Resolution of the Board

of the National Bank

of the Kyrgyz Republic

of 24 September 2026

No. 2026-П-12/47-4-(НПА)

On Amendments

to the normative legal acts of the National Bank of the Kyrgyz Republic

on Islamic principles of banking and financing

In accordance with Articles 5, 9 and 64 of the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

• 1. To introduce amendments to the following resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

  • 1) "On approval of the Regulation "On operations carried out in accordance with Islamic principles of banking and financing" of 23 September 2009 No. 38/8;

  • 2) "On approval of the Regulation "On operations carried out by microfinance organizations and credit unions in accordance with Islamic principles of banking and financing" of 26 October 2011 No. 60/8.

• 2. To the Legal Department:

  • from the day of receipt of the relevant documents, within 3 (three) working days, to publish this resolution on the official website of the National Bank of the Kyrgyz Republic;

  • after official publication, to send this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.

• 3. This resolution enters into force on 13 December 2026.

• 4. To the Supervision Methodology Department, within 3 (three) working days from the day of official publication of this resolution, to bring it to the attention of commercial banks, microfinance organizations, credit unions, the Association of Legal Entities "Union of Banks of Kyrgyzstan", the Association of Legal Entities "Association of Microfinance Organizations", OJSC "Financial Company of Credit Unions", the Association of Legal Entities "National Association of Credit Unions and Cooperatives".

• 5. To the "Secretariat of the Board" Division, within 3 (three) working days from the day of adoption of this resolution, to bring it to the attention of structural subdivisions, regional departments and the Representative Office of the National Bank of the Kyrgyz Republic in Batken Oblast.

• 6. To entrust control over the execution of this resolution to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Supervision Methodology Department.

Acting Chairman A. Kozubekov

Annex
to the resolution of the Board of the National Bank of the Kyrgyz Republic of 24 September 2026 No. 2026-П-12/47-4-(НПА)

Amendments to the normative legal acts

of the National Bank of the Kyrgyz Republic

on Islamic principles of banking and financing

• 1. To introduce to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On operations carried out in accordance with Islamic principles of banking and financing" of 23 September 2009 No. 38/8 the following amendments:

in the Regulation "On operations carried out in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution:

• 1) paragraph 2.2.1. shall be supplemented with a paragraph of the following content:

"A sharia/musharaka contract may also be concluded in respect of property jointly acquired by the partners.";

• 2) paragraph 2.2.2 shall be set out in the following wording:

"2.2.2. A sharia/musharaka contract is classified into two main categories:

    - 1) association of participants without formation of a legal entity;

    - 2) association of participants with formation of a legal entity, including partnership companies and/or legal entities created in accordance with the legislation of the Kyrgyz Republic.

Unless otherwise follows from the subject of the contract, the sharia/musharaka contract applies both to associations of participants without formation of a legal entity and to associations with formation of a legal entity.

A diminishing musharaka contract is a form of partnership based on a sharia/musharaka contract in which one of the partners undertakes to gradually buy out the share of the other partner in the partnership or in the property until full transfer of ownership right to him.

The obligation to buy the share of the other partner in the partnership or in the property must be independent of the sharia/musharaka contract. In addition, the diminishing musharaka contract must be independent of the sharia/musharaka contract. It is not allowed for one contract to be concluded subject to the conclusion of another contract.

The price at which the property will be bought out is determined in the obligation to purchase the partner's share.

A diminishing musharaka contract may be concluded without prior conclusion of a sharia/musharaka contract.";

• 3) chapter 2.2. shall be supplemented with paragraph 2.2.2.-1 of the following content:

"2.2.2-1. The partner undertakes to use the property for purposes not contradicting the legislation of the Kyrgyz Republic and the requirements of sharia standards, and also to ensure its preservation during use.

The bank and the partner bear joint responsibility for any damage caused to the property, as a result of which the quality of the property has deteriorated, according to the shares at a specific point in time.

Property under sharia/musharaka and diminishing musharaka contracts must be insured in cases provided for by the legislation of the Kyrgyz Republic in the field of insurance.

