Regulation on Licensing, Reorganization and Liquidation of Microfinance Companies in the Kyrgyz Republic

Registered in the Ministry of Justice of the Kyrgyz Republic March 5, 2007. Registration number 27-07

	Approved by Resolution of the Board of the National Bank of the Kyrgyz Republic dated January 31, 2007 No. 5/1

REGULATION on licensing, reorganization and liquidation of microfinance companies in the territory of the Kyrgyz Republic

(In the edition of the Resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4, April 25, 2012 No. 18/9 , July 11, 2012 No. 29/5, February 13, 2013 No. 4/2,December 24, 2014 No. 58/16, March 11, 2015 No. 16/2*, October 14, 2015 No. 62/1 )

This Regulation is developed in accordance with the Civil Code of the Kyrgyz Republic, Laws of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic", "On the National Bank of the Kyrgyz Republic", "On Banks and Banking Activity in the Kyrgyz Republic" and defines the procedure for the creation and licensing of microfinance companies.

1. General Provisions

1.1. A microfinance company is a specialized financial and credit institution created in the form of a joint-stock society and carrying out micro-lending to specific categories of legal and natural persons using its own and attracted funds, including funds of donor organizations, local and international financial organizations, and other types of operations provided for by the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic" (hereinafter referred to as the Law "On MFO"), including the attraction of term deposits from individuals and legal entities in accordance with the Law "On MFO".

1.2. Microfinance activity is the activity of microfinance organizations in providing microcredits in accordance with the Law "On MFO".

1.3. A microcredit is monetary funds provided by a microfinance organization to individuals or communities created by them, and legal entities in accordance with the charter of the microfinance organization.

2. Procedure for the creation of microfinance companies

2.1. A microfinance company (hereinafter referred to as MFC) is created as an open or closed joint-stock society and carries out its activities based on a charter and a license, in accordance with the requirements of the legislation of the Kyrgyz Republic.

(In the edition of the Resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)*

2.2. An MFC acquires the status of a legal entity from the moment of state registration in the justice authorities in accordance with the legislation of the Kyrgyz Republic.

2.3. The founders of an MFC may be legal and natural persons - residents or non-residents of the Kyrgyz Republic, provided that:

1) the share of a legal entity (except for persons meeting the requirements of this Regulation) together with the share of any other legal entity controlling it, controlled by it or under common control with it, may not exceed 20 percent of the voting shares of the MFC.

Microcredit companies (hereinafter referred to as MCCs), reorganized into MFCs, must bring their activities into compliance with this requirement within one year from the date of registration in the justice authorities as an MFC;

2) a legal entity meeting the criteria according to Appendix 1 to this Regulation may own more than 20 percent of the voting shares of the MFC.

2.4. Founders - legal entities must be registered in the manner established by legislation, have a stable financial position and fulfill their obligations to pay taxes and payments equivalent to them, for at least the last two years (for founders - legal entities working for more than three years).

2.5. The authorized capital of an MFC is formed only in the national currency from the monetary funds of the founders and serves as collateral for the obligations of the MFC.

The formation of authorized capital from fixed assets and intangible assets is prohibited.

The basis of the MFC's capital is fully paid-up authorized capital. The capital includes only such authorized capital for which the MFC has no obligations to return funds invested by its founders (shareholders).

2.6. The minimum authorized capital of an MFC is set at:

• 10 million soms - for MFCs not carrying out operations on the acceptance of term deposits from individuals and legal entities;

• 50 million soms - for MFCs carrying out operations on the acceptance of term deposits from individuals and legal entities.

The minimum size of the authorized capital of a newly created MFC is set at not less than 50 million soms.

An MFC applying for a license to accept term deposits from individuals and legal entities must have a minimum authorized capital size of not less than 100 million soms. This requirement also applies to MCCs, MCA (microcredit agencies) and credit unions reorganizing into MFCs.

(In the edition of the Resolution of the Board of the National Bank of the KR of July 11, 2012 No. 29/5)*

3. Features of licensing of MFCs

3.1. To carry out its activities, an MFC is obliged to obtain a license from the National Bank for the right to carry out banking operations (hereinafter referred to as the license).

3.2. An MFC may carry out the following separate banking operations subject to restrictions established by the National Bank of the Kyrgyz Republic (hereinafter referred to as the National Bank), provided that such operations are specified in the license, except for the operation of financial leasing:

1) issuance of secured and unsecured microcredits;

2) acceptance of term deposits from individuals and legal entities on a repayable basis for the purpose of accumulating client savings;

3) purchase and sale of debt obligations (factoring);

4) (lost force in accordance with the Resolution of the Board of the National Bank of the KR of February 13, 2013 No. 4/2)

(In the edition of the Resolution of the Board of the National Bank of the KR of February 13, 2013 No. 4/2)*

3.3. At the time of submitting documents for obtaining consent for state registration of a legal entity, the founders of an MFC are obliged to deposit the minimum size of the authorized capital according to paragraph 2.6 of this Regulation into a savings account opened in a commercial bank of the Kyrgyz Republic. Funds located in the savings account cannot be used by founders for any purposes until a license is obtained.

The requirement to deposit the minimum size of the authorized capital into a savings account in a commercial bank does not apply to MCCs, MCA and credit unions reorganizing into MFCs and having capital in the amount established in paragraph 2.6 of this Regulation for a newly created MFC. If the size of their capital is less than the size established in paragraph 2.6 of this Regulation for a newly created MFC, then its founders must deposit the missing amount into a savings account in a commercial bank.

The National Bank must conduct a special check of the formation of the authorized capital of the MCC, confirming compliance with the National Bank's requirement for the minimum size of the authorized capital.

(In the edition of the Resolution of the Board of the National Bank of the KR of July 11, 2012 No. 29/5)*

3.4. During the first two years from the start of its activities, an MFC cannot obtain the right to carry out operations on the acceptance of term deposits from individuals and legal entities, except in cases:

1) when a person established as a credit union in accordance with the Law of the Kyrgyz Republic "On Credit Unions" has been actively working, accepting deposits on a mutual basis and issuing loans for two years prior to the application, changes its organizational and legal form to a joint-stock society for the purpose of obtaining a license as an MFC. In this case, the National Bank must ensure that in essence this is the same entity that was carrying out activities earlier;

2) when a person established as an MCC or microcredit agency (hereinafter referred to as MCA) has worked for two years on the basis of a certificate issued by the National Bank and meets the qualification and other requirements of the National Bank for obtaining a license.

