Resolution of the Board

of the National Bank

of the Kyrgyz Republic

dated 17 January 2024

No. 2024-П-09/1-2-(НФКУ)

On Approval of the Regulation "On the Lender of Last Resort

to Non-Bank Financial and Credit Organizations Attracting Deposits"

In accordance with Articles 5, 9 and 64 of the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

• 1. To approve the Regulation "On the Lender of Last Resort to Non-Bank Financial and Credit Organizations Attracting Deposits" (attached).

• 2. This resolution shall enter into force 15 (fifteen) days after the date of official publication.

• 3. The Legal Department:

  • within 3 (three) working days from the date of receipt of the relevant documents, to publish this resolution on the official website of the National Bank of the Kyrgyz Republic;

  • after official publication, to send this resolution to the Ministry of Justice of the Kyrgyz Republic for entry into the State Register of Normative Legal Acts of the Kyrgyz Republic.

• 4. The Monetary and Credit Operations Department shall, within 3 (three) working days from the date of receipt of the relevant documents, bring this resolution to the attention of non-bank financial and credit organizations attracting deposits and the relevant structural subdivisions of the National Bank of the Kyrgyz Republic.

• 5. Control over the execution of this resolution shall be assigned to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Monetary and Credit Operations Department.

Chairman K. Bokontaev

Annex

to the resolution of the Board

of the National Bank

of the Kyrgyz Republic

dated 17 January 2024

No. 2024-П-09/1-2-(НФКУ)

REGULATION

"On the Lender of Last Resort to Non-Bank Financial and Credit Organizations Attracting Deposits"

Chapter 1. General Provisions

1. This Regulation "On the Lender of Last Resort to Non-Bank Financial and Credit Organizations Attracting Deposits" (hereinafter – the Regulation) defines the general conditions and procedure for the provision by the National Bank of the Kyrgyz Republic (hereinafter – the National Bank) of a lender of last resort loan to non-bank financial and credit organizations attracting deposits (hereinafter – NBFCOs) experiencing solvency problems.

2. A lender of last resort loan (hereinafter – the loan) to NBFCOs is provided in accordance with Articles 5, 6 and 17 of the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic" (hereinafter – the Constitutional Law) and this Regulation.

3. For the purpose of preventing systemic risk, ensuring integrity and preserving the stability of the financial system, the National Bank shall be entitled to provide loans to individual NBFCOs experiencing temporary liquidity problems. In this case, the NBFCOs are solvent. The provision of loans in the form of an overdraft is prohibited.

4. By providing such a loan, the National Bank exercises its function as a lender of last resort, providing temporary support to NBFCOs. The loan is provided to NBFCOs for the purpose of preventing the risk of insolvency and protecting deposits of individuals in the national currency.

5. The loan is provided to an NBFCO experiencing solvency problems and carrying out financial rehabilitation measures. In this case, for the purposes of implementing this Regulation, an NBFCO experiencing solvency problems is understood to be an NBFCO in which the following have been established:

• facts and circumstances, including force majeure circumstances, that led to the NBFCO's inability to fulfill obligations to depositors;

• risks of non-fulfillment of obligations to depositors.

6. The decision to provide a loan, including the terms of provision, the term and the amount of the loan, is made by the Board of the National Bank. The interest rate on the loan is set by the Board of the National Bank.

7. The Board of the National Bank shall have the right to establish certain requirements that the NBFCO must fulfill before the commencement of consideration of the issue of providing a loan.

8. The loan is provided in the national currency in compliance with the general principles of lending: term, interest, repayment and collateral.

9. The obligation to repay the loan is secured by collateral. Requirements for the collateral, the sufficiency level (in percentage terms), the type and other parameters of the collateral security are established by the Board of the National Bank.

Chapter 2. Conditions for the Provision of the Loan

10. After applying to the National Bank for a loan, the NBFCO may not take on new obligations (deposits and other types of obligations in accordance with the legislation of the Kyrgyz Republic) without the consent of the National Bank until the loan is fully repaid.

11. The Board of the National Bank shall be entitled to establish other requirements for the NBFCO for the period until the loan is fully repaid.

