the law of the kyrgyz republic 

Bishkek, No. 163 as of July 24, 2013  

On the Restriction of Usurious Activities in the Kyrgyz Republic 

(As amended by Laws of the Kyrgyz Republic No. 88 as of May 23, 2024, No. 238 as of October 28, 2025) 

This Law determines the basic principles of the state policy in the field of restricting the usurious activities in the Kyrgyz Republic and the legal basis for establishing the restrictions. 

Article 1. The Scope of This Law 

This Law shall apply to lenders – individuals and legal entities, irrespective of the form of ownership, extending loans and credits at interest, providing financing with a markup, falling under the definition of the usurious activities, except for credits/financing provided in accordance with the Law of the Kyrgyz Republic “On the consumer credit”. 

(As amended by Law of the Kyrgyz Republic No. 238 as of October 28, 2025) 

Article 2. The Legislation of the Kyrgyz Republic on the Restriction of Usurious Activities and its Scope of Application 

1. The legislation of the Kyrgyz Republic on the restriction of usurious activities is based on the Constitution, the Civil Code, this Law and other regulatory legal acts of the Kyrgyz Republic. 

2. The provisions of the legislation of the Kyrgyz Republic relating to the matters of restricting the interest rates/the markup in a judicial procedure shall not conflict with this Law.

(As amended by Law of the Kyrgyz Republic No. 238 as of October 28, 2025) 

Article 3. The Purpose of This Law 

The purpose of this Law is to protect the rights of the consumers – the borrowers by ensuring the fair determination of the interest rates on loans and credits, the markup on the financing. 

(As amended by Law of the Kyrgyz Republic No. 238 as of October 28, 2025) 

Article 4. Basic terms and definitions used in this Law 

The following definitions are used for the purposes of this Law:

1) a High Interest/Markup - the value of the interest rate/the markup (in annual, nominal percentage terms) is equal to or greater than the permissible maximum interest/mark-up;

2) a Loan is a type of contractual relationship whereby one party (the lender) transfers the funds and/or the tangible assets to the ownership of another party (the borrower), and the borrower undertakes to return the same amount of the funds and/or the tangible assets to the lender with or without paying interest;

3) a Borrower is an individual or a legal entity who has received the funds and/or the tangible assets from the lender by way of a credit, a loan, financing on the basis of repayment and interest payment;

4) a Credit is the funds provided by the lender to the borrower in the amount and under the terms stipulated in the agreement, which the borrower undertakes to repay and pay interest on them;

5) a Lender is an individual or a legal entity that provides the borrower with the funds and/or the tangible assets through a credit, a loan, financing on the basis of repayment and interest payment;

6) a Maximum Permissible Interest/Markup is the amount of the interest rate on the extension of the credit and the loan, the markup (in annual, nominal percentage terms) on the financing issued by the persons referred to in article 1 of this Law, established in accordance with the procedure provided for by this Law, the excess of which is not recognized by the state;

7) Usurious Activities are the activities of individuals and legal entities to provide the funds and/or the tangible assets under an agreement on the basis of maturity, repayment and interest payment, while providing for high interest/markup for the use of the specified funds and/or tangible assets in the agreement;

8) Usurious Interest Rates are the interest rates under the credit agreement or the loan agreement, as well as the markup (in annual, nominal percentage terms) under the financing agreement in the amount exceeding the maximum permissible interest/markup;

9) Usury means the provision of the funds and/or the tangible assets in the form of a credit, a loan, financing at the high interest/markup;

10) Financing is the provision of funds, goods or services by one party (the lender) to another (the borrower) based on contractual arrangements that comply with the principles of Islamic finance. 

(As amended by Law of the Kyrgyz Republic No. 238 as of October 28, 2025) 

Article 5. Relationship Between the Borrower and the Lender 

1. The relationship of the borrower with the lender shall be based on the credit agreement or the loan agreement, the financing agreement (in a hard- or softcopy form) in accordance with the requirements of the civil legislation. 

2. The agreement shall provide for the main terms and conditions of the contracting parties, that is, the subject matter of the agreement; rights, obligations and responsibilities of the parties; the conditions and the procedure for payment of interest on the credit, the loan; the markup on the financing; the amount of the interest rate/the markup exclusively on an annualized basis; rates and/or tariffs for carrying out operations; the procedure for introducing amendments to the agreement; deadlines; penalties for the failure to fulfill, untimely fulfillment of the terms and conditions of the agreement; other terms and conditions as agreed upon by the parties. 

(As amended by Law of the Kyrgyz Republic No. 238 as of October 28, 2025) 

Article 6. Restriction of the Interest Rates 

1. The maximum permissible interest/markup shall be calculated on the basis of a weighted average nominal interest rate determined by the National Bank of the Kyrgyz Republic, to which 12 percent shall be added.

The maximum permissible annual effective interest rate of the pawnshop loan shall be calculated on the basis of a weighted average nominal interest rate determined by the National Bank of the Kyrgyz Republic, to which 12 percent shall be added.

2. The weighted average nominal interest rate on the existing credits/financing of the banks and other financial and credit organizations licensed and regulated by the National Bank of the Kyrgyz Republic, shall be calculated by the National Bank of the Kyrgyz Republic on a semi-annual basis and published on its official website. 

The method of calculating the weighted average interest rate shall be determined by the National Bank of the Kyrgyz Republic.

3. In the case of usurious activities, if the borrower fails to fulfill its obligations to the lender, the borrower’s collateralized property shall be seized exclusively through a judicial procedure. 

4. When determining the borrower’s monetary and/or material obligations to the lender, the amount of the forfeit (fines, penalties) accrued for the entire period of the credit or the loan/the financing shall not exceed 20 percent of the amount of the disbursed credit or loan/financing, unless otherwise specified by the banking legislation for persons supervised by the National Bank of the Kyrgyz Republic. 

5. When determining through a judicial procedure the amount of the borrower’s debt for interest in accordance with the credit agreement or the loan agreement, the markup under the financing agreement, the court shall apply the maximum permissible interest/markup determined in accordance with this Law on the date of concluding the agreement, if the lower interest rate on the credit or the loan/the markup under the financing agreement is not set by the credit agreement or the loan agreement/the financing agreement. 

The National Bank of the Kyrgyz Republic shall be entitled to apply enforcement measures in accordance with the banking legislation of the Kyrgyz Republic against persons supervised by the National Bank of the Kyrgyz Republic, if the credit agreement/the financing agreement determines the amount of the rate/the markup (in annual, nominal percentage terms) above the maximum permissible interest.

(As amended by Laws of the Kyrgyz Republic No. 88 as of May 23, 2024, No. 238 as of October 28, 2025) 

Article 7. Enactment of This Law 

1. This Law shall come into effect fifteen days after the date of its official promulgation. 

Published in the newspaper “Erkin Too” No. 63-64 as of July 30, 2013  

2. The Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic are to bring their regulatory legal acts in accordance with this Law within three months. 

3. This Law shall apply to the relationship between the lender and the borrower on outstanding credits and loans that have occurred prior to the enactment of this Law. 

  

President of the Kyrgyz Republic		A. Atambaev
Adopted by the Zhogorku Kenesh of the Kyrgyz Republic		June 20, 2013