Frequently Asked Questions (FAQ)
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Frequently Asked Questions
Deposit Protection System
Which deposits are not covered by protection?
The following deposits are not covered by the deposit protection system:
deposits belonging to employees of banks, microfinance organizations, and housing savings credit companies;
deposits of foreign consultants and external auditors;
deposits placed on behalf of a legal entity under a trust management agreement;
deposits that are seized or subject to other legal restrictions;
deposits placed in branches located outside the territory of the Kyrgyz Republic.
Which deposits are covered by protection?
Deposits of individuals and individual entrepreneurs are protected in accordance with the law, provided that they are placed in a bank or financial institution participating in the deposit protection system.
How is the Deposit Protection Fund financed?
The Fund is financed through entry, regular (calendar), and special contributions made by participating banks. The regular contribution is set at 0.2% of the bank’s annual deposit base
Guarantee and Compensation
What is the guaranteed amount?
In the event of an insured case, each depositor is entitled to compensation of up to 1,000,000 soms, including the principal amount of the deposit and accrued interest.
What is an insured event?
An insured event occurs when a bank or another participating financial institution has its license revoked or when the official liquidation (bankruptcy) procedure is initiated.
Are deposit interest payments covered?
Yes. Interest accrued up to the date of the insured event but not yet paid to the depositor is included in the compensation amount. The total compensation amount must not exceed 1,000,000 soms.
What should a depositor do if a bank becomes bankrupt?
After a guaranteed event is officially announced, the Agency publishes the procedure for compensation payments on its official website and in the media. A depositor may apply through the designated agent bank or directly to the Agency
Compensation Payment Process
When does the compensation payment begin?
The compensation payment must begin no later than 30 calendar days from the date of the insured event.
Who announces the start of compensation payments and how?
Information on the commencement of compensation payments is published by the Agency through national mass media, on the official website www.deposit.kg, as well as via agent banks.
Within what time frame is compensation paid?
Within 10 calendar days after the guaranteed event occurs, the temporary administrator or liquidator must submit information about eligible deposits to the Agency. Based on this information, compensation payments are initiated
How is the compensation amount calculated?
he compensation amount is calculated as of the date of the guaranteed event. Accrued but unpaid interest is included; however, it must not exceed the National Bank’s policy rate applicable on that date
How is an agent bank selected to pay compensation?
An agent bank is selected on a competitive basis by a special commission. If necessary, one or several agent banks may be appointed
Where should a depositor apply to receive compensation?
A depositor may apply to the designated agent bank or directly to the Deposit Protection Agency of the Kyrgyz Republic. Information on the payment procedure is officially published
Documents and Application Procedure
How are deposits in foreign currency paid?
To receive compensation, the depositor must submit the following documents to the agent bank:
an application in the prescribed form;
a valid passport;
a deposit agreement or an account statement;
a power of attorney (if applicable).
How are deposits in foreign currency paid?
The amount of deposits in foreign currency is paid in soms at the official exchange rate set by the National Bank of the Kyrgyz Republic as of the date of the insured event.