other microfinance organizations, leasing companies, and banks, indicating the list and size of investments in each of them;

• on the size of investments of the MFC (investments in capital (shares, equity participation), debt obligations, financial investments in leasing and factoring, loans, and any other similar financial investments) in other microfinance organizations, leasing companies, and banks, indicating the list, size of investments in each of them, and the calculation of the indicator given in sub-item 2.4.2 of paragraph 2.4;

• on the size of funds borrowed from founders (shareholders) - individuals, indicating the list of founders (shareholders) - individuals, conditions of borrowing per founder (shareholder) (size, term, rate, currency of the loan, etc.)

• on the size of funds borrowed from founders (shareholders) - legal entities, indicating the list of founders (shareholders) - legal entities, conditions of borrowing per founder (shareholder)-legal entities (size, term, rate, currency of the loan, etc.).

(In the edition of the Resolutions of the Board of the National Bank of the KR dated May 26, 2010 No. 36/3, March 11, 2015 No. 16/2, January 20, 2016 No. 4/6, September 28, 2021 No. 2021-P-33/53-8, December 29, 2025 No. 2025-P-12/71-3-(NPA))

2.5.2. Forms of financial reporting and information on investments, borrowings from founders, must be signed by the Chairman of the Board of the MFC, or another person officially having the right of first signature, as well as by the person responsible for the preparation and submission of information.

(In the edition of the Resolution of the Board of the National Bank of the KR dated March 11, 2015 No. 16/2)

2.5.3. Annually, after conducting an independent external audit by independent external auditors, the MFC is obliged to submit one copy of the full report of the external auditor without changes, including the management letter, to the National Bank within 30 days from the moment of submission of the report by the external auditor to the microfinance company.

2.5.4. Upon discovery of facts of non-compliance by the MFC with the requirements of the National Bank imposed on their activities, non-submission of information, as well as untimely submission or submission of unreliable information, the National Bank has the right to apply impact measures to them in accordance with the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the laws of the Kyrgyz Republic "On Banks and Banking Activity", "On Microfinance Organizations in the Kyrgyz Republic", and regulatory legal acts of the National Bank.

(In the edition of the Resolution of the Board of the National Bank of the KR dated December 21, 2022 No. 2022-P-12/81-7)

2.5.5. MFCs must submit a copy of quarterly publications in the media of their financial reporting to the National Bank within 5 working days from the date of publication.

2.6. MFCs must conduct office work in the state language and, if necessary, in the official language. All internal documents, including contracts, agreements with counterparties, must be drawn up in the state language and, if necessary, in the official language. At the same time, the drawing up of contracts with counterparties in the state and official languages and in foreign languages having equal legal force is allowed. Drawing up contracts in a foreign language is allowed only in the presence of a certified translation into the state or official language in the established manner.

(In the edition of the Resolution of the Board of the National Bank of the KR dated December 8, 2023 No. 2023-P-12/76-1)

2.7. To calculate the amount of dividends, the MFC must use the smallest of the net profit values calculated in accordance with International Financial Reporting Standards (hereinafter - IFRS) and the requirements of the National Bank.

In the event of the existence of one of the following threats to the stability of the MFC's activities, the National Bank may restrict the payment of dividends by the MFC if:

1. this will lead to a violation of economic indicators and restrictions established by the National Bank;

2. the MFC does not comply with economic indicators and restrictions established by the National Bank;

3. in the presence of losses of previous years or for the reporting year;

4. a directive/requirement of the National Bank to accrue a reserve to cover potential losses and losses, according to the requirements of the National Bank, has not been fulfilled;

5. there is an unfulfilled requirement of the National Bank issued as an impact measure.

