The Committee on Budget, Economic, and Fiscal Policy of the Parliament of Kyrgyzstan approved in the first reading a bill introducing electronic bills of exchange. The document amends the law on Kyrgyzstan’s accession to the Convention on Bills of Exchange and Promissory Notes.
The main goal of the initiative is to allow businesses to formalize debt obligations digitally using an electronic signature.
A bill of exchange is a security and a strictly formalized promissory note, under which the issuer undertakes to pay a specified amount by a specific date.
Currently, the republic has an outdated rule requiring only paper documents, which, according to the initiators, hinders the development of modern financial instruments. The digital format will significantly reduce the risk of document loss or forgery, as well as automate settlement processes.
The introduction of electronic bills of exchange will help businesses significantly reduce costs. Entrepreneurs will no longer have to incur expenses on physical storage, shipping, and the complex authentication process of paper forms. Furthermore, the transition to digital technology will increase the transparency of financial transactions and simplify cross-border settlements, bringing Kyrgyzstan’s banking system closer to international standards.
The drafters of the bill emphasize that electronic bills will have the same legal force as traditional paper ones. However, the old model will not be abolished—both forms will exist and operate in parallel, giving market participants the right to choose the most convenient method for conducting transactions.
