This information was confirmed by a representative of the mentioned service.
During the inspection, it was found that the owners of three pawnshops exceeded the allowed interest rates. As a result, each of them was fined 28,000 soms.
At the end of last week, both the owners of the pawnshops and their clients were summoned to the GKNB office in the Jalal-Abad region. At the meeting, it was reported that many pawn organizations were issuing short-term loans secured with excessive surcharges, which, when calculated on an annual percentage basis, exceeded permissible norms. The pawnshop owners were warned to stop charging amounts above the established rates, taking advantage of the financial dependence of citizens. They were also informed that the interest rates on loans should not exceed the limits set by government authorities, and that failure to comply with the law would result in enforcement measures.
The pawnshop owners themselves reported that they mainly work with gold jewelry as collateral and are willing to adhere to the established norms. Some even expressed their intention to close their establishments.
Elmurad Dubanaev, a resident of the Suzak district, has been using pawn services for many years. He recalls how at one time he paid 5 soms a day for a loan of 1,000 soms, while in recent years it has been 3 soms. Now he hopes for a reduction in rates, which would be a relief for many people.
“I took loans of 20,000–30,000 soms. Once, I pawned a car for 100,000 soms and was able to buy it back after two months. I acted within my means. I heard about those who, having pawned their cars, could not get them back. People go to pawnshops out of necessity — this service is essential. It’s good that the government intervened and is lowering the rates. This will be a great relief for people,” he added.
Zhanybek Keneshov, the chief specialist of the Southern Region of the Service for Regulation and Supervision of the Financial Market, noted that there are 48 pawnshops registered in the Jalal-Abad region, of which only two have permission to accept cars as collateral.
“Until the first half of 2024, there were no restrictions on interest rates — all conditions were determined by agreement between the client and the owner. Starting in 2024, interest rates on loans should not exceed 30% per year. Unfortunately, we observed that some rates exceeded 70%. Therefore, the owners of three pawnshops that issued loans at high interest rates were fined 28,000 soms,” he added.
Now, pawnshop clients can expect to pay 0.83 tyiyn per day for every 1,000 soms.
Earlier, the chairman of the GKNB, Kamchybek Tashiev, raised the issue of high interest rates in pawnshops, noting that many citizens have suffered as a result, and instructed to conduct inspections.
- In total, there are currently 431 pawnshops operating across Kyrgyzstan.