3.5. Financial and credit institutions meeting the requirements of paragraph 3.4 of this Regulation do not have the right to carry out operations on the acceptance of term deposits from individuals and legal entities if:

1) they are declared insolvent (bankrupt) and subject to liquidation and/or reorganization;

2) preventive measures and sanctions of the National Bank have been applied to them, as well as other violations of regulatory acts of the National Bank;

3) there is a court decision prohibiting engagement in this type of activity;

4) they do not meet the requirements of the National Bank for obtaining a license for the right to carry out activities on the acceptance of term deposits (1).

3.6. Until a license is obtained, any activity as an MFC is prohibited, except for organizational activities related to the establishment of an MFC.

3.7. In the event of the reorganization of an MCC into an MFC, the MCC may continue its activities until the moment of obtaining the National Bank's license.

3.8. State authorities and management bodies and their officials are prohibited from interfering in any form in the resolution of issues related to the activities of an MFC, except for cases established by the legislation of the Kyrgyz Republic.

3.9. Founders of an MFC are prohibited from acquiring shares at their primary issuance at a price below nominal.

3.10. An MFC is prohibited from participating in all "gambling" types of activities, including the organization and conduct of draws and cash and prize lotteries, including the conduct of cash and prize lotteries in the premises of an MFC or their advertising.

3.11. It is not allowed to use as a name designations identical or similar to the extent of their confusion with the names of previously created or being created financial and credit institutions in the territory of the Kyrgyz Republic.

4. Documents submitted to the National Bank for obtaining a license

4.1. To prepare the necessary documents for the creation of an MFC, its founders determine an authorized person for contact with the National Bank on issues of document consideration (hereinafter referred to as the authorized person).

4.2. To obtain consent for state registration of a legal entity (MFC) in the Methodology and Licensing Supervision Department (hereinafter - MLSD), the following documents must be submitted in two copies:

1) an application for the issuance of a letter of consent. For legal entities, the application for the issuance of a letter of consent must be signed by the Chairman of the Board of Directors, or another person authorized by the meeting of founders (Appendix 2);

2) a notarized copy of the decision of the founder or the protocol of the general meeting of founders/shareholders (if there is more than one founder), containing the decision on the creation of an MFC/reorganization into an MFC, adoption of the charter and appointment of MFC management bodies;

3) a founding agreement with notarized signatures of founders. An approximate list of issues that need to be reflected in the founding agreement is given in Appendix 3;

4) the original charter of the MFC with a notarized signature of the head of the MFC. An approximate list of issues that should be contained in the charter is given in Appendix 4;

5) information on the shareholders of the MFC (Appendix 5);

6) a business plan, including issues given in Appendix 6;

7) information on the general organizational structure of the MFC;

8) a list of officials of the MFC, as well as questionnaires and information confirming their compliance with the minimum qualification requirements established by the National Bank(2);

9) a document confirming the deposit of funds as the authorized capital of the MFC into a savings account in a commercial bank;

10) financial reports for the two previous years (founders of the MFC (legal entities)), with the financial report for the last reporting year confirmed by an audit organization's opinion;

11) information allowing to determine the sources of origin of monetary funds contributed by founders/participants (shareholders) to the authorized capital of the MFC in an amount of more than 1% of the minimum size of the authorized capital established by the National Bank for a newly created MFC not carrying out operations on the acceptance of term deposits from individuals and legal entities:

a) by legal entities:

• copies of the balance sheet and profit and loss statement for the last financial year, confirmed by authorized bodies of the Kyrgyz Republic or;

• copies of financial statements for the last financial year, declarations or other documents on financial status;

• a copy of the audit opinion (in case this requirement is established by legislation);

• other documents confirming the sources of origin of monetary funds contributed to the authorized capital, not prohibited by legislative acts of the Kyrgyz Republic;

b) by individuals:

• certificates, income declarations, sales/gift contracts, right to inheritance of sums, property, etc.

• other documents confirming the sources of origin of monetary funds contributed to the authorized capital, not prohibited by legislative acts of the Kyrgyz Republic.

Copies of submitted documents must be notarized.

At the request of the National Bank, MFCs must submit information (documents) confirming the sources of origin of monetary funds contributed to the authorized capital regardless of the conditions established in paragraph 1 of this sub-paragraph».

(In the edition of the Resolution of the Board of the National Bank of the KR of April 25, 2012 No. 18/9, December 24, 2014 No. 58/16)

4.3. To obtain a letter of consent in the event of foreign investors participating in the capital of an MFC, in addition to the documents listed in paragraph 4.2 of this Regulation, the following documents legalized in the established manner are provided:

1) by legal entities - non-residents:

• a document certifying registration as a legal entity;

• a decision of the relevant body on participation in the creation of an MFC in the territory of the Kyrgyz Republic;

• a charter and financial statements prepared in accordance with international accounting practices for the two previous years;

• an opinion of an audit organization on the financial position as of the last reporting date or other information confirming the financial well-being of this person;

• information regarding the supervisory regime to which it is subject, including written confirmation from the supervisory body of the country of origin (registration) of the foreign legal entity that the applicant is authorized to carry out financial, banking or other activities, and the readiness of the supervisory body to cooperate with the National Bank on a permanent basis;

2) by individuals - non-residents:

• a copy of a passport or another document certifying identity;

• documents confirming financial well-being.

(In the edition of the Resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)*

4.4. To obtain a license, the MFC must submit the following documents to the MLSD in two copies:

1) an application for the issuance of a license. For legal entities, the application for the issuance of a license must be signed by the Chairman of the Board of Directors, or another person authorized by the meeting of founders (Appendix 2);

2) the original and a notarized copy of the founding agreement, registered in the justice authorities;

3) the original and a notarized copy of the charter, registered in the justice authorities;

4) a copy of the certificate of state registration;

5) a document confirming the payment of the fee for the issuance of a license.

4.5. An MFC applying for a license for the right to accept term deposits from individuals and legal entities, at least one year before submitting an application for a license for the right to accept term deposits, must submit a letter of commitment to the National Bank confirming the MFC's intention to submit an application to the National Bank for a license for the right to accept term deposits(3).

