Speaking on Sputnik Kyrgyzstan, Baibosunov noted that citizens of Kyrgyzstan have begun to place greater trust in the banking system. This is linked to the establishment of a deposit protection system over the past 15 years. The banking sector actively contributes to the Deposit Protection Agency’s Fund by allocating 0.05 percent of its deposit base, resulting in a total contribution of 0.2 percent annually.

“Today, the Deposit Protection Agency safeguards not only the funds of individuals but also those of individual entrepreneurs operating without forming a legal entity. Since June 10, deposit protection has been increased fivefold. The maximum guaranteed amount per deposit has risen from 200,000 soms to 1,000,000 soms. This means that in the event of a bank’s bankruptcy, depositors will receive their deposited funds along with accrued interest. For example, if a person has 100,000 soms in a bank, they will receive the full amount plus interest. If a deposit exceeds 1 million soms, the amount above the guaranteed limit can be recovered through court proceedings under the creditor registry procedure. At the same time, I would like to note that 98 percent of deposits in Kyrgyzstan do not exceed 1 million soms,” Baibosunov explained.

Currently, deposits in the national currency are significantly more profitable, with interest rates ranging from 13 to 15.5 percent, while returns on foreign currency deposits are lower due to exchange rate volatility. Compared to the previous year, the total deposit base of Kyrgyzstan’s banking sector increased by 41.2 percent. Baibosunov emphasized that keeping funds in bank deposits is far more advantageous.

“It is important to remember that citizens’ deposits represent direct domestic investment. For businesses, loan interest rates may seem high, but they are manageable for certain sectors. Garment workshops, trade entities, and similar businesses can circulate these funds multiple times, repay the principal, and cover interest payments. The more citizens place their money in deposits, the more ‘fresh capital’ flows into the country’s economy. Interest earned on deposits offsets inflation and provides additional income, whereas keeping money at home is unprofitable, as inflation steadily erodes its value,” Baibosunov concluded.