The key change concerns paragraph 23 of the previously approved Regulation.
Now, participants in currency swap operations are required to direct funds received from swaps not only to finance projects of potential borrowers but also to "invest in the authorized capital of legal entities," which includes contributions to the authorized capital or the purchase of shares (stocks).
After carrying out these operations, participants must provide the authorized body with general information about the financed projects.
Currency swap operations are used to ensure liquidity in the national currency (direct swap) or to withdraw excess liquidity (reverse swap).
This resolution will come into effect seven days after its official publication. The document was published in the newspaper "Erkin Too" on March 10, 2026, number 18.
Text of the Regulation
Appendix
(to the resolution of the Cabinet of Ministers of the Kyrgyz Republic
dated June 19, 2023, No. 305)
REGULATION
on the procedure for conducting operations for the exchange of currency assets
(Amended by the resolution of the Cabinet of Ministers of the Kyrgyz Republic dated March 5, 2026, No. 149)
1. General provisions
1. This Regulation defines the procedure for conducting operations for the exchange of currency assets (hereinafter - currency swap operations) by the authorized state body with financial and credit institutions and other organizations of the Kyrgyz Republic (hereinafter - participant).
2. The authorized body conducts currency swap operations in accordance with the Budget Code of the Kyrgyz Republic and this Regulation.
3. The authorized body may conduct the following types of currency swap operations:
- direct swap;
- reverse swap.
4. The main objectives of conducting currency swap operations are to ensure liquidity in the national currency (direct swap) or to withdraw excess liquidity (reverse swap).
5. Participants in the operations are financial and credit organizations and other organizations that meet the requirements of paragraph 10 of this Regulation.
6. The participant undertakes to pay interest for the use of the national currency, as established by the authorized state body.
7. The relations between the participant and the authorized body regarding currency swap operations are regulated by this Regulation and a bilateral agreement on the procedure for conducting operations for the exchange of currency assets (hereinafter - Agreement), approved by the authorized body.
8. Each currency swap operation is carried out under the conditions defined by the contract, which is an integral part of the Agreement and must not contradict its terms.
2. Definitions and terms
In this Regulation, the following definitions are used:
1) currency swap operation - an operation involving the exchange of national currency for an equivalent amount in foreign currency with an obligation for a reverse exchange and the accrual of interest for the use of national currency within the established period;
2) exchange currency - foreign currency used within the framework of the currency swap operation;
3) reverse swap - an operation in which the authorized body sells foreign currency to the participant in exchange for national currency with an obligation for a reverse exchange;
4) direct swap - an operation in which the authorized body purchases foreign currency from the participant in exchange for national currency with an obligation for a reverse exchange.
3. General conditions for conducting currency swap operations
9. To access the currency swap operation, the participant must send a letter of intent to the authorized body.
10. The participant must meet the following requirements:
1) be a resident of the Kyrgyz Republic;
2) have been operating in the financial market for the last two years;
3) have an unqualified opinion from an external auditor confirming compliance of accounting and reporting with established standards for the last year;
4) have no overdue debts on taxes and other mandatory payments to the budget of the Kyrgyz Republic;
5) have no overdue debts to other creditors and counterparties.
Subparagraphs 4 and 5 do not apply to international development funds operating under intergovernmental agreements.
11. The authorized body makes a decision on conducting the currency swap operation by issuing the relevant order. Upon a positive decision, the Agreement is signed, under which separate contracts for swap operations are concluded.
12. The conditions of the currency swap operation are determined by the authorized body and include:
1) type of currency swap operation:
- direct;
- reverse;
2) parameters:
- term up to 5 years with automatic extension for up to 3 years, but not more than 2 times;
- the total volume must not exceed the amount provided in the republican budget for the current year for the repayment of obligations to international creditors;
- exchange currency;
- interest rate on the national currency;
3) additional conditions:
- possibility of early termination of the operation;
- conditions for partial early termination of the operation.
13. Additional conditions are determined by agreement with the participant and are recorded in the Agreement.
14. The conditions of the currency swap operations are communicated to the participant upon signing the Agreement.
15. The authorized body and participants ensure the confidentiality of the information contained in the Agreement.
16. The interest accrual period is defined as the number of calendar days starting from the next day after the funds are credited and ending on the day of the reverse crediting. The repayment of interest is carried out in accordance with the conditions of the Agreement.
17. If the date of execution of the swap operation coincides with a non-working day, the execution is postponed to the next working day without recalculating the amount.
18. The official exchange rate established by the National Bank of the Kyrgyz Republic on the day of the operation is used for currency exchange.
19. The crediting and debiting of funds in the national currency is carried out on the participant's account and the account of the authorized body.
20. The crediting and debiting of funds in foreign currency is carried out independently by the participant and the authorized body.
21. Profits from operations are directed to the republican budget, while losses are covered by the budget.
4. Rights, obligations, and responsibilities of the participant
22. The rights and obligations of the parties are defined by this Regulation and the Agreement.
23. The participant is obliged to direct the funds received from the currency swap operation to finance projects of potential borrowers or to invest in the authorized capital of legal entities, subsequently providing general information about such projects to the authorized body.
(Amended by the resolution of the Cabinet of Ministers of the Kyrgyz Republic dated March 5, 2026, No. 149)
24. The failure of the participant to fulfill obligations under the currency swap operation includes:
in the case of a direct swap:
- incomplete or untimely crediting of funds in foreign currency;
- lack of sufficient funds in national currency in the participant's account on the date of completion of the operation;
in the case of a reverse swap:
- lack of sufficient funds in national currency in the participant's account on the date of execution of the operation;
- incomplete or untimely crediting of funds in foreign currency.
25. The failure of the authorized body to fulfill obligations includes:
- in the case of a direct swap - incomplete or untimely crediting of funds in foreign currency;
- in the case of a reverse swap - incomplete or untimely crediting of funds in foreign currency.
26. In the event of non-fulfillment of obligations, the participant pays the authorized body a fine of 0.05% of the amount of the operation.
27. In the event of non-fulfillment of obligations by the authorized body, the latter pays the participant a fine of 0.05% of the amount of the operation.
5. Dispute resolution
28. All disputes arising from the conditions of operations for the exchange of currency assets are resolved in court.
6. Accounting and reporting
29. Accounting and reporting for operations are conducted in accordance with established procedures.