4.6. To obtain a license for the right to carry out operations on the acceptance of term deposits from individuals and legal entities, the following documents are submitted to the MLSD in two copies:

1) an application for the issuance of a license for the right to attract term deposits from individuals and legal entities;

2) the original or a notarized copy of the decision of the founder or the protocol of the general meeting of shareholders, containing the decision on the implementation of the acceptance of term deposits from individuals and legal entities;

3) a notarized copy of the charter of the MFC providing for the implementation of operations on the attraction of term deposits from individuals and legal entities;

4) a business plan developed taking into account the implementation of operations on the attraction of term deposits from individuals and legal entities;

5) information on the organizational structure of the MFC;

6) a document confirming the deposit of funds as the authorized capital of the MFC into a savings account in a commercial bank (according to paragraph 2.6 of this Regulation);

7) an opinion of an audit organization on the financial position of the founders or other information confirming their financial well-being;

8) a document confirming the payment of the license fee in the amount and in the manner established by the legislation of the Kyrgyz Republic.

(In the edition of the Resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)*

4.7. The National Bank conducts an inspectorate check of the MFC's activities within a period of not more than three months before the end of the annual transition period, determined in accordance with the letter of commitment of the MFC applying for a license for the right to attract term deposits from individuals and legal entities.

4.8. Founding documents for the creation of an MFC submitted to the National Bank in accordance with this Regulation, containing more than one sheet, must be described sheet by sheet, bound, numbered and signed by the authorized person. Signatures of founders - legal entities are certified by the seal of the legal entity. Signatures of founders - natural persons are certified by a notary.

4.9. In the event of withdrawal of the application and documents for obtaining a license, or refusal to issue a license, one copy of the documents submitted by the founders of the MFC is not returned.

4.10. MFCs meeting the requirements of paragraph 2 of Article 16 of the Law "On Microfinance Organizations in the Kyrgyz Republic" and sub-paragraph 3.4 of this Regulation, submit to the National Bank an application of intent to obtain a license for the right to accept term deposits, with simultaneous submission of documents provided for by Article 15 of the Law "On Microfinance Organizations in the Kyrgyz Republic" and paragraph 4.6 of this Regulation.

(In the edition of the Resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)*

4.11. The MLSD considers the received documents within a period not exceeding thirty calendar days from the moment of their receipt. The period for considering documents may be extended by the Deputy Chairman of the National Bank supervising the MLSD by ten calendar days.

(In the edition of the Resolutions of the Board of the National Bank of the KR of June 16, 2010 No. 49/4, April 25, 2012 No. 18/9)

5. Procedure for considering documents for obtaining a license

5.1. Before signing the founding agreement, the authorized person for the creation of an MFC may preliminarily agree with the National Bank on the proposed full and abbreviated name of the MFC.

5.2. The MLSD considers the submitted documents for the creation of an MFC within a period not exceeding thirty calendar days from the moment of their receipt. The period for considering documents may be extended by the Deputy Chairman of the National Bank supervising the MLSD by ten calendar days.

(In the edition of the Resolution of the Board of the National Bank of the KR of April 25, 2012 No. 18/9)*

5.3. In the event of non-compliance of documents with the requirements of the legislation of the Kyrgyz Republic and this Regulation and/or submission of an incomplete package of documents, they are returned to the authorized person with an attached written reasoned refusal. In this case, one copy of the documents submitted by the founders of the MFC is not returned. The counting of the period for considering documents begins from the day of receipt of the package of documents meeting the requirements of the National Bank.

5.4. After considering the documents listed in paragraphs 4.2-4.3 of this Regulation, the MLSD prepares a conclusion on consent for state registration (re-registration) of a legal entity as an MFC, which must contain the following information:

• the period for considering documents;

• compliance of founding documents with the legislation of the Kyrgyz Republic;

• analysis of the financial stability and reputation of the founders of the MFC;

• distribution of shares in the authorized capital among founders;

• brief analysis of the business plan;

• compliance of the proposed officials of the MFC with the requirements imposed by the National Bank;

• a conclusion that the creation of a new MFC will not lead to a monopoly in the market.

5.5. In case of a positive decision on the issuance of a license to the MFC, the National Bank issues a letter of consent for the registration (re-registration) of the MFC in the justice authorities in accordance with the requirements established by the legislation of the Kyrgyz Republic.

5.6. As an appendix to the letter of consent, the National Bank issues one copy of the submitted founding documents to the MFC.

5.7. The National Bank has the right to suspend or withdraw the preliminarily issued consent to the registration of an MFC for the following reasons:

1) if changes occurred in the financial or legal position of the applicant that gave rise to grounds for withdrawing preliminary consent to the opening of an MFC;

2) if unreliable information about the founders and officials of the MFC was revealed during the verification process.

The National Bank must notify the MFC in writing of the grounds for refusal to issue preliminary permission to obtain a license.

5.8. After obtaining a certificate of state registration (re-registration) of a legal entity as an MFC, the authorized person submits a copy of the certificate to the MLSD along with the founding documents.

5.9. A license is issued within five working days after submission of a copy of the certificate of state registration (re-registration) and all necessary documents, as well as documents confirming the payment of the fee for consideration and issuance of a license in the amount established by the legislation of the Kyrgyz Republic.

5.10. The license is signed in three copies by the authorized person of the National Bank (Appendix 7).

An integral part of the license is the sheet of restrictions on the conduct of separate banking operations (Appendix 8).

One copy of the license is issued to the Chairman of the Board of Directors of the MFC or another authorized person of the MFC, which is confirmed by his signature.

Two copies of the license and all documents submitted by the MFC are stored in the MLSD.

5.11 USMLE maintains a register of MFCs (hereinafter referred to as the register).

6. Procedure for acquiring more than 20 percent of voting shares of an MFC

6.1. To acquire more than 20 percent of the voting shares of an MFC, a legal entity (meeting the criteria specified in Appendix 1 of this Regulation) must obtain prior permission from the National Bank.

6.2. To obtain permission to acquire more than 20 percent of the voting shares of an MFC, the following documents must be submitted to the National Bank:

• an application for the acquisition of more than 20 percent of voting shares;

• a decision of the relevant (authorized) body of the legal entity regarding the acquisition of MFC shares;

• documents confirming that the legal entity meets the criteria specified in Appendix 1 of this Regulation.

6.3. The National Bank, within thirty working days from the date of receipt of the application for the acquisition of 20 percent of the voting shares of an MFC, sends a letter to the MFC regarding consent or refusal to acquire the shares.

