IDEAS home Printed from https://ideas.repec.org/p/imf/imfscr/2026-164.html

Kyrgyz Republic: Selected Issues

Author

Listed:
  • International Monetary Fund

Abstract

This Selected Issues paper assesses the effective monetary stance in the Kyrgyz Republic amid persistent excess liquidity, rapid household credit growth, and elevated inflation pressures. It constructs a monthly Financial Conditions Index that captures liquidity conditions, market rates, monetary aggregates, credit dynamics, and external financial factors. Credit growth has outpaced nominal GDP, with households relying more heavily on short-term consumer loans and mortgages. Credit expansion has been accompanied by a rapid buildup of excess liquidity, which is sterilized primarily through short-term instruments. The results point to a marked easing in financial conditions since early 2024, driven by strong credit and monetary expansion and declining market rates, despite a relatively tight policy rate. Neutral rate estimates and the real policy rate gap corroborate those monetary conditions have at times remained accommodative in real terms, underscoring the need to complement interest-rate policy with stronger liquidity management, improved corridor operations, and targeted macroprudential tools to safeguard price stability.

Suggested Citation

  • International Monetary Fund, 2026. "Kyrgyz Republic: Selected Issues," IMF Staff Country Reports 2026/164, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2026/164
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=577452
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfscr:2026/164. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.