Regulatory Alerts2017-02-22 | 127050Regulation on Certain Transactions/Operations of Commercial Banks and Microfinance Companies of the Kyrgyz Republic with Real Estate
The National Bank of the Kyrgyz Republic issued this regulation to establish strict requirements for commercial banks and microfinance companies regarding the acquisition, valuation, and disposal of real estate obtained through debt settlement or held for sale. The document mandates a maximum three-year holding period for such assets, requiring active sales programs, regular fair value assessments by independent appraisers, and detailed reporting to the Board of Directors. It further enforces rigorous accounting standards, prohibits profit-driven improvements, and imposes specific governance and disclosure obligations for transactions involving affiliated parties to mitigate risk and ensure regulatory compliance.
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