On April 8, 2024, the Chairman of the Cabinet of Ministers of the Kyrgyz Republic, A. Japarov, signed the resolutions of the Cabinet of Ministers of the Kyrgyz Republic “On the Reorganization of the Deposit Protection Agency of the Kyrgyz Republic” (No. 157) and “On Approval of the Regulation on the Procedure for Reviewing Appeals of Problem Borrowers of Banks and Other Financial and Credit Institutions” (No. 158).

1. In accordance with the Resolution of the Cabinet of Ministers of the Kyrgyz Republic “On the Reorganization of the Deposit Protection Agency of the Kyrgyz Republic” (hereinafter – the Resolution), the purpose and objectives of the reorganization of the Deposit Protection Agency of the Kyrgyz Republic are implemented within the framework of the execution of the Decree of the President of the Kyrgyz Republic dated August 10, 2022, No. 281 “On the Reorganization of the Deposit Protection Agency of the Kyrgyz Republic by Assigning It the Functions of Liquidating Banks and Other Financial and Credit Institutions and Reviewing Appeals of Problem Borrowers,” aimed at increasing the efficiency of the deposit protection system, as well as bringing the decisions of the Cabinet of Ministers of the Kyrgyz Republic into compliance with the Law of the Kyrgyz Republic “On Protection of Bank Deposits” (as amended by Law No. 207 of December 14, 2023).

This Resolution provides for the reorganization of the Deposit Protection Agency of the Kyrgyz Republic (hereinafter – the Agency) by merging with the Bank Liquidation Agency in accordance with the procedure established by law, as well as the approval of the Regulation “On Deposit Protection of the Kyrgyz Republic,” which includes the functions and powers necessary to ensure the effective operation of the mandatory deposit protection system, the liquidation of banks and financial and credit institutions, and the review of appeals of problem borrowers.

Furthermore, in accordance with the Law of the Kyrgyz Republic “On Protection of Bank Deposits,” the Resolution includes the Regulation on the Deposit Protection Agency of the Kyrgyz Republic, which defines the organizational and legal form of the Agency, the main rules of its establishment and operation, its tasks, functions, and powers aimed at ensuring the effective functioning of the mandatory deposit protection system, liquidation of banks and financial and credit institutions, and review of appeals of problem borrowers.

2. In accordance with the Resolution of the Cabinet of Ministers of the Kyrgyz Republic “On Approval of the Regulation on the Procedure for Reviewing Appeals of Problem Borrowers of Banks and Other Financial and Credit Institutions.”

The main purpose and objective of the aforementioned Regulation (hereinafter – the Regulation) is to implement the tasks, functions, and powers provided for by the Law of the Kyrgyz Republic “On Protection of Bank Deposits” (as amended by Law No. 207 of December 14, 2023). This Resolution was adopted to regulate the Agency’s activities in reviewing appeals of problem borrowers of banks and other financial and credit institutions.

Under the Law of the Kyrgyz Republic “On Protection of Bank Deposits” (as amended by Law No. 207 of December 14, 2023), the Agency has been assigned the functions of liquidating banks and financial and credit institutions licensed by the National Bank of the Kyrgyz Republic, as well as reviewing appeals of banks and other financial and credit institutions.

The Regulation defines the procedure and process for reviewing appeals of problem borrowers of banks and other financial and credit institutions, as well as the rights and powers of the Agency in its interaction with other state authorities, the National Bank of the Kyrgyz Republic, banks, and other financial and credit institutions during the review of such appeals.

In addition, the Regulation defines the Agency’s powers to provide consultative and legal assistance to problem borrowers when appealing court decisions to higher judicial instances, matters related to the enforcement of court decisions involving pledged property or its repurchase procedure, as well as possible violations of rights during enforcement proceedings carried out by authorized officials responsible for executing court decisions.

These Resolutions of the Cabinet of Ministers were published on April 12 and shall enter into force on April 24, 2024.