BAKAI has received a license to open a branch in Hong Kong. This is a landmark event for the banking sector of Kyrgyzstan and the region as a whole: BAKAI will become the first bank in Central Asia with its own branch in one of the world’s leading financial centers. Timur Ibragimov, Chairman of the Management Board of BAKAI, discusses what this achievement means for the country and the new opportunities it creates for businesses.

Mr. Ibragimov, why is opening a branch in Hong Kong important for Kyrgyzstan?

A Kyrgyz bank is entering one of the largest financial centers in the world. For our country, this is a very important step. We are creating a direct link between Kyrgyzstan’s banking market and the international financial infrastructure in Asia.

Behind this is a specific goal: to give entrepreneurs more opportunities to work with foreign partners. Companies need convenient payments, supply chain financing, and banking support for their transactions. Having our own branch in Hong Kong will allow us to develop these services in one of the key hubs of international trade.

It’s important to me that entrepreneurs see the significance of this milestone in their day-to-day work. We will measure our success by the value we deliver to our clients.

Why did you choose Hong Kong specifically?

Hong Kong holds an important place in international trade and connects the Chinese market with the rest of the world. It has a well-developed financial infrastructure that companies use for payments and trade finance.

For BAKAI, it is the right platform to support Kyrgyz businesses working with China and other Asian countries. Having our own presence allows us to build relationships with partners on the ground and develop services tailored to our clients’ needs.

We see Hong Kong as a base for operating in Asian markets. Through the branch, we plan to support the financial side of import and export transactions.

What specifically will change for entrepreneurs once the branch is launched?

We plan to expand our international payment capabilities and offer trade finance and documentary operations, including letters of credit. Support for import and export transactions is a separate focus area. We will also develop new international payment services.

Take a typical scenario: a company from Kyrgyzstan is purchasing equipment from a foreign supplier. It needs to agree on payment terms, make the payment, and arrange financing for the purchase. We aim to offer banking tools that will help structure the financial side of such a transaction.

An exporter has different needs: receiving payment for its goods and setting up payment arrangements with the buyer. That’s why, when selecting solutions, we will take into account the terms of each specific contract.

What do trade finance and letters of credit offer businesses?

Trading businesses face a clear challenge: paying for goods before their sale generates revenue. Trade finance helps meet that need. For a company, it’s an opportunity to plan deliveries around payment terms and the timing of incoming funds.

Documentary operations, including letters of credit, help the parties agree in advance on payment terms and document requirements. This is important when working with a foreign partner, where the buyer and supplier need to agree on how payment will be made.

We plan to offer these tools to businesses. The choice of a specific solution will depend on the terms of the contract and the company’s needs.

Who will the Hong Kong branch serve? Will services be available to individual clients?

The branch will serve businesses. We do not plan to serve individuals in Hong Kong. We will focus the branch’s operations on international trade and related financial services.

First and foremost, this means companies that work with China and other Asian countries. We also see opportunities for entrepreneurs who are just preparing to enter these markets.

Obtaining the license is an important milestone, and the launch of the branch comes next. The services we’re discussing are part of our plans for after the opening. Our priority is to make sure they’re ready to meet the real needs of businesses.

What do you consider the most important outcome for the bank and for the country?

The main outcome is new opportunities for companies from Kyrgyzstan. We aim to help entrepreneurs work with foreign suppliers, finance trade operations, and grow their exports. Clients will be able to rely on a bank that understands their business in Kyrgyzstan and has its own presence in Asia.

Opening the branch gives BAKAI the foundation for this work. We intend to use it to help clients expand their business relationships and enter new markets. For Kyrgyzstan, the value of this step will lie in the specific contracts, deliveries, and projects that businesses will be able to carry out.