On the Reorganization of the Deposit Protection Agency of the Kyrgyz Republic
On April 8, 2024, the Chairman of the Cabinet of Ministers of the Kyrgyz Republic, A. Japarov, signed the Cabinet of Ministers’ resolutions “On the Reorganization of the Deposit Protection Agency of the Kyrgyz Republic” and “On the Approval of the Regulation on the Procedure for Considering Appeals from Distressed Borrowers and Other Financial and Credit Organizations”.
- The goal and objective of the Cabinet of Ministers’ resolution “On the Reorganization of the Deposit Protection Agency of the Kyrgyz Republic” (hereinafter referred to as the resolution) is to increase the efficiency of the deposit protection system within the framework of implementing the Decree of the President of the Kyrgyz Republic of August 10, 2022, No. 281 “On the reorganization of the Deposit Protection Agency of the Kyrgyz Republic with the granting of functions for the liquidation of banks and other financial and credit organizations and the consideration of appeals from distressed borrowers,” as well as to bring the decisions of the Cabinet of Ministers of the Kyrgyz Republic into compliance with the Law of the Kyrgyz Republic “On the Protection of Bank Deposits (Deposits)” (as amended by the Law of December 14, 2023, No. 207).
This resolution provides for the reorganization of the Deposit Protection Agency of the Kyrgyz Republic (hereinafter—the Agency) by merging the Bank Liquidation Agency into it in the manner prescribed by law, as well as the approval of the Regulation “On the Deposit Protection Agency of the Kyrgyz Republic,” which, in accordance with the aforementioned Law, 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 organizations, and the consideration of appeals from distressed borrowers.
Also, in the Regulation on the Deposit Protection Agency of the Kyrgyz Republic attached to the resolution, in accordance with the Law of the Kyrgyz Republic “On the Protection of Bank Deposits (Deposits),” the legal and organizational form, basic rules of organization and activity, tasks, functions, and powers of the Agency necessary to ensure the effective operation of the mandatory deposit protection system, the liquidation of banks and financial and credit organizations, as well as the consideration of appeals from distressed borrowers are defined.
- The main goal and objective of the Cabinet of Ministers’ resolution “On the Approval of the Regulation on the Procedure for Considering Appeals from Distressed Borrowers and Other Financial and Credit Organizations” (hereinafter referred to as the Regulation) is the implementation of the tasks, functions, and powers established by the Law of the Kyrgyz Republic “On the Protection of Bank Deposits (Deposits)” (as amended by the Law of December 14, 2023, No. 207). This resolution was adopted to regulate the activities of the Agency when considering appeals from distressed borrowers of banks and other financial and credit organizations.
In accordance with the Law of the Kyrgyz Republic “On the Protection of Bank Deposits (Deposits)” (as amended by the Law of December 14, 2023, No. 207), the Agency is granted the functions of liquidating banks and financial and credit organizations and considering the appeals of distressed borrowers from banks and other financial and credit organizations licensed by the National Bank of the Kyrgyz Republic.
This Regulation defines the procedure and process for considering the appeals of distressed borrowers from banks and other financial and credit organizations, the rights and powers of the Agency in its interaction with other state bodies, the National Bank of the Kyrgyz Republic, banks, and other financial and credit organizations when considering the appeals of distressed borrowers from banks and other financial and credit organizations.
These resolutions of the Cabinet of Ministers were published on April 12 and will enter into force on April 24, 2024.
