Kyrgyzstan’s President Urges Citizens to Invest in Government Securities

President Sadyr Japarov has called on citizens of Kyrgyzstan to invest in government securities, describing them as one of the country’s most reliable investment instruments because they are backed by the state. In a statement on his Facebook page, Japarov announced what he described as “an important initiative that will allow every citizen to improve their financial situation while contributing to the development of Kyrgyzstan.” The Cabinet of Ministers has made government securities available to the public with an annual interest rate of 17%, according to Japarov. The securities can be purchased through a mobile app, he said. Invested funds will be repaid in full after two years, with interest payments made every three months. Japarov said returns on government securities would exceed those offered by most bank deposits. Deposit rates at commercial banks in Kyrgyzstan generally range from around 10% to 14% per year for deposits in the national currency, depending on the bank and product. Some microfinance organizations offer higher rates. Two types of government securities are available through the Kyrgyz Stock Exchange: state treasury bills and state treasury bonds. The National Bank of the Kyrgyz Republic also publishes auction results for government securities, with recent state treasury bond yields ranging from 12.86% to 16%, depending on maturity. Government securities are issued to finance national projects, cover budget deficits, and refinance maturing government debt.