On April 8, 2024, the Chairman of the Cabinet of Ministers of the Kyrgyz Republic, A. Zhaparov, signed the following resolutions:

• No. 157 — “On the Reorganization of the Deposit Protection Agency of the Kyrgyz Republic”
• No. 158 — “On Approval of the Regulation on the Procedure for Reviewing Appeals from Problem Borrowers of Banks and Other Financial Credit Institutions”

1. Reorganization of the Deposit Protection Agency

Resolution No. 157 was adopted to implement Presidential Decree No. 281 dated August 10, 2022.

The main objectives of the resolution include:

• improving the effectiveness of the deposit protection system;
• assigning the Agency functions related to the liquidation of banks and other financial credit institutions;
• granting the Agency authority to review appeals from problem borrowers;
• aligning Cabinet of Ministers decisions with the Law of the Kyrgyz Republic “On Protection of Bank Deposits” (as amended on December 14, 2023, No. 207).

Under the resolution, the Deposit Protection Agency is reorganized through the merger with the Bank Liquidation Agency. A regulation defining the Agency’s legal status, functions, responsibilities, and powers has also been approved.

2. Procedure for Reviewing Appeals from Problem Borrowers

Resolution No. 158 approves a regulation governing the procedure for reviewing appeals from problem borrowers of banks and other financial credit institutions.

The regulation establishes:

• the procedure and process for reviewing appeals;
• interaction between the Agency, government bodies, the National Bank of the Kyrgyz Republic, and financial institutions;
• provision of legal and advisory assistance to problem borrowers;
• the Agency’s powers related to court decisions, collateral issues, and enforcement proceedings.

The resolutions were published on April 12, 2024, and entered into force on April 24, 2024.