6.4. The National Bank may request additional information necessary for considering the petition for the acquisition of more than 20 percent of the voting shares of an MFC.

In the event of any additional acquisition of voting shares of an MFC, the legal entity must submit a written application and obtain prior permission from the National Bank.

In the event of the acquisition by foreign investors of a package of MFC shares granting the right to exercise direct or indirect control in accordance with the Law "On MFOs", or in the event of additional acquisition of MFC shares, as a result of which foreign investors become direct or indirect owners of a controlling package of shares (i.e., acquisition of more than 50%), legalized documents in the established manner must be submitted in accordance with paragraphs 4.3 and 4.4 of this Regulation thirty days prior to the anticipated date of share acquisition.

7. Opening of branches and representative offices

7.1. An MFC may open separate subdivisions (branches and representative offices), the activities of which are carried out in accordance with the legislation of the Kyrgyz Republic.

7.2. A branch of an MFC is its separate subdivision that is not a legal entity, located outside its place of registration, and carrying out all and/or part of the operations based on the regulation on the branch, and acting within the powers granted to it by the MFC. Information about the branch of the MFC (including its location) must be contained in the charter of the MFC.

7.3. A branch has a single authorized capital, balance sheet, and name with the MFC, with the addition of the word "branch" to the name of the MFC.

7.4. The head of the branch is appointed by the authorized body of the MFC and acts based on a power of attorney issued in the established manner. The power of attorney must list the types of operations and other actions for which the head of the branch is authorized to act on behalf of the MFC.

7.5. An MFC opens its branches within the territory of the Kyrgyz Republic in compliance with all requirements of the legislation of the Kyrgyz Republic within thirty days from the moment of notification to the National Bank.

The following documents are submitted to USMLE for the opening of a branch:

1) notification of the opening of a branch (Appendix 9);

2) a decision of the relevant body of the MFC to open a branch;

3) a regulation on the branch, which must at least specify the goals of creating the branch, the list of banking operations delegated to the branch, the scale and nature of planned operations, and the powers and functions of the head of the branch;

4) a copy of the personal personnel records of the head and chief accountant of the branch(4);

5) a power of attorney signed by the head of the MFC and sealed with the seal of the MFC, issued to the head of the branch, specifying the operations and transactions for which he is authorized.

7.6. After the accounting registration of the branch in the justice authorities, the MFC is obliged within five working days from the date of registration to submit to USMLE the following documents in one copy:

1) a regulation on the branch with a note on the title page regarding the completion of accounting registration;

2) a copy of the certificate of accounting registration, certified with the seal of the MFC;

3) the original or a notarized copy of the charter that has undergone registration in the justice authorities.

7.7. Within three working days from the date of submission of the documents specified in paragraph 7.6 of this Regulation and the corresponding notification letter by the MFC, USMLE:

1) enters a record into the register of MFC branches;

2) sends a letter to the MFC regarding the entry of the record into the register of MFC branches;

3) sends a letter to the regional institutions of the National Bank regarding the opening of the MFC branch, indicating the surname of the head and chief accountant of the branch.

7.8. A decision to close an MFC branch is made by the relevant authorized body of the MFC. In this case, the MFC provides to the National Bank a copy of the order of the Ministry of Justice of the Kyrgyz Republic (its territorial bodies) on entering information into the register of branches regarding the cessation of the branch's activities, as well as a notification letter.

7.9. Based on the notification letter and copy of the order provided by the MFC, USMLE enters a record into the register of MFC branches regarding the closure of the branch.

7.10. A representative office of an MFC is its separate subdivision that is not a legal entity, carrying out the protection and representation of the interests of the MFC, as well as concluding transactions and other lawful actions on behalf of the MFC based on the regulation on the representative office, with the exception of accepting deposits, issuing microcredits, and conducting other operations requiring the acquisition of a banking license in accordance with the legislation of the Kyrgyz Republic.

A representative office has a single balance sheet with the MFC, as well as a name that fully coincides with the name of the MFC, with the addition of the word "representative office".

7.11. An MFC opens its representative office within the territory of the Kyrgyz Republic in compliance with all requirements of the legislation of the Kyrgyz Republic within thirty days from the moment of notification to the National Bank.

7.12. To open its representative office within the territory of the Kyrgyz Republic and abroad, the MFC provides the following documents to USMLE in one copy:

1) notification of the opening of a representative office (Appendix 10);

2) a decision of the relevant body of the MFC to open a representative office;

3) a regulation on the representative office, which, in addition to the name and location, must specify the goals of creating the representative office and the types of activities that the representative office may engage in;

4) information about the head (personal personnel record).

7.13. After the accounting registration of the representative office in the justice authorities, the MFC must, within five working days from the date of registration, submit to the National Bank the following documents in one copy:

1) a regulation on the representative office with a note on the title page regarding the completion of accounting registration;

2) a copy of the certificate of accounting registration, certified with the seal of the MFC;

3) the original or a notarized copy of the charter that has undergone registration in the justice authorities.

7.14. Within three working days from the date of submission of the documents specified in paragraph 7.13 of this Regulation and the corresponding notification letter by the MFC, USMLE:

1) enters a record into the register of MFC representative offices;

2) sends a letter to the MFC regarding the entry of the record into the register of MFC representative offices;

3) sends a letter to the regional institutions of the National Bank regarding the opening of the MFC representative office, indicating the surname of the head of the representative office.

7.15. After adopting a decision to close the representative office and completing the corresponding liquidation procedure of the representative office in the justice authorities, the MFC is obliged to notify USMLE of the adopted decision (Appendix 10), as well as attach a copy of the order of the Ministry of Justice of the Kyrgyz Republic (its territorial bodies) on entering information into the register of representative offices regarding the cessation of the representative office's activities, within five working days.

7.16. Based on the documents provided by the MFC, USMLE enters a record into the register of MFC representative offices regarding the closure of the representative office.