12. For the duration of the loan, the NBFCO shall not be entitled to use the loan for the purchase of GCSs (GKVs, GKOs) and National Bank notes through commercial banks.

13. The NBFCO shall not be entitled to use the loan for the payment of deposits (savings) to officials and persons related to or affiliated with the NBFCO. The National Bank may establish additional restrictions on transactions with persons related to or affiliated with the NBFCO.

14. The NBFCO shall not be entitled to use the loan for the payment of administrative expenses, including all types of remuneration and other types of incentive payments to officials and employees of the NBFCO. In addition, the National Bank shall be entitled to establish a requirement for the NBFCO to reduce its administrative expenses. The NBFCO shall also not be entitled to make decisions on the distribution of profit, the payment of dividends (including under previously adopted decisions), the fulfillment of any financial obligations and payments to shareholders (participants), as well as the payment of any remuneration to officials and employees of the NBFCO, with the exception of wages.

15. In the event that the Board of the National Bank adopts a decision to refuse to provide a loan to the NBFCO, the National Bank shall notify the NBFCO thereof in writing.

Chapter 3. Loan Collateral

16. The obligation of the NFKO to repay the loan is secured by a pledge. The pledged property provided as security for the loan may not be pledged or re-pledged to a third party.

17. A pledge in the following form may serve as security for the loan:

• 1) government securities of the Cabinet of Ministers of the Kyrgyz Republic;

• 2) deposits in a financial and credit institution acceptable to the National Bank;

• 3) foreign currency;

• 4) rights of claim under a loan portfolio meeting certain characteristics, in the manner established by the Board of the National Bank Resolution "Minimum Requirements for the Formation of a Loan Portfolio Accepted as Collateral". In this case, the loans for which rights of claim are pledged must, at the time of application for credit funds, have been issued from the NFKO's own funds in the national currency and be classified as unclassified assets (except for watch-list assets) and must not have been restructured.

• 5) other types of assets and property acceptable to the National Bank, in cases established by the Board of the National Bank.

18. The pledged property must belong to the pledgor by right of ownership and must not be encumbered by other obligations.

19. Shares of legal entities supervised by the National Bank may not serve as pledged property.

20. Insufficient collateral is grounds for refusing to provide the amount of the loan requested by the NFKO.

21. The market value of the pledged property must be no less than the amount of the requested loan, including the amount of accrued interest for the expected period of its use. In the event that collateral in the form of rights of claim under loans is provided to the NFKO, a portion of the amount of the loan requested by the NFKO, taking into account the application of the corresponding collateral coefficient, must be secured by the collateral specified in subitems 2 and 3 of item 17 of this Regulation and owned by the NFKO by right of ownership. Requirements for the maximum amount of collateral in the form of rights of claim under loans are determined by the Board in percentage terms together with other requirements for collateral.

22. The procedure for acceptance, enforcement, collection and realization of property provided as security (pledge) is established by the legislation of the Kyrgyz Republic, pledge agreements and additional agreements thereto.

Chapter 4. Procedure for Granting and Repaying a Loan

23. To obtain a loan, the NFKO must submit the following documents to the National Bank:

• an application-petition for the granting of a loan indicating the purpose of obtaining the loan;

• minutes of the board of directors of the NFKO or another authorized person on the decision to obtain a loan and to provide assets and/or property as security for the requested loan;

• duly certified copies of documents confirming the pledgor's right of ownership to the pledged property;

• documents containing a description of the pledged property, confirming the right of ownership and an appraisal of the pledged property by an independent appraiser;

• documents confirming that the NFKO has notified the NFKO's shareholders of its intention to apply to the National Bank for a loan (notices are delivered personally against signature or sent by post to the last known address);

• the National Bank has the right to request other documents necessary for considering the issue of granting a loan;

• the NFKO's financial rehabilitation plan approved by the NFKO's board of directors.

24. For the issuance of a loan, the National Bank and the NFKO shall conclude a Last Resort Loan Agreement in accordance with Appendix 1 to this Regulation, a Loan Agreement, as well as a Pledge Agreement, the format and requirements of which are determined by the National Bank depending on the type of collateral.

