Regulatory Alerts2024-02-28 | 131343Added · Updated
Rules for the Regulation of Guarantee Funds' Activities
The National Bank of the Kyrgyz Republic establishes economic norms and restrictions for guarantee funds, including a maximum risk limit of 10% per borrower (K1), a minimum paid-up capital requirement (K2), and a minimum own capital ratio of 100% of authorized capital (K2.1). Funds must maintain a total liquidity ratio of at least 45% (K3.1) and a short-term liquidity ratio of at least 35% (K3.2), while limiting guarantee coverage to a maximum of 50% of the client's principal obligations (K4) and maintaining a multiplier coefficient of no more than 2 (K5). The rules also mandate credit information exchange with credit bureaus and define specific terms for clients, guarantees, and financial organizations.