Sale & purchase of state treasury bills and bonds

State treasury bills are short-term, discounted state securities (with circulation terms 3, 6, 12 months), issued by the Ministry of Finance of the Kyrgyz Republic in non-documented form. The nominal value of one such bill is equal to 100 som.

State treasury bonds – long-term state securities (with circulation term 2 and 5 years) with interest yield (coupon), issued by the Ministry of Finance of the Kyrgyz Republic. The nominal value of one such bond is defined by the Issuer at the time of the issuance.

Municipal bonds – issued by the local city authorities in the form of a loan against municipal property in order to attract free cash to address socio-economic issues in the city. The nominal value of one bond is 100 som. The interest rate on a municipal bond is 7% per annum.
Municipal bonds are secured by the income from the lease of municipal land, from tax and non-tax revenues to the city hall budget.

The legislation of the Kyrgyz Republic stipulates that should the issuance of the bonds is recognised as failed, the issuer is obliged to reimburse to the bond holder its face value and interest.