The Ministry of Finance of Kyrgyzstan has for the first time conducted a money auction on the Kyrgyz Stock Exchange (KSE), the exchange reported.
The new mechanism is part of the roadmap for developing the country’s stock market and is aimed at building a modern financial infrastructure. According to the KSE, auctions will help increase transparency and efficiency of procedures, strengthen investor confidence in government instruments, create a single liquidity center with equal access for participants, and enhance the exchange’s investment appeal for future issuers.
The first auction for placing funds from the mitigation account into deposits of commercial banks was held on September 17. Out of 24 billion soms offered, 20.3 billion soms were placed.
Deposit terms and rates were as follows:
- 12 months — from 10.05 percent to 12.2 percent;
- 24 months — from 11 percent to 12.7 percent;
- 36 months — 13.1 percent.
Chairman of the KSE Board of Directors, Talantbek Omuraliev, said the launch of the auctions was a strategic step toward strengthening trust in financial instruments and creating new opportunities for investors and issuers.
The KSE described the auction as a historic event.
