Since a significant part of savings and settlements in Kyrgyzstan is (traditionally) made in cash, the Government regards offering the opportunity to buy and sell gold through legally compliant channels as one of the ways to popularize the investments in the official economy.
Specifically for this reason, the National Bank of the Kyrgyz Republic has been for several years running a program of selling gold bars to anyone interested (residents or non-residents) at the current market price, with a guaranteed buyback (at the market price on the buyback date).
To support the legal market of gold the Government has greatly liberalized the regulation of transactions with physical gold and ownership of gold bars, which is unique for the region.
Any person (resident or non-resident of the Kyrgyz Republic) is free to buy gold bars and own them. Exporting them from Kyrgyzstan is not difficult — they just have to be declared at the customs. No customs duty is charged.
Transactions with physical gold are exempt from the VAT (unlike in Russia, for example).
Gold bars can also be bought through commercial banks having a precious metals trading license.
A combination of the very liberalized gold market with the total absence of capital flow restrictions and exchange controls has made it possible to launch a service whereby investors may purchase gold in non-physical form (Eg. through exchange-traded forward contracts) in Kyrgyzstan and receive the delivery of their gold bars in a different country, where they would want to store it.
Issue of gold-backed bonds is possible in Kyrgyzstan, and such securities can be redeemed by delivery of physical gold.
The local Kara-Balta Plant is a certified facility to manufacture LGD (London Good Delivery) gold bars.