25. The loan is provided in tranches (installments) as the financial rehabilitation plan of the problem NFKO is implemented and as it submits a report on the targeted use of the previously received tranche in detail in accordance with Appendix 2 to this Regulation.

26. Tranches are issued for a period not exceeding the loan closing date determined by a decision of the Management Board. The loan closing date and/or the final repayment date of the tranches may be extended by a decision of the National Bank's Management Board.

27. Repayment of the principal amount of the tranche and the interest accrued thereon shall be made on the terms set forth in the Last Resort Loan Agreement.

28. In the event of misuse of the loan or non-performance/improper performance by the NFKO of its obligations, the National Bank shall be entitled to suspend the issuance of the next loan tranche and to demand early repayment, or to forego on the pledged property.

Chapter 5. Calculation of Interest on the Loan

29. Interest on the amount of each loan tranche is accrued using the simple interest formula for the period of actual use of the issued tranche, based on 360 calendar days in a year, according to the following formula:

P = (C x I x T) /360/100, where:

• P – the amount of interest on the tranche;

• C – the amount of the tranche (som);

• I – the interest rate (in % per annum);

• T – the period of use of the tranche (in days).

30. The actual number of calendar days during which the NFKO used the issued tranche includes the days off and holidays established by legislation or declared by the Cabinet of Ministers of the Kyrgyz Republic.

31. If the date of repayment of the principal amount of the loan and/or payment of the interest accrued thereon falls on a holiday, non-working day or day off, then repayment of the principal amount of the loan and/or the interest accrued thereon shall be made on the next working day.

Chapter 6. Special Conditions

32. The National Bank shall have the right at any time, at its discretion, to conduct an inspection of the NFKO's activities.

33. During the loan period, the NFKO shall comply with all requirements set forth in the Last Resort Loan Agreement and Pledge Agreements, as well as with the decisions of the National Bank.

34. In the event of the NFKO's failure to comply during the loan period with any of the requirements set forth in the decisions of the National Bank's Management Board, the Last Resort Loan Agreement and/or the pledge agreements, the National Bank shall have the right to suspend the loan and demand early repayment of the tranches provided and the interest accrued thereon. In the event of the NFKO's failure to comply with the demand for early repayment of obligations, the National Bank may initiate the procedure of out-of-court foreclosure on the pledged collateral.

35. Upon the demand of the National Bank, the NFKO shall submit a report on the use of the loan and other necessary documents in the form and within the time limits established by the National Bank.

Chapter 7. Liability and Unlawful Actions

36. The National Bank shall not be liable for any losses arising as a result of non-performance or partial performance by the NFKO of the loan granting conditions.

37. The granting of a loan by the National Bank cannot be regarded as the National Bank assuming obligations in respect of the NFKO.

38. At any stage of obtaining and using the loan, the National Bank shall be entitled to apply to the NFKO the measures of influence provided for by the legislation of the Kyrgyz Republic and the normative legal acts of the National Bank.

30. The NFKO shall be responsible for compliance with the targeted use of the loan and all other conditions of the loan agreements.

40. The officials of the NFKO, the shareholders of the NFKO, and related or affiliated persons shall be liable in accordance with the legislation of the Kyrgyz Republic for the following unlawful actions:

• concealment, falsification of records or entering of false records into the accounting and other documentation of the NFKO;

• exerting influence on the officials and employees of the NFKO with the aim of having them make decisions in favor of certain creditors and debtors;

• refusal to cooperate with officials or obstruction of the return of the NFKO's property;

• obstruction of the NFKO's officials in the performance of their duties and failure to comply with its lawful demands;

• actions recognized by a court which led to compulsory liquidation, including bankruptcy;

• obstruction of the National Bank in the performance of its duties and failure to comply with the lawful demands of the National Bank.

