This document aims to improve the management of budget resources and enhance the transparency of the relevant procedures. Temporarily free funds will be placed by the authorized state body responsible for budget forecasting and execution, through deposits in commercial banks.
Auction for the placement of funds will be conducted on the platform of the Closed Joint Stock Company "Kyrgyz Stock Exchange." Auction participants, namely banks, will need to submit applications indicating the amount and interest rate; the winner will be determined based on the highest bid.
After placing the funds in the Unified Treasury Account, a balance of at least one month's salary fund from the republican budget must be maintained.
The authorized body is required to inform the National Bank in advance about the upcoming placements, specifying the volumes to account for possible impacts on liquidity and the currency market.
To diversify, a restriction has been established: the volume placed in one commercial bank should not exceed 50% of the total volume of placed funds.
Requirements for Participating Banks
Only commercial banks registered in Kyrgyzstan that meet the minimum requirements are allowed to participate in the auction: possession of a license from the National Bank of Kyrgyzstan (NBKR), profitability over the last two years, a positive auditor's opinion, no overdue obligations to the state budget and the Social Fund, as well as no legal disputes with the NBKR and temporary administration.
Deposit Conditions
Deposit terms range from 1 to 12 months but cannot exceed the end of the budget year. Interest is accrued on a simple interest basis, with payments made monthly (for deposits of up to one month — at the end of the term). There is also a provision for early return of the amount (or part of it) upon written request from the authorized body.
Interest income from placements must be transferred to a special account of the authorized body in the Unified Treasury Account.
With the adoption of this resolution, previous documents regulating the placement of temporarily free funds in commercial banks lose their force, including Resolutions No. 135 dated March 11, 2022, No. 704 dated December 22, 2023, and No. 41 dated January 27, 2025.
The resolution comes into force seven days after its official publication. It was published in the newspaper "Erkin Too" on December 30, 2025, No. 103.
Procedure
| Appendix | ||
| (to the resolution of the Cabinet of Ministers of the Kyrgyz Republic dated December 26, 2025, No. 839) |
PROCEDURE
for placing temporarily free funds from the budgets of the budget system of the Kyrgyz Republic
Chapter 1. General Provisions
This procedure describes the processes and conditions under which the authorized state body for budget forecasting and execution (hereinafter - the authorized body) places temporarily free funds from budgets in commercial banks.
The following terms and definitions are used in this procedure:
1) Unified Treasury Account - a centralized account of the authorized body, where budget funds are accumulated and cash execution operations of the budget are reflected;
2) Deposit - the sum of money placed by the authorized body in a commercial bank for a specified term;
3) Placement Agreement - an agreement between the authorized body and the commercial bank that defines the conditions for placing deposits.
The placement of temporarily free funds is carried out for effective budget management.
The minimum balance in the Unified Treasury Account after placements in commercial banks should not be lower than the amount of the monthly salary fund from the republican budget.
The authorized body informs the National Bank about the upcoming placements to assist in liquidity management and to consider possible impacts on the currency market.
Temporarily free funds in foreign currency held in the accounts of the Cabinet of Ministers are placed by the authorized body in commercial banks in accordance with this procedure.
Interest income from the placement of temporarily free funds must be transferred to a special account of the authorized body in the Unified Treasury Account.
Chapter 2. General Conditions for Placing Temporarily Free Funds in Commercial Banks
The auction for placing temporarily free funds among commercial banks will be conducted on the platform of the Closed Joint Stock Company "Kyrgyz Stock Exchange" on behalf of the authorized body.
The conditions for early return of placed funds are defined by the placement agreement. In case of early return, the authorized body notifies the National Bank.
Only commercial banks registered in Kyrgyzstan that meet the following requirements are allowed to participate in the auction:
1) possession of a valid NBKR license for conducting banking operations;
2) profitability over the last two years;
3) an unqualified opinion from an external auditor for the last reporting year;
4) absence of overdue obligations to the state budget and the Social Fund;
5) absence of overdue debts to the NBKR and other creditors;
6) absence of temporary administration and legal disputes with the NBKR.
The procedure for placing temporarily free funds includes:
1) conducting an open auction where commercial banks submit applications indicating the amount and interest rate;
2) concluding a contract with the winning bank of the auction.
Minimum parameters for deposits:
1) currency - national or foreign currency at the discretion of the authorized body;
2) placement term from 1 to 12 months, not exceeding the end of the budget year;
3) interest accrual - simple interest;
4) interest payment - monthly, for deposits up to 1 month - at the end of the term;
5) interest is accrued based on the established rate, the number of days of placement, and the calendar number of days in the year (365/366);
6) provision for early return of the amount (or part) upon written request from the authorized body.
