Situation in the Kyrgyz Republic Before the Official Launch of the WE Finance Code

Women’s entrepreneurship is a key sector of any country’s economy. At the beginning of the 20th century, women began to engage in business on a large scale. This process has been called a “quiet economic revolution.” At that time, the term “women’s entrepreneurship” emerged, referring to businesses led by women. Women’s entrepreneurship has become a modern trend that contributes to economic growth, prompting many countries to develop policies to support and stimulate this type of business.

To address and overcome barriers faced by women in the economy, the National Development Program of the Kyrgyz Republic through 2026 included a dedicated program to support and develop women’s entrepreneurship. The program focuses on four areas: enhancing women’s capacity, improving women’s access to financial resources, developing skills and education, and creating discussion and networking platforms for women entrepreneurs.

However, assessing the results of the program or attracting more resources for women entrepreneurs was hindered by the absence of a legal definition of “women’s entrepreneurship.” To resolve this issue, deputies of the Jogorku Kenesh proposed introducing the definition of “women’s entrepreneurship” through amendments to the Law “On the Protection of Entrepreneur Rights.”

According to the amendments introduced by Law No. 4 of January 11, 2025, to the Law “On the Protection of Entrepreneur Rights,” women’s entrepreneurship was legally defined as business activity in which the subjects of entrepreneurship are:

• a woman operating as an individual entrepreneur;
• a legal entity conducting commercial activity and registered in the Kyrgyz Republic, where at least 51 percent of shares (or participation interests) are owned by a woman (or women) and at least 51 percent of the staff are women.

Since 2022–2023, almost half of commercial banks (OAO “Eldik Bank,” ZAO “Commercial Bank KSB,” ZAO “Bank Azii,” OAO “Bakai Bank,” OAO “O!Bank,” ZAO “Kyrgyz Investment and Credit Bank,” ZAO “FINCA Bank,” OAO “Aiyl Bank”) began offering specialized loan products for women entrepreneurs.

Additionally, ZAO “FINCA Bank” introduced the “Kyial” savings deposit for women seeking high-interest investment opportunities. In 2022, ZAO “Bank Azii,” together with partners including the Institute for Economic Policy Research, UN Women, GFC, KFB, and Senti, issued gender bonds totaling KGS 29 million, aimed at supporting women entrepreneurs in the Kyrgyz Republic by financing business projects. In 2024, CJSC “Bank of Asia” issued its second tranche of social bonds. The purpose of the issuance was to finance sustainable development projects and initiatives aimed at supporting women entrepreneurs, as well as the development of socially significant projects and small and medium-sized enterprises. The total volume of bonds placed amounted to KGS 82 million, of which KGS 64.2 million was allocated to financing women entrepreneurs at preferential interest rates.

In April 2025, the EBRD approached the Union of Banks of Kyrgyzstan with a proposal to participate in establishing the WE Finance Code Coalition as the national coordinator. The Union of Banks of Kyrgyzstan supported the initiative and ensured the coordination of the financial sector, engaging banks and microfinance institutions in signing letters of commitment to the Code.

Within a short period, ten organizations joined the Coalition: ZAO “Kyrgyz Investment and Credit Bank,” ZAO “Bank Companion,” OAO “Eldik Bank,” OAO “Optima Bank,” OAO “Aiyl Bank,” OAO “Bakai Bank,” ZAO “Demir Kyrgyz International Bank,” OAO “Guarantee Fund,” ZAO MCC “Baylyk Finance,” and ZAO MFI “Oksus.” These institutions undertook commitments in three key areas:

1. Leadership: appointing a senior manager responsible for promoting support for women in business;
2. Action: developing and implementing financial and non-financial products tailored to women entrepreneurs;
3. Data: collecting and analyzing sex-disaggregated information.

On October 25, 2024, the Governor of the National Bank of the Kyrgyz Republic, Melis Turgunbaev, and the EBRD Vice-President for Policy Cooperation and Partnerships, Mark Bowman, officially signed a memorandum of understanding on cooperation to implement a women entrepreneurs financing program in Kyrgyzstan. Consequently, the National Bank of the Kyrgyz Republic joined and led the Coalition, taking responsibility for:

• collection and regular updating of sex-disaggregated data;
• publication of gender-disaggregated data;
• development of a standard reporting template for gender data.

In June 2025, the National Bank of the Kyrgyz Republic adopted a resolution stimulating commercial banks to lend more actively to women-owned businesses by easing regulatory requirements. The changes, aimed at facilitating access to credit for women entrepreneurs and incentivizing financial institutions to issue loans, included:

• Expanded collateral-free lending, increasing exception limits for blank loans to address the lack of collateral, a key barrier for women entrepreneurs at early business stages;
• Reserve requirements have been reduced: a provision has been introduced allowing financial institutions to create lower provisions for potential losses and impairments (loan loss provisions) on loans issued under programs aimed at supporting the development of women’s entrepreneurship. This measure directly reduces the cost of risk for banks, increases the profitability of such loan products, and frees up capital for further lending.

