The Minister of Finance of Kyrgyzstan, Almaz Baketayev, commented on high interest rates on loans in commercial banks.
According to him, both the loan portfolio and the capital of banks in the country are very small.
The minister believes that in order for a commercial bank to survive, it needs its own income. «With a small capital, this is very difficult to do this, so there are certain difficulties in the mechanism for reducing interest rates,» he said.
The Ministry of Finance is working to increase the authorized capital of commercial banks and will seek to reduce interest rates on loans in the coming years.
According to Almaz Baketayev, commercial banks need to increase their capital at least five to ten times.