8. Grounds for refusal to issue a license

8.1. The National Bank may refuse to issue a license for any of the following reasons:

1) non-compliance of the charter or other documents submitted for obtaining a license with the requirements established by the legislation of the Kyrgyz Republic;

2) submission of documents in an incomplete volume established by the legislation of the Kyrgyz Republic. Upon elimination of the specified obstacles, the documents are considered on general grounds;

3) if changes have occurred in the financial or legal status of the applicant since the moment of issuance of the preliminary consent of the National Bank for registration, which may serve as grounds for refusing to issue a license;

4) non-compliance of the officials of the MFC with the minimum qualification requirements established by the National Bank(5);

5) non-compliance of the size, structure, and source of formation of the minimum authorized capital with the requirements of the legislation of the Kyrgyz Republic;

6) non-payment of the minimum size of the authorized capital at the time of registration;

7) submission of documents for obtaining a license containing unreliable information or data;

8) non-payment of the fee for issuing a license;

9) existence of a court decision regarding the applicant prohibiting him from engaging in this type of activity;

10) on other grounds provided for by the legislation of the Kyrgyz Republic.

8.2. USMLE must notify the authorized person in writing of the grounds for refusal to issue a license.

9. Coordination of changes and additions after obtaining a license

9.1. Changes and additions to the charter documents of the MFC, documents submitted for obtaining a license, as well as changes in the composition of the management bodies of the MFC are subject to prior approval by the National Bank.

Prior approval by the National Bank is also subject to the acquisition of a large package of shares (five percent or more).

9.2. Changes and additions to the charter documents may not be approved by the National Bank in the following cases:

1) in the presence in the proposed changes and additions to the charter documents of grounds for refusing to issue a license provided for by the legislation of the Kyrgyz Republic;

2) refusal of the MFC to comply with the directives of the National Bank to eliminate comments on the proposed changes and additions to the charter documents;

3) in other cases provided for by the legislation of the Kyrgyz Republic.

9.3. The National Bank issues a consent letter for making changes and additions to the applicant on the next working day after coordinating the changes and additions.

(In the edition of the resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)

9.4. After re-registration of changes and additions in the justice authorities, the MFC must, within three working days, submit to USMLE a copy of the certificate of re-registration, and in the event of replacement of the license - a petition for the issuance of a license.

9.5. The MFC is responsible for providing incorrect information.

9.6. Making changes and additions to the charter

9.6.1. Changes and additions made to the charter of the MFC are an integral part of it. Changes and additions made to the charter of the MFC, or a new edition of the charter of the MFC, enter into force after state registration in the manner established by the legislation of the Kyrgyz Republic.

9.6.2. For approval of changes and additions made to the charter, the MFC, within thirty working days from the date of adoption of the corresponding decision by the general meeting of shareholders, sends to USMLE the following documents in two copies:

• a petition for consideration of changes and additions made to the charter, or a new edition of the charter, signed by the head of the MFC;

• a protocol or extract from the protocol of the general meeting of shareholders with a decision on making changes and additions to the charter, duly certified;

• the text of changes and additions made to the charter, or a new edition of the charter, signed by the Chairman of the Board.

9.6.3. USMLE considers the submitted documents within thirty calendar days. In case of compliance of the documents with the requirements of this Regulation, USMLE issues a consent letter to the applicant for submission to the authorized state body for registration of legal entities with an attachment of the text of changes made to the charter, or a new edition of the charter.

(In the edition of the resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)

9.6.4. Within three working days from the date of state registration, the MFC must submit to USMLE:

• a copy of the certificate of state registration issued by the authorized justice body, duly certified;

• the original of changes and additions to the charter, or a new edition of the charter with a note of the authorized justice body on state registration and its notarized copy.

USMLE enters information about changes and additions into the register.

9.6.5. The MFC is obliged to notify the National Bank of the results of the final registration of the issuance of securities of the MFC in accordance with the legislation on securities within thirty calendar days from the moment the issue is recognized as completed and the report on the results of the issuance of securities is registered.

In addition to the notification, the following must be submitted:

1) a decision of the authorized state body regulating the securities market on the registration of the report on the results of the issuance of shares;

2) an extract from the shareholders' register, signed by the registrar, regarding the changes made or a new shareholders' register.

(In the edition of the resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)

9.6.6. Changes and additions made to the charter of the MFC are an integral part of it and enter into force from the date of their state registration in the manner established by legislation.

(In the edition of the resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)

9.7. Change in the size of the authorized capital

9.7.1. A change in the size of the authorized capital defined by the charter of the MFC is carried out after full payment of shares by shareholders. The adoption of a decision by the MFC to increase the authorized capital is permitted only after the registration of the previous change in the size of the authorized capital in the charter of the MFC and the recognition of the issuance of shares as completed.

9.7.2. If a change in the size of the authorized capital is made to the charter, the MFC, in addition to the documents listed in sub-paragraph 9.6.2 of this Regulation, additionally submits the following documents in two copies:

• a protocol or extract from the protocol of the general meeting of shareholders of the MFC, at which a decision was made to change the authorized capital;

• a list of shareholders (Appendix 5) indicating information about shareholders whose share in the authorized capital is five percent or more;

• information about the acquisition by shareholders of the MFC of more than five, but not more than twenty percent of the shares of the MFC as a result of one or several transactions by one legal or natural person, or a group of legal and/or natural persons related by an agreement, or legal entities that are subsidiary or dependent on each other;

• a copy of a letter confirming the previous registration of the issue and a certificate of the results of the issuance of shares;

• in the event of an increase in the size of the authorized capital, information is provided about the categories, classes, quantity, nominal value of declared shares and the rights they provide to the shareholder;

• a document confirming the deposit of funds in full amount to increase the authorized capital into an account in a commercial bank on the day of submitting the application (extracts from the settlement account in the bank).

If the capital increase is carried out:

• at the expense of additional capital contributed by founders/participants (shareholders) - a contract/agreement on the contribution of funds as additional capital and extracts from the settlement account in the bank on the contribution of these funds are submitted;

• at the expense of undistributed profit - a decision of the general meeting of founders/participants (shareholders) on the distribution of profit is submitted.

• information allowing to determine the sources of origin of funds, according to the list of documents established in sub-paragraph 11 of paragraph 4.2.

(In the edition of the resolutions of the Board of the National Bank of the KR of December 23, 2013 No. 52/8, December 24, 2014 No. 58/16)

9.7.3. When coordinating the increase in the size of the authorized capital of the MFC, the National Bank may require the provision of information in the manner provided for newly created MFCs, as well as require the provision of additional information regarding the financial condition of the shareholders of the MFC and the operations they conduct, the provision of charter documents of shareholders and their financial and other reporting.

(In the edition of the resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)

9.8. Change of the name of the MFC

9.8.1. To coordinate the change of the name of the MFC with the subsequent replacement of the license, a petition for changing the name of the MFC with the anticipated full and abbreviated name, containing its organizational and legal form, is sent to the National Bank.