 

Official Launch of the WE Finance Code

On July 4, 2025, the global initiative Women Entrepreneurs Finance Code (WE Finance Code) was officially launched in Bishkek. The signing ceremony was attended by the Governor of the National Bank Melis Turgunbaev, the EBRD Regional Head for the Kyrgyz Republic, Tajikistan, and Turkmenistan Ayten Rustamova, Deputy Minister of Economy and Commerce of the Kyrgyz Republic Sanjar Bolotov, representatives of the financial sector, and women entrepreneurs.

At the time of the launch, ten leading financial institutions officially joined the Code, including seven commercial banks, two microfinance organizations, and OAO “Guarantee Fund.” The Union of Banks of Kyrgyzstan provided organizational support and coordinated participant engagement.

Following the launch of the Code, the National Bank of the Kyrgyz Republic, as the head and national aggregator, together with the Union of Banks of Kyrgyzstan, as the national coordinator, will establish the Coalition, which will consist of the NBKR and the financial and credit sector. Other financial institutions that sign the Coalition’s commitment letters will also join the Coalition. In doing so, they will undertake to support women entrepreneurs, including through the development of specialized products. Subsequently, a Charter (Coalition Statute) with a plan for the implementation of the Code will be developed.

The launch of the WE Finance Code represents a strategic step toward building a more inclusive and robust economy in Kyrgyzstan, where every woman can realize her entrepreneurial potential.

Why This Is Important for Kyrgyzstan?

Statistics show that the potential of women’s entrepreneurship in the country remains underdeveloped. According to the National Statistical Committee of the Kyrgyz Republic, as of 2024:

• 29% of all active enterprises are women-led (more than 216,000 companies);
• The number of women in business has steadily grown over the past five years;
• Women are particularly active in medium-sized businesses, where their share reaches 47.6%.

Significant regional disparities exist: in Bishkek and Chui region, women-led businesses account for over 35%, while in some regions, such as Batken, the share barely reaches 21%.

The WE Finance Code aims to equalize these opportunities nationwide. As a result, a strong Coalition of government bodies, banks, business associations, and international partners is expected to be formed to provide coordinated support to women.

Additionally, systematic collection of precise data will begin to understand the challenges faced by women entrepreneurs and their product needs. Banks will then be incentivized to develop specialized loan programs and advisory services for women. The Code will also facilitate access to favorable international financing for women-led business projects.

Situation After the Official Launch of the WE Finance Code

Within four months of the Code’s official launch, 10 more financial institutions joined the Coalition (OAO “Mbank,” ZAO “FINCA Bank,” OAO “Dos-Kredobank,” ZAO “Bank Azii,” Association of Microfinance Organizations, LLC MCC “Universal Credit,” LLC MCC “Elfinance,” LLC MCC “Amanat Credit,” LLC MCC “Bir Top,” and ZAO MFI “Alma Credit”).

On 26 November 2025, the first meeting of the Coalition participants was held at the premises of the Union of Banks of Kyrgyzstan, during which:

• the National Bank of the Kyrgyz Republic introduced and welcomed new signatory participants;
• the draft text of the Coalition Charter presented by the National Bank of the Kyrgyz Republic was discussed. No comments or proposals were submitted by the signatories representing financial institutions. As a result, it was decided that the NBKR would make technical revisions and, following approval by the NBKR Management, circulate the approved version of the Coalition Charter to all participants;
• the meeting also included monitoring of the signatories’ commitments based on the submitted implementation reports, as well as a discussion of the progress assessment. As the commitments of some signatories were formulated in a general manner, it was proposed that they be further specified in more detail;
• the participants agreed to meet at least once every six months. It was decided to review the progress of commitments’ implementation as of 1 April and 1 October each year;
• the Coalition’s work plan for 2026 was discussed.

In December 2025, OAO “O!Bank” also joined the Coalition. By the end of 2025, the total number of WE Finance Code Coalition participants in Kyrgyzstan, excluding the National Bank and the Union of Banks of Kyrgyzstan, reached 21. Notably, commercial banks that are members of the Coalition account for 92.4% of total banking sector assets, while microfinance organizations in the Coalition represent 19.2% of total microfinance sector assets.

On 24 December 2025, the National Bank of the Kyrgyz Republic introduced amendments to regulatory banking reporting. The amendments provide for additions to the regulatory reporting of commercial banks aimed at collecting information on green banking products and gender-disaggregated data. These changes will take effect on March 1, 2026, enabling the National Bank to collect and update sex-disaggregated data, analyze the information, and publish it on its official website dashboard.

 

In 2026, the established Coalition and the implemented initiatives of the WE Finance Code will create new opportunities for women entrepreneurs across the country, strengthening financial inclusion and laying the foundation for sustainable economic growth in the Kyrgyz Republic.