The figures came out of a working session held in Bishkek on 27 July, organised by Bakyt Sydykov, the president’s special representative for special assignments, with state bodies, the National Bank and commercial banks in the room.
The three companies closed are Shisan, Rama Group and Nova Project. Those are the same three that the European Union placed under tightened export controls in its 21st package on 24 July. One cryptocurrency company has lost its licence.
EcoIslamicBank, which drew a transaction ban effective 13 August over its connection to Russia’s SPFS financial messaging system, told the meeting that it conducts no operations with listed persons or companies, that it works to internal compliance controls and international financial monitoring standards, and that it will supply further compliance information to Western partners.
The National Bank spoke on 28 July. It said the banking system holds sufficient capital and liquidity and can withstand external risks, that it will monitor the situation and take measures if needed to minimise consequences for the financial system, and that commercial banks continue to serve clients without interruption. It held the policy rate at 12% the same day.
As of June, 31 Kyrgyz companies sat under Western sanctions, five of them banks.
A state closing its own companies before a foreign regulator reaches them is doing that regulator’s enforcement work. It is also the cheapest insurance available for the banks that stay off the list.