The National Bank makes a decision within five working days and sends a response to the MFC regarding the results of coordination of the proposed new name of the MFC.

9.8.2 After receiving notification from the National Bank about the coordination of the new name, the shareholders of the MFC make a decision to change its name at the general meeting of shareholders and make corresponding changes to the charter of the MFC.

9.8.3 After adopting a decision at the general meeting of shareholders to change the name of the MFC, the following documents are submitted to USMLE:

• a petition for consideration of changes made to the charter in connection with the renaming of the MFC, signed by the head of the MFC;

• a protocol or extract from the protocol of the general meeting of shareholders with a decision on making changes to the charter in connection with the change of the name of the MFC, duly certified;

• the text of changes made to the charter regarding the change of the name of the MFC, signed by the Chairman of the Board.

9.8.4. USMLE considers the submitted documents in accordance with paragraph 9.6.3 of this Regulation.

9.8.5. The MFC, within five days from the date of state registration in the authorized justice body, must submit to USMLE the following documents:

• two copies of the certificate of state registration in the authorized justice body, duly certified;

• two copies of the original of changes to the charter, in the form of appendices to the charter with a note of the authorized justice body and its notarized copy;

• a petition for the issuance of a license with the new name.

The decision on the replacement of the license in connection with the change of the name of the MFC is made by the Supervision Committee of the National Bank upon the proposal of USMLE.

9.8.6. The MFC, within five working days from the date of replacement of the license in connection with its renaming, must inform the public through the media about the renaming, indicating the new name of the MFC.

9.8.7. The MFC that has changed its name must surrender the license with the old name to USMLE. USMLE carries out the replacement of the MFC license with an explanatory note stating that this license is issued in exchange for the license with the old name. USMLE enters a corresponding record about the replacement of the license into the register.

(In the edition of the resolution of the Board of the National Bank of the KR of June 16, 2010 No. 49/4)

9.9. Change of the location of the MFC

9.9.1. A change in the location (postal address) of the MFC may be accompanied by changes in the name of the settlement, the name of the street, the house number, or the relocation of the MFC to another settlement. A change in the location of the MFC within one settlement does not entail the replacement of its license and does not require making corresponding changes to the charter documents. Upon a change in location, including a change in the actual address, the MFC submits the following documents to USMLE:

1) a notification of a change in the location of the MFC, including a change in the actual address, of the MFC.';

2) a copy of the lease agreement or a document confirming the ownership rights of the MFC to the corresponding premises.

(In the edition of the resolution of the Board of the National Bank of the KR of December 24, 2014 No. 58/16)

9.9.2. USMLE enters a record into the register regarding the change of the location of the MFC.

9.9.3. Within two working days after the actual change of the location of the MFC, it must:

1) notify the National Bank in writing;

2) publish in the media about the change of the location (postal address) of the MFC.

9.10. Change in the composition of shareholders

9.10.1. Any natural or legal person wishing to acquire a package of shares of an MFC granting the right to exercise direct or indirect control, or acting together with other persons or associations, is obliged to submit an application to the National Bank in writing thirty days prior to the anticipated date of share acquisition.

9.10.2. Acquisition is understood as the purchase, transfer, pledge, and other forms of alienation or encumbrance of MFC shares.

9.10.3. Control is understood as the ability to control directly or indirectly the election of the majority of the members of the Board of Directors of the MFC, as well as to influence the management of the MFC in another way. Control may be exercised through ownership of five percent or more of the issued shares of the MFC of any type with voting rights or in any other way that allows influencing management decisions.

9.10.4. Applications for the acquisition of shares are also submitted by persons who, as a result of additional acquisition of MFC shares, become direct or indirect owners of a controlling package of shares.

9.10.5. The National Bank, no later than thirty days from the date of receipt of the application, and in the event of acquisition of shares by a non-resident - within sixty days, informs the applicant in writing of its decision (consent or refusal). The refusal must be motivated. In the event that the National Bank does not inform about the adopted decision within the specified period, the transaction for the acquisition of MFC shares is considered permitted.

9.10.6. The National Bank, within the framework of the implementation of its supervisory functions, may request and receive information about the financial position and business reputation of the shareholders of the MFC in the event of their acquisition of more than five percent of the shares of the MFC.

9.10.7. The National Bank may refuse to satisfy the application if:

1) the acquisition of the package of shares may lead to monopoly;

2) the financial condition of the acquiring parties poses a threat to the stability of the MFC;

3) the competence, experience, and qualifications of the proposed management of the MFC do not meet the established requirements;

4) the acquiring parties did not submit all the necessary information or submitted distorted or incorrect information.

9.10.8. The counting of the period for consideration of changes made to the composition of shareholders of the MFC begins from the date of receipt of documents meeting the requirements of the National Bank.

9.10.9. Information about all changes in the composition of shareholders of the MFC prior to the acquisition of a large package of shares (five percent or more) must be provided to USMLE on a semi-annual basis.

9.11. Changes related to the activities of the branch of the MFC

9.11.1. The MFC notifies the National Bank within three working days of changes made to the regulation on its branch.

9.11.2. The MFC, upon a change in the location of its branch, notifies the National Bank within three working days from the date of making changes.

9.11.3. The MFC must publish in the mass media information regarding the change of the location of its branch.

9.11.4. The Department of Licensing and Supervision (DLS) must prepare consent or refusal to make such changes within fifteen working days after receiving the notification about the proposed changes and additions.

10. Reorganization and Liquidation of MFCs

10.1. An MFC may be reorganized (merged, joined, divided, separated, transformed) by a decision of its shareholders or the body of the legal entity authorized by the constituent documents, or by a decision of the National Bank in accordance with the legislation of the Kyrgyz Republic.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 16, 2010 No. 49/4)

10.2. An MFC may be liquidated in accordance with the legislation of the Kyrgyz Republic. In this case, the MFC must submit the original license to the National Bank within three days from the moment of adopting the decision on voluntary liquidation and cease carrying out operations specified in the license from the moment of adopting the decision on liquidation.

10.2.-1. It is not permitted to adopt a decision on voluntary liquidation if the MFC has not fulfilled all obligations to creditors, including to financial and credit institutions.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 14, 2015 No. 62/1)

	Appendix 1 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

REQUIREMENTS
to founders who are owners of more than twenty percent of voting shares of the microfinance company

Founders of microfinance companies may be legal entities corresponding to one of the following points:

1. International financial organizations authorized by the World Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, and the Islamic Development Bank.

