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Russian-Kyrgyz Development Fund becomes shareholder of Kyrgyz Stock Exchange

The Russian-Kyrgyz Development Fund (RKDF) acquired 7.5 percent of the shares of the Kyrgyz Stock Exchange CJSC on the secondary market and officially became its shareholder on December 31, 2020. It was announced at a meeting on the development of the stock market, which was chaired by the Acting Prime Minister, First Deputy Prime Minister of Kyrgyzstan Artem Novikov.

«The emergence of such a major player should attract the attention of potential investors to the securities market, which will serve as a catalyst for a serious strengthening of the investment component on the domestic stock market, especially since the National Bank has minimized the reserve requirements for covering potential losses from 50 to 5 percent on securities of companies — residents of the Kyrgyz Republic,» Artem Novikov said.

The Government of Kyrgyzstan and the RKDF plan in the future to carry out a number of measures to promote the development of the country’s stock market. At the first stage, the main task will be the activity of the fund as an institutional investor, which will buy up to 15 percent of the volume of large bond issues.

Following the meeting, the State Service for Regulation and Supervision over the Financial Market was instructed in the near future to prepare and submit for approval a strategy for the development of the financial market and to work out the issue of reducing the cost of services for operation of companies on the stock exchange.