Appendix 1

to the Regulation "On the Loan

of Last Resort

to Non-Bank Financial and

Credit Organizations

Attracting Deposits"

AGREEMENT

on obtaining a loan of last resort

Bishkek No. ________ dated __________

The National Bank of the Kyrgyz Republic, hereinafter referred to as the "National Bank", represented by ______________, acting on the basis of ________________, on the one side, and __________, hereinafter referred to as the "NFKO", represented by ______________, acting on the basis of the Charter, on the other side, hereinafter jointly referred to as the "Parties", have concluded this Agreement on obtaining a loan of last resort (hereinafter – the Agreement) as follows:

1. TERMS AND DEFINITIONS

1.1. For the purposes of this Agreement, the terms listed below shall have the following meaning:

Lending limit – the maximum total amount established in accordance with this Agreement, within which the NFCCO is entitled to receive loans/tranches during the term of this Agreement, subject to compliance with the basic requirements.

Basic requirements – the requirements established by the Regulation "On the last-resort lending to non-bank financial and credit organizations attracting deposits", approved by the resolution of the Board of the National Bank of the Kyrgyz Republic dated ___________ No. _____.

Lending limit availability period – the period of time from the date of signing this Agreement through __________ inclusive, during which the NFCCO is entitled to receive loans/tranches under this Agreement.

Loan/tranche – funds provided by the National Bank to the NFCCO on the terms provided for in this Agreement, in a total amount not exceeding the lending limit. Loans/tranches are provided in accordance with the NFCCO's applications. The terms of disbursement and repayment of loans/tranches are determined by specific loan agreements for the disbursement of a loan/tranche.

Free balance of the lending limit – the amount of funds under the lending limit remaining after the last disbursement of a loan/tranche by the National Bank to the NFCCO, equal to the difference between the lending limit and the total amount of disbursed but not repaid (i.e., outstanding) loans/tranches in accordance with the terms of this Agreement. The free balance of the lending limit may be disbursed to the NFCCO as a loan/tranche within its amount and the lending limit availability period, as well as provided that the collateral security is sufficient.

Loan agreement for the disbursement of a loan/tranche – an agreement concluded by the parties within the framework of this Agreement, on the basis of which the National Bank provides the NFCCO with a loan/tranche, and which constitutes an integral part of this Agreement. The loan agreement for the disbursement of a loan/tranche is concluded in the form specified in Appendix 1 to this Agreement.

Date of disbursement of the loan/tranche – the day of transfer of the loan/tranche amount to the NFCCO's account in a commercial bank.

Date of repayment of the loan/tranche – the day of receipt of funds from the NFCCO to the National Bank's account, in an amount covering the National Bank's claims under this Agreement and the loan agreements for the disbursement of a loan/tranche, including the principal amount, accrued interest thereon and other payments, but no later than ________________.

2. SUBJECT OF THE AGREEMENT

2.1. The National Bank provides (opens) the NFCCO with a loan with a lending limit in the amount of ________________ (amount in words) soms on the terms of maturity, repayability, interest-bearing nature, security and other terms determined by this Agreement, and the NFCCO undertakes to repay to the National Bank the loans/tranches received and to pay interest for their use in the amount, within the time limits and on the terms provided for in this Agreement and the loan agreements for the disbursement of a loan/tranche.

2.2. A credit with a credit limit is provided (opened) from ___________ to __________, at the end of which the NFCI must fully repay the debt on credits/tranches provided in accordance with this Agreement, including the principal amount, accrued interest and other payments on credits/tranches.

2.3. Within the established credit limit during the term of this Agreement, but not later than the period of availability of the credit limit, the NFCI has the right to receive another credit/tranche within the free balance of the credit limit, subject to compliance with the main requirements at the time of submission of the corresponding application for the issuance of a credit/tranche. Compliance with the main requirements is confirmed by the corresponding information and documents provided by the NFCI to the National Bank at the time of submission of the application for the issuance of a credit/tranche.

2.4. The outstanding balance of the NFCI on received credits/tranches during the entire term of this Agreement cannot exceed the credit limit established by paragraph 2.1 of this Agreement.

2.5. Credit funds issued by the National Bank to the NFCI under this Agreement have a designated purpose and must be used by the NFCI to maintain liquidity. At the same time, the provided credit funds are primarily directed to satisfying claims for the return of deposits (deposits) of individuals.

2.6. The NFCI is not entitled to use the credit funds provided by the National Bank for lending, for conducting operations on the securities market. The National Bank has the right to establish restrictions on operations with persons related or affiliated with the NFCI.