2. Foreign non-profit organizations upon fulfillment of the following conditions:

a) operating and/or having operated as credit suppliers for the last five years on microfinance development projects of governmental organizations of donor countries (for example, USAID, GTZ, TACIS, JICA, TICA), based on intergovernmental agreements with the Government of the Kyrgyz Republic;

b) having work experience in the Kyrgyz Republic for no less than three years;

c) providing assistance in supporting the economies of developing countries.

3. Financial and credit institutions and specialized credit institutions upon fulfillment of the following conditions:

a) stable financial condition and profitable activity in the market of the Kyrgyz Republic for the previous two years;

b) having a rating above average, assigned by a rating agency registered in the Microfinance Rating and Assessment Fund;

c) having an external audit report for the last two years;

d) no enforcement measures have been applied by the National Bank during the last twelve months.

This list may be reviewed by the National Bank.

	Appendix 2 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

To the Chairman of the National Bank of the Kyrgyz Republic

APPLICATION

for the issuance of a license

We request to issue a license for conducting certain banking operations (letter of consent) for the creation (registration in the justice bodies) of ______ ______ with

(name of MFC)

with the following details:

1. Name

2. Full address

3. Name of the authorized person

Address of the authorized person

Phone ______ Fax ______

4. Type of organization (by formation method)

Closed Joint-Stock Company

Open Joint-Stock Company

5. Connection with a holding company (yes, no)

If yes, then the name of the holding company

6. Expected capital structure:

• share capital (nominal)

• nominal value of a share

• number of shares

Founders are fully responsible for the accuracy of the submitted information.

Constituent documents on ______ sheets, described page by page.

Founders: Full Name, signature, date,

seal

Address, phone, fax

1.

2.

3.

(If the founder is a legal entity, the full name of the legal entity is indicated, the signature of the head is placed and certified with a seal)

	Appendix 3 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

LIST
of main issues that must be reflected in the founding agreement on the creation of an MFC

1. Full and short name;

2. Goals of creation;

3. Information on the organizational and legal form;

4. Information on the authorized capital;

5. Rights and obligations of founder-shareholders of the MFC;

6. Information on shares;

7. Information on management bodies (Board of Directors, Management Board), their competence and appointment procedure;

8. Procedure for reorganization and liquidation;

9. Other issues provided for by legislation.

	Appendix 4 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

LIST
of main issues that must be reflected in the charter of an MFC

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 11, 2012 No. 29/5)

1. Full and short name of the MFC with indication of the organizational and legal form (in Kyrgyz, Russian, and English);

2. Goals of creation of the MFC, provisions regulating issues of achieving the goal established by Article 2 of the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic";

3. Operations carried out by the MFC;

4. Information on the authorized capital of the MFC;

5. Information on shares of the MFC;

6. Rights and obligations of shareholders;

7. Placement of MFC shares;

8. Alienation of shares by shareholders;

9. Shareholder register and procedure for shareholder registration;

10. Profit distribution;

11. Protection of client interests;

12. Accounting and reporting of the MFC;

13. Management bodies of the MFC (Board of Directors, Management Board), their competence and appointment procedure;

14. Control over the financial and economic activity of the MFC;

15. Information on subsidiary enterprises, branches, and representative offices;

16. Procedure for making changes and additions to the charter;

17. Procedure for reorganization and liquidation of the MFC;

18. Other issues provided for by the legislation of the Kyrgyz Republic.

	Appendix 5 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

LIST

of founders (shareholders)

______

(name of MFC)

№	For legal entities	Postal index, address, phone, fax	Payment details of the founder, account number and name of the financial credit organization where the account is opened	Declared authorized capital	Paid as of 20__
	Full name of legal entity	Full Name of founder (shareholder) of legal entity		In thousands of soms	Share in authorized capital (in %)	Share in paid-up capital (in %)	Share in paid-up capital (in %)	Share in authorized capital (in %)
1	2	3	4	5	6	7	8	9
Total

Chairman of the Board of Directors (signature) Full Name.

Seal (for a newly created MFC - seal of the legal entity from which the Chairman of the Board of Directors was elected; for an existing MFC - seal of the MFC).

	Appendix 6 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

LIST

of main issues that must be

reflected in the business plan

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 11, 2012 No. 29/5)

I. Introduction

A. Indicate the name of the MFC, location of the MFC.

B. Indicate the authorized person, their address, phone number.

II. Description of the area of activity of the MFC

A. Indicate the expected market territory on which the MFC will operate.

B. List and briefly describe the expected services. Pay attention to the expected credit policy (risk assessment mechanism when issuing loans, mechanism for continuous control of issued loans, other issues related to the expected credit policy), deposit services, as well as the conduct of other operations prioritized for the newly created MFC. Indicate provisions regulating issues of achieving the goal established by Article 2 of the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic".

C. Indicate the Chairman and members of the Board of Directors, Chairman and members of the Management Board of the new MFC.

List the expected shareholders, the number of shares of which will constitute five percent or more of those issued, indicate the percentage of shares that are expected to be purchased by them.

III. Management and Control

A. Indicate the name of the MFC and the scope of duties of the management board and officials, describe the plan for staffing and personnel policy of the MFC.

B. Discuss the proposed candidates for officials, as well as the qualities they must possess. Indicate the essence and volume of experience they must possess to be able to provide the proposed services or serve the proposed market sectors.

C. Discuss any conflicts of interest.

D. Describe any agreements that the MFC intends to conclude for microcredit services activity.

IV. MFC Analysis

A. Analyze and describe the markets that the MFC will serve, indicate size, income, and other economic indicators. Include expected changes in the market, factors influencing these changes, and their impact on the newly created MFC. To the extent necessary for business decisions, describe the differences between the markets you will serve, for example, differences between deposit and credit markets.

B. Analyze competition. List competitors within the service market sector, competitors outside the sector and capable of influencing the served markets, as well as any potential competition.

Provide an analysis of market strategies, as well as expected results in terms of relative strength of influence on the cost of market shares and prices.

C. Explain the chosen strategy to obtain a share of each market (deposit/credit) and indicate expected results.

V. Plans and Goals

A. Consider the main planning objects used in market analysis and when setting plans and goals for the new MFC. Include, at least, the following: market growth, interest rates, cost of funds, and competition.