Chapter 3. Conditions for Conducting the Auction
Banks wishing to participate in the auction submit applications in electronic format on the platform of the Closed Joint Stock Company "Kyrgyz Stock Exchange" along with the necessary documents:
1) NBKR license for conducting banking operations;
2) financial statements for the last two years;
3) an unqualified opinion from an external auditor for the last reporting year;
4) documents confirming the absence of overdue debts;
5) written confirmation of the absence of temporary administration and legal disputes;
6) confirmation of the absence of overdue debts to the NBKR.
Banks are responsible for the accuracy of the applications and the authenticity of the documents.
Banks that have provided documents in accordance with the requirements will be allowed to participate in the auction, which is conducted according to the rules of the Closed Joint Stock Company "Kyrgyz Stock Exchange." The auction consists of several lots, each of which includes a separate amount, placement term, and starting interest rate.
The winner of the auction is determined by the highest bid. In case of equal bids, the amount is distributed proportionally among the banks. If one of the banks refuses its share, the amount is transferred to another winner.
To minimize risks, a restriction is established: the amount placed in one bank should not exceed 50% of the total volume of funds.
The authorized body confirms the results of the auction with a letter in the established form.
Chapter 4. Conditions for Concluding the Placement Agreement
After confirming the results of the auction, a contract is signed between the authorized body and the winning bank within three working days.
The authorized body places funds in the commercial bank based on the contract, transferring money to the deposit account within the timeframes specified in the document.
Chapter 5. Conducting Settlements for the Placement
The procedure for settlements is specified in the placement agreement.
Expenses for the services of commercial banks are covered by their own funds.
On the day the placement term ends, the commercial bank must timely transfer the principal amount and interest to the respective accounts.
The principal amount and interest must be credited by the end of the next working day.
In case of delay in the return of funds, the commercial bank is obliged to pay a penalty for each day of delay.
If the conditions are not met, the authorized body may go to court to impose a lien on the bank's accounts.
Chapter 6. Dispute Resolution
All disputes between the authorized body and the banks are resolved in accordance with the legislation of the Kyrgyz Republic.
Chapter 7. Accounting and Reporting
Accounting and reporting for the placement of funds are carried out in accordance with the regulatory acts of the Kyrgyz Republic.
| Appendix 1 to the Procedure for Placing Temporarily Free Funds from the Budgets of the Budget System of the Kyrgyz Republic |
APPLICATION
for participation in the auction of commercial banks for placing temporarily free funds from the budgets
Date of the auction "___" ________________________ 20__ year
_________________________________________________________________________________
_________________________________________________________________________________,
(full name of the bank)
on behalf of ___________________________________________________________________________
_________________________________________________________________________________,
(position, full name)
informs of the intention to participate in the auction for placing temporarily free funds in a bank deposit under the following conditions:
| Name | Deposit Amount (soms) | Deposit Placement Term (months) | Starting Interest Rate on the Deposit (% per annum) | Bank Rate (% per annum) |
| Lot No. 1 | ||||
| Lot No. 2 | ||||
| Lot No. 3 | ||||
| Lot No. 4 | ||||
| … | ||||
| Total |
We confirm our participation in the auction for placing temporarily free funds from the budgets.
Hereby we confirm that
_________________________________________________________________________________
_________________________________________________________________________________
(name of the bank)
meets the following criteria:
1) possession of a valid NBKR license for conducting banking activities;
2) profitability in the banking services market over the last two years;
3) an unqualified opinion from an external auditor;
4) absence of overdue obligations to the state budget and the Social Fund;
5) absence of temporary administration and legal disputes with the NBKR;
6) absence of debts to the NBKR and other creditors;
7) participation in the deposit protection system according to the legislation.
We attach the necessary documents on ________ pages.
For prompt notification on organizational issues, the authorized person is:
_________________________________________________________________________________
_________________________________________________________________________________
(position, full name of the employee, phone and other means of communication)
All information regarding the auction and interaction should be directed to the authorized person.
Legal address, phone, fax, e-mail:
Banking details:
All information provided in this application can be verified on the following websites on the internet:
_________________________________________________________________________________
(websites with official information about the bank)
| _________________________ | _____________________ | _______________________________ |
| (position) | (signature) | (full name) |
Seal
| Appendix 2 to the Procedure for Placing Temporarily Free Funds from the Budgets of the Budget System of the Kyrgyz Republic |
Confirmation of Auction Volumes
Closed Joint Stock Company "Kyrgyz
Stock Exchange"
Hereby the authorized body informs that based on the results of the auction for placing temporarily free funds, held on "___" ____________________________ 20__ year, the following results are recognized:
| Auction Lot Registration Number | Offered Volume (soms) | Approved Volume (soms) | Note |
| Total |
The total volume of temporarily free funds offered at the auction on "___" __________________________ 20__ year is _______________________ soms, with an initially announced volume of ________________ soms.
| _____________________________ | _____________________ | _______________________________ |
| position of the head of the authorized body | signature | (full name) |