3. PROCEDURE FOR ISSUING CREDITS/TRANCHES

3.1. To obtain a credit/tranche, the NFCI must submit to the National Bank an application for the issuance of a credit/tranche indicating the amount, term of the credit/tranche and a list of assets offered as collateral for the credit/tranche.

The NFCI's application for the issuance of a credit/tranche must be accompanied by documents and information on the NFCI's compliance with the main requirements.

3.2. A credit/tranche may be obtained with a repayment term of not more than_____ months from the date of conclusion of this Agreement.

3.3. Credits/tranches will be provided by the National Bank to the NFCI with the execution of corresponding credit agreements on the issuance of a credit/tranche, which will stipulate the specific terms of issuance of the credit/tranche: size (amount), term, interest rate, terms of repayment of the principal amount and interest on the credit/tranche, etc. The specified credit agreements on the issuance of a credit/tranche must contain a reference to this Agreement.

3.4. The NFCI is obliged to comply with all requirements of the National Bank for the submission of necessary documents for obtaining a credit/tranche. The National Bank has the right to request from the NFCI additional documents and information concerning the NFCI's application for the issuance of a credit/tranche.

3.5. The provision of the credit/tranche will be made by the National Bank after reviewing all necessary materials and documents directly related to the issuance of the credit/tranche, in accordance with the main requirements.

The National Bank, having considered the completeness, validity and compliance of the documents provided by the NFCI for the issuance of a credit/tranche, makes a decision on granting or refusing to issue a credit/tranche, in accordance with its internal procedures, subject to the terms of this Agreement.

3.6. The credit/tranche will be provided to the NFCI within 2 (two) business days after the NFCI provides to the National Bank confirmation from the relevant authorized body on the registration of the pledge agreement in accordance with the signed credit agreement on the issuance of a credit/tranche. In exceptional cases, the credit/tranche may be issued to the NFCI before the completion of the procedures for registration of pledge agreements with the authorized bodies.

4. TERMS OF SETTLEMENT, ACCRUAL AND PAYMENT OF INTEREST FOR THE USE OF THE CREDIT/TRANCHE AND OTHER AMOUNTS

4.1. For the use of credits/tranches provided by the National Bank, the NFCI undertakes to pay the National Bank interest. Interest is accrued on the outstanding balance of the NFCI on the principal amount of the credit/tranche.

The interest rate of the National Bank on the credit is fixed and is set at _____ percent per annum

4.2. Accrual and payment of interest for the use of the credit/tranche is made on a monthly basis.

4.3. Interest is accrued from the date of provision of the credit/tranche (excluding this day) to the date of repayment of the credit (including this date) on the actual outstanding balance of the credit/tranche based on 360 days in a year and the actual number of days in the month.

4.4. Repayments of the principal amount of the debt and/or accrued interest on the credit/tranche are made not later than the business day of the end of this Agreement.

4.5. The procedure for payment of the principal debt and accrued interest on individual credits/tranches will be determined by individual credit agreements on the issuance of a credit/tranche.

5. RIGHTS AND OBLIGATIONS OF THE PARTIES

5.1. Rights and obligations of the National Bank:

• 5.1.1. The National Bank undertakes to timely carry out all necessary actions for the issuance of the credit/tranche in accordance with this Agreement and the credit agreements on the issuance of a credit/tranche;

• 5.1.2. The National Bank has the right to take any measures provided for by the current legislation of the Kyrgyz Republic necessary for the NFCI to fulfill its obligations under this Agreement and the credit agreements on the issuance of a credit/tranche;

• 5.1.3. During the period of validity of this Agreement, the National Bank has the right to conduct measures to verify the financial condition of the NFCI, the condition of the collateral for the credit, the designated use of the credit/tranche;

• 5.1.4. The National Bank has the right to request and receive from the NFCI any information necessary for it, including information on the condition of the collateral for the credit, the designated use of the credit/tranche, including copies certified by the NFCI of payment documents on the transfer of amounts and other information, and documents for the purposes of monitoring and control;