B. Describe the mechanism that will provide protection against operations related to money laundering.

C. Describe the staffing plan and personnel policy.

D. How is the formation of the MFC clientele expected?

VI. Asset and Liability Structure

The projected balance sheet and income statement must reflect changes in assets and liabilities, volume for each type of service, as well as salaries for officials and staff, and be based on planning objects that must be presented as part of the application, market analysis, and strategy discussed above. The following are expected forms for forecasts.

Discuss the organizers' plans regarding ensuring the new MFC with independent external audit. To fulfill licensing conditions, the National Bank may require the MFC to hire an independent external auditor.

VII. Capitalization/Equity Plan

A. Provide justification for how the expected capital structure will be achieved and explanations of why the organizers believe the proposed amount is sufficient under market economy conditions. It is expected that organizers will establish capital in an amount sufficient to effectively compete in the market sector and appropriately support planned operations.

B. Discuss plans for initial capital attraction and financing growth during the first three years. Explain how the plans will ensure the MFC's compliance with the main regulatory standards established by the National Bank.

C. Discuss the quantity and class of issued shares, nominal and selling price of the share.

D. Assess the adequacy of the projected capital taking into account risk-weighted assets.

E. Describe the credit policy of the MFC, the mechanism for assessing risk criteria.

	Appendix 7 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

NATIONAL BANK OF THE KYRGYZ REPUBLIC

LICENSE No. ______

"_" ______ 20

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated April 25, 2012 No. 18/9, July 11, 2012 No. 29/5, February 13, 2013 No. 4/2)

Microfinance Company

---

(full name)

created for the purpose of providing accessible microfinance services to overcome poverty, increase employment levels, promote entrepreneurship development, and social mobilization of the population of the Kyrgyz Republic, in accordance with the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic"

legal address of MFC ______ ______

(short name)

1. This license permits the following specific banking operations:

1.1. Issuance of microcredits;

1.2. Acceptance of term deposits from individuals and legal entities on a repayable basis for the purpose of accumulating client savings;

1.3. (Excluded in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 13, 2013 No. 4/2)

1.4. Purchase and sale of debt obligations (factoring).

2. An integral part of this license is the sheet of restrictions on conducting specific banking operations.

This license enters into force from the moment of its signing by the Deputy Chairman of the National Bank supervising the DLS.

This license grants the right to carry out operations explicitly stipulated in the license.

The license is non-transferable (named). Rights arising from this license are not subject to transfer to third parties.

Seal

Deputy Chairman of the National Bank

	Appendix 8 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

SHEET OF RESTRICTIONS No. _____

"_" ______ 20

to License No. _____ issued on "_" ______ 20

for the right to conduct specific banking operations

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic dated April 25, 2012 No. 18/9)

Microfinance Company "______" ______

(full name of the legal entity)

Serial number of banking operation	Presence of restriction	Date from which the restriction applies	Note
1.1	No
1.2	No
1.3	No
1.4	No

Deputy Chairman of the National Bank

	Appendix 9 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

National Bank of the Kyrgyz Republic

NOTIFICATION

(on the letterhead of the institution)

Hereby ______ notifies about

(name of MFC)

the intention to open (close) a branch in

---

(name of settlement, location)

according to ______

(name of the management body of the MFC that adopted

---

in accordance with the charter a decision to open a branch)

This branch is empowered to conduct the following operations and transactions(*):

-

-

(all operations and transactions, the right to perform which is delegated to the branch in accordance with the regulation on the branch within the license issued to the MFC by the National Bank, are indicated).

The Head and Chief Accountant are appointed: ______ ______

(Full Name)

Attachment: copies of personnel records for the head and chief accountant of the branch, power of attorney, total on _____ sheets.

The MFC has no obligations():

• to clients and creditors served in this branch;

• to the budget.

Assets and liabilities are transferred to the balance sheet of the MFC.

The MFC is fully responsible for the accuracy of the submitted information.

Head of the executive body of the MFC (signature) Full Name.

(*) These details are provided when opening a branch.

() These details are provided when closing a branch.

	Appendix 10 to the Regulation on licensing, reorganization and liquidation of MFCs in the territory of the Kyrgyz Republic

National Bank of the Kyrgyz Republic

NOTIFICATION

of the MFC regarding the opening (closing) of a representative office(*)

---

(on the letterhead of the institution)

Hereby ______

(full name of the MFC opening

---

representative office and its license number)

notifies that in order to()

---

(the purpose of opening the representative office is indicated)

by decision of ______

(the management body of the MFC that adopted

---

a decision to open a representative office)

______ opened, (closed)

(date of opening (closing) of the representative office)

representative office at address ______

(location of the

---

representative office, phone, fax, and name of the MFC in which

---

the representative office's settlement account is opened)

The Head of the representative office is appointed:

---

(Full Name of the head is indicated)

Attachment: copy of the personnel record for the head of the representative office, power of attorney, on ____ sheets.

Head of the MFC body that adopted

the decision to open (close) the

representative office (signature) Full Name.

Seal(*)

(*) For the opening of a representative office of a foreign MFC, write "application" instead of "notification".

() These details are provided when opening a representative office.

(*) The seal is placed on the notification of the non-resident MFC.

(1) In accordance with the rules for regulating the activities of microfinance companies in the territory of the Kyrgyz Republic, approved by the resolution of the Board of the National Bank No. 4/2 dated 19.02.03, registration number of the Ministry of Justice of the Kyrgyz Republic No. 29-03 dated 25.03.03.

(2) In accordance with the Regulation on minimum qualification requirements for officials of microfinance companies licensed by the National Bank, approved by the resolution of the Board of the National Bank No. 4/2 dated 08.02.06, registration number of the Ministry of Justice of the Kyrgyz Republic 21-06 dated 13.03.06.

(3) In accordance with the rules for regulating the activities of microfinance companies in the territory of the Kyrgyz Republic, approved by the resolution of the Board of the National Bank No. 4/2 dated 19.02.03, registration number of the Ministry of Justice of the Kyrgyz Republic 29-03 dated 25.03.03.

(4) In accordance with the Regulation on minimum qualification requirements for officials of microfinance companies licensed by the National Bank, approved by the resolution of the Board of the National Bank No. 4/2 dated 08.02.06, registration number of the Ministry of Justice of the Kyrgyz Republic 21-06 dated 13.03.06.