The partners bear expenses for insurance and current maintenance of the property in proportion to their shares. It is not allowed to impose the above-mentioned expenses on one of the partners, even on the basis that the property will in the future pass to him.";

• 4) the first paragraph of paragraph 2.2.3. after the words "from the company's capital" shall be supplemented with the words "or joint property.";

• 5) chapter 2.2 shall be supplemented with paragraphs 2.2.36, 2.2.37, 2.2.38, 2.2.39, 2.2.40, 2.2.41 of the following content:

"2.2.36. The essential terms of a diminishing musharaka contract are:

    - a) the name, as well as a description sufficient for identification of the subject of the contract;

    - b) the rights and obligations of the parties related to the acquisition and transfer of the subject of the contract;

    - c) the amount, procedure, conditions and terms for making payments.

The diminishing musharaka contract is concluded in written form or in the form of a digital document.

The diminishing musharaka contract is subject to notarization and state registration in cases provided for by the legislation of the Kyrgyz Republic.

2.2.37. The value of the other partner's share in the partnership or property may be divided into certain shares by agreement of the parties. Accordingly, payments made by the partner may be divided into certain shares and made within the terms agreed by the parties until he buys out all shares in the partnership or property and becomes the sole owner.

2.2.38. The bank has the right to timely receipt of payments according to the terms stipulated in the contract. The diminishing musharaka contract may provide for such a condition according to which a partner who unjustifiably delays payment pays a certain amount or an additional share of the due payment amount. The payment of such an amount in excess of the due payments is directed to charitable purposes according to the bank's internal policy approved by the Shariah Council.

2.2.39. For the use of the bank's share of property, the partner pays rent, the amount of which decreases proportionally to the bank's share acquired by the partner.

The partner may conclude a property lease agreement with a third party with the bank's consent, taking into account the requirements of the legislation of the Kyrgyz Republic and Shariah standards.

2.2.40. Ownership of the bank's share of property under the diminishing musharaka contract may be transferred to the partner after the buyout of 20% or more of the property share.

Property under the diminishing musharaka contract may serve as collateral in accordance with the legislation of the Kyrgyz Republic.

2.2.41. The diminishing musharaka contract may be terminated:

    - a) by mutual consent of the partners;

    - b) upon expiration of the contract term;

    - c) in the event of destruction/destruction (loss) of the subject of the contract and the impossibility of its further use. In this case, the remaining payments are not made, and losses and insurance compensation are distributed between the partners according to their shares;

    - d) under other conditions provided for by the legislation of the Kyrgyz Republic.".

• 2. To introduce the following changes to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On operations carried out by microfinance organizations and credit unions in accordance with Islamic principles of banking and financing" dated 26 October 2011 No. 60/8:

in the Regulation "On operations carried out by microfinance organizations and credit unions in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution:

• 1) in the state language, in paragraphs 1-3, 6, 13, 15-17, 21, 24, 36, 53-64, 65-68, 76, 80, 81, 94, 112, 113-1, 117-121, 148-149, 153, replace the abbreviation "ФКМ" with the abbreviation "ФКУ" in the corresponding cases and numbers;

• 2) supplement paragraph 21 with a paragraph of the following content:

"The sharika/musharaka contract may also be concluded in relation to property jointly acquired by the partners.";

• 3) restate paragraph 22 as follows:

«22. The sharik/musharakah contract is classified into two main categories:

    - 1) an association of participants without the formation of a legal entity;

    - 2) an association of participants with the formation of a legal entity, including partnership associations and/or legal entities established in accordance with the legislation of the Kyrgyz Republic.

Unless otherwise follows from the subject matter of the contract, the sharik/musharakah contract applies both to associations of participants without the formation of a legal entity and to associations with the formation of a legal entity.

The diminishing musharakah contract – a form of partnership based on a sharik/musharakah contract, in which one of the partners undertakes to gradually buy out the share of the other partner in the partnership or in the property until full transfer of ownership to him.

The obligation to buy out the share of the other partner in the partnership or in the property must be independent of the sharik/musharakah contract. Furthermore, the diminishing musharakah contract must be independent of the sharik/musharakah contract. It is not permitted for one contract to be concluded on the condition of concluding another contract.

