President Sadyr Japarov has signed the Law "On Amending Certain Legislative Acts of the Kyrgyz Republic on Bringing them in Line with Banking Legislation." The law was adopted by the Jogorku Kenesh on March 14, 2024.
The aim of this law is to align legislative acts with the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic" and the Law "On Banks and Banking Activities."
The law includes provisions such as amending the Civil Code to clarify that providing interest-free loans from one individual to another does not constitute professional lending activity.
Furthermore, the law exempts individuals from penalties for not registering accounts and deposits held outside Kyrgyzstan, and sets a fine of 30 calculation indicators instead.
In addition, the law on microfinance organizations in the Kyrgyz Republic establishes regulations allowing only microfinance organizations operating in accordance with Islamic banking and financing principles to use the term "Islamic" in their business names.
Microfinance institutions are also required to promptly provide reports, documents, and any requested information to the National Bank. Disputes arising from contracts must be resolved according to Kyrgyz legislation, including through pre-trial dispute resolution.
Failure to comply with National Bank requirements may result in the Bank publicly stating that information provided by the microfinance institution is incorrect or misleading, with corresponding legal actions taken.