• 5.1.5. The National Bank has the right, unilaterally, without the approval and consent of the NFKO, to initiate the procedure for foreclosure of the collateral for the entire amount of overdue indebtedness on the principal amount of credits/tranches, accrued interest thereon, penalties in the form of fines and penalties, and other amounts provided for by this Agreement and the credit agreements for the issuance of a credit/tranche, including losses and expenses of the National Bank incurred as a result of violations of the NFKO's fulfillment of obligations under this Agreement and the credit agreements for the issuance of a credit/tranche or violation by the NFKO of the terms and provisions of the pledge agreements concluded between the NFKO and the National Bank to secure this Agreement and the credit agreements for the issuance of a credit/tranche;

• 5.1.6. In the event that the NFKO fails to comply with the requirements and conditions of the National Bank under this Agreement and the credit agreements for the issuance of a credit/tranche, the National Bank has the right to commence the procedure for foreclosure of the pledge to cover all or part of the amount of the NFKO's indebtedness under this Agreement, the credit agreements for the issuance of a credit/tranche, including the principal amount on the credits/tranches, accrued interest thereon, penalties and fines or the corresponding amount equivalent to the missing collateral;

• 5.1.7. In the event of seizure of funds in foreign currency, the conversion (transfer) of the seized/written-off funds into the currency of the credit/tranche issued by the National Bank to the NFKO shall be carried out in accordance with the official exchange rate established by the National Bank on the date of write-off/seizure of the funds in foreign currency.;

• 5.1.8. The National Bank has the right, in the cases provided for by this Agreement, the credit agreements for the issuance of a credit/tranche and the pledge agreements concluded between the National Bank and the NFKO in accordance with this Agreement, to foreclose on the items of pledge provided by the NFKO to the National Bank;

• 5.1.9. The National Bank has the right, unilaterally, to refuse to issue a credit/tranche and/or suspend the issuance of a credit/tranche and/or demand that the NFKO fulfill its obligations under this Agreement and the credit agreements for the issuance of a credit/tranche, including repayment of the principal debt on the credits/tranches, payment of accrued interest for the actual time of use of the credits/tranches and other amounts due to the National Bank in accordance with this Agreement and the credit agreements for the issuance of a credit/tranche, in any of the following cases:

  • 1) in the case of misuse of the credit/tranche by the NFKO;

  • 2) in the case of failure to provide or untimely provision by the NFKO of documents and information requested by the National Bank in accordance with this Agreement and the credit agreements for the issuance of a credit/tranche;

  • 3) in the case of non-fulfillment or improper fulfillment by the NFKO of its obligations under this Agreement and the credit agreements for the issuance of a credit/tranche;

  • 4) in the case of violation by the NFKO of the schedules for repayment of indebtedness according to the credit agreements for the issuance of a credit/tranche;

  • 5) in the case of violation by the NFKO of the provisions of the agreements concluded between the NFKO and the National Bank on the pledge of property provided by the NFKO to secure the credit issued by the National Bank to the NFKO in accordance with this Agreement;

  • 6) in the case of the National Bank having information based on official data or data from authorized bodies that a significant, in the opinion of the National Bank, deterioration of the financial position of the NFKO has occurred and/or in the case of the appearance of other circumstances that may lead to non-fulfillment or improper fulfillment by the NFKO of its obligations to the National Bank under this Agreement and the credit agreements for the issuance of a credit/tranche;

  • 7) in the case where the information provided by the NFKO to the National Bank, in accordance with this Agreement and the credit agreements for the issuance of a credit/tranche, is unreliable, to a significant extent incomplete/distorted, and/or knowingly false.

• 5.1.10. The National Bank shall notify the NFKO in writing of its requirements specified in paragraph 5.1.9.

In the event of termination by the National Bank of the issuance of a credit/tranche for the reasons specified in paragraph 5.1.9, the National Bank has the right to unilaterally close the NFKO's free remaining credit limit and demand from the NFKO early repayment of the principal amount on the issued credits/tranches and interest accrued for the actual time of use thereof, of which the National Bank shall notify the NFKO in writing. The NFKO is obliged to fulfill the requirements contained in the written notification of the National Bank within a period not later than 5 (five) business days from the moment the NFKO receives the corresponding written notification of the National Bank, unless other periods are provided for