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Economy Ministry proposes to double authorized capital of pawnshops

It is proposed to double the size of the authorized capital of pawnshops — from 500,000 to 1,000,000 soms. The Ministry of Economy and Finance of Kyrgyzstan submitted the corresponding amendments to the resolution of the Cabinet of Ministers for public discussion.

The ministry notes that the licensing of pawnshops began in July 2017. Then the requirements for the minimum size of the authorized capital of pawnshops were established in the amount of at least 500,000 soms. At the beginning of 2021, at least 352 pawnshops were operating in Kyrgyzstan. It is planned to increase the minimum authorized capital in the next three years.

It is proposed to set it at 1 million soms from January 1, 2022, from January 1, 2023 — at 2 million, and from 2024 — at 3 million.

«Pawnshops activity provides an opportunity to get fast, but small, short-term loans, which citizens use when they need to find cash for their consumer needs. When issuing a loan at interest, pawnshops accept movable property as collateral. At the same time, an insignificant amount of financial resources does not contribute to improving the technical capabilities of pawnshops, purchase of high-quality and modern equipment, ensuring a high-quality assessment and control system, storage conditions for mortgaged property, solving subsequent problems with the sale of unclaimed property,» the background statement to the document says.