Kyrgyzstan's Deposit Protection Fund has reached KGS 6bn ($71.2mn) as of the end of August, according to Kadyrbek Bukuev, Executive Director of the Deposit Protection Agency. He highlighted that in the first 8M24, the fund saw an increase of KGS 911.7mn ($10.8mn), marking a growth of 15.6%.
Bukuev further stated that the agency’s 2024 target has already been fulfilled by 94.4%, and based on current trends, the total fund size is projected to reach KGS 7.2bn ($85.3mn) by the end of the year.
Since 2008, all banks in Kyrgyzstan have been required to participate in the deposit protection system. Upon joining, banks contribute 1% of their authorized capital to the Deposit Protection Fund and continue to transfer 2% of their deposits annually. The Deposit Protection Agency manages these funds by investing in National Bank notes, government securities, and treasury bills.
The fund serves as a safeguard for depositors in the event of a bank's bankruptcy. In such cases, the Deposit Protection Agency will compensate depositors with amounts up to KGS 1 mn ($11,852). This mechanism aims to provide financial security and trust in the banking system.
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