The price at which the property will be bought out is determined in the obligation to purchase the partner's share.

The diminishing musharakah contract may be concluded without the prior conclusion of a sharik/musharakah contract.»;

• 4) supplement Chapter 2 with paragraph 22-1 of the following content:

«22-1. The partner undertakes to use the property for purposes that do not contradict the legislation of the Kyrgyz Republic and the requirements of Sharia standards, as well as to ensure its preservation during use.

The FKO and the partner bear joint responsibility for any damage caused to the property, as a result of which the quality of the property deteriorated, according to the shares at a certain point in time.

The property under sharik/musharakah and diminishing musharakah contracts must be insured in cases provided for by the legislation of the Kyrgyz Republic in the field of insurance.

The partners bear the costs of insurance and current maintenance of the property in proportion to their shares. It is not permitted to impose the above costs on one of the partners, even on the basis that the property will pass to him in the future.»;

• 5) reword the first paragraph of paragraph 23 as follows:

«23. The general rules of the sharik/musharakah contract apply to the diminishing musharakah contract, and it is not permitted to include in the diminishing musharakah contract any provision that gives any party the right to withdraw its share from the capital of the company or joint property.»;

• 6) supplement Chapter 2 with paragraphs 52-3, 52-4, 52-5, 52-6, 52-7, 52-8 of the following content:

«52-3. The essential conditions of the diminishing musharakah contract are:

    - a) the name, as well as a description sufficient for identification of the subject matter of the contract;

    - b) the rights and obligations of the parties related to the acquisition and transfer of the subject matter of the contract;

    - c) the amount, procedure, conditions and terms of making payments.

The diminishing musharakah contract is concluded in writing or in the form of a digital document.

The diminishing musharakah contract is subject to notarization and state registration in cases provided for by the legislation of the Kyrgyz Republic.

52-4. The value of the share of the other partner in the partnership or property may be divided into certain shares by agreement of the parties. Accordingly, the payments made by the partner may be divided into certain shares and made within the terms agreed by the parties, until he buys out all the shares in the partnership or in the property and becomes the sole owner.

52-5. The FKO has the right to timely receipt of payments in accordance with the terms stipulated in the contract. The diminishing musharakah contract may provide for such a condition, according to which a partner who unjustifiably delays payment pays a certain amount or an additional share of the due amount of payment. The payment of such an amount in excess of the due payments is directed to charitable purposes in accordance with the internal policy of the FKO approved by the Sharia Board.

52-6. For the use of the FKO's share of the property, the partner pays rent, the amount of which decreases in proportion to the FKO's share acquired by the partner.

The partner may conclude a property lease agreement with a third party with the consent of the FKO, taking into account the requirements of the legislation of the Kyrgyz Republic and Sharia standards.

52-7. The right of ownership to the FKO's share of the property under the diminishing musharakah contract may be transferred to the partner after buying out 20% or more of the share of the property.

The property under the diminishing musharakah contract may serve as collateral in accordance with the legislation of the Kyrgyz Republic.

52-8. The diminishing musharakah contract may be terminated:

    - a) by mutual consent of the partners;

    - b) upon expiration of the term of the contract;

    - c) in case of destruction/annihilation (loss) of the subject matter of the contract and the impossibility of its further use. In this case, the remaining payments are not made, and losses and insurance compensation are distributed between the partners according to their shares;

    - d) under other conditions provided for by the legislation of the Kyrgyz Republic.»;

• 7) in Chapter 5:

  • exclude the word «хасан» from the title of the chapter;

  • in paragraphs 112, 113, 113-1 exclude the words «хасан»;

  • reword paragraph 114 as follows:

«114. Funds attracted on the terms of the qard contract form the resource base of the FKO and are considered as demand deposits.

Under the terms of the qard contract, the client provides the FKO with funds on an interest-free basis, with the client having the possibility of freely disposing of them, while the FKO in turn may use part of the attracted resources in accordance with its investment policy.

In individual cases, the FKO has the right to provide financing to the client on the terms of the qard contract.».