(In the edition of the Resolutions of the Board of the National Bank of the KR dated January 30, 2019 No. 2019-P-33/4-2, December 29, 2025 No. 2025-P-12/71-3-(NPA))

3. Requirements for the activities of microfinance companies applying for a license to accept deposits

(Lost force

in accordance with the Resolution of the Board of the National Bank of the KR dated January 20, 2016 No. 4/6)

4. Regulation of the activities of microfinance companies accepting deposits

4.1. Microfinance companies do not have the right:

1. to issue loans for the acquisition of securities issued by the MFC itself, nor to accept them as collateral;

2. to issue guarantees;

3. to issue guarantees in an amount that, in aggregate with the microloan (leasing), exceeds the indicator of the maximum loan size for one borrower;

4. to carry out other banking operations and transactions defined by the legislation of the Kyrgyz Republic, except for operations and transactions provided for by the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic";

5. to carry out professional activities in the securities market;

6. to issue letters of credit, carry out transactions with precious metals, and manage property on trust.

(In the edition of the Resolutions of the Board of the National Bank of the KR dated October 23, 2013 No. 39/4, January 22, 2025 No. 2025-P-12/2-3-(NFKU))

4.2. Microfinance companies having the right to carry out deposit acceptance operations are obliged to comply with economic indicators and restrictions established by the National Bank, including:

• minimum size of paid-in authorized capital;
• indicator of minimum own capital;
• adequacy (sufficiency) of own capital;
• adequacy (sufficiency) of total capital;
• maximum risk size for one borrower;
• liquidity indicator;
• indicator of restriction of risk on deposit repayment;
• maximum risk size for operations with affiliated and related persons of the MFC;
• maximum total debt of one MFC employee for loans provided by the company;
• maximum total size of investments in microfinance organizations, leasing companies, and banks;
• size of investments in non-state debt securities;
• maximum total size of funds borrowed from founders (shareholders) - individuals;
• maximum total size of funds borrowed from founders (shareholders) - legal entities;
• maximum size of investments in property (fixed assets);
• maximum size of issuance of debt securities.

(In the edition of the Resolutions of the Board of the National Bank of the KR dated March 11, 2015 No. 16/2, June 15, 2017 No. 2017-P-12/25-5, January 30, 2019 No. 2019-P-33/4-2, October 16, 2024 No. 2024-P-12/53-2-(NFKU), December 29, 2025 No. 2025-P-12/71-3-(NPA))

4.2.-2. Microfinance companies have the right to attract only term deposits from individuals and legal entities for a term of not less than 30 days.

(In the edition of the Resolution of the Board of the National Bank of the KR dated October 23, 2013 No. 39/4)

5. Economic indicators and calculation procedure for microfinance companies carrying out deposit acceptance operations

5.1. (Lost force in accordance with the Resolution of the Board of the National Bank of the KR dated October 5, 2022 No. 2022-P-33/61-3)

5.2. Indicator of minimum own capital.

5.2.1. The value of the indicator of minimum own capital M1 must be maintained at a level of not less than 100% of the minimum size of authorized capital.

(In the edition of the Resolution of the Board of the National Bank of the KR dated January 30, 2019 No. 2019-P-33/4-2)

5.2.2. The indicator of minimum own capital of the MFC is determined by the formula:

M1 = SK / UK * 100%, where:

SK

• own capital of the MFC as of the assessment date (see sub-item 2.3.1 of paragraph 2.3);

UK

• minimum authorized capital established by the Resolution of the Board of the National Bank "On the minimum size of authorized capital of non-bank financial-credit organizations" dated October 5, 2022 No. 2022-P-33/61-2-(NFKU) for newly opened and operating MFCs accepting deposits, respectively.

(In the edition of the Resolutions of the Board of the National Bank of the KR dated October 5, 2022 No. 2022-P-33/61-3, December 29, 2025 No. 2025-P-12/71-3-(NPA))

5.3. Adequacy (sufficiency) of own capital.

5.3.1. The value of the indicator of adequacy (sufficiency) of own capital M2 must be maintained at a level of not less than 8%.

(In the edition of the Resolution of the Board of the National Bank of the KR dated May 26, 2010 No. 36/3)

5.3.2. The indicator of adequacy of own capital of the MFC is determined by the formula:

M2 = SK / SA * 100%, where:

SK

• own capital of the MFC as of the assessment date (in accordance with paragraph 2.3.1 of these Rules);

SA

• sum of balance sheet assets as of the assessment date minus the sum of deposits placed in commercial banks as collateral in the amount of attracted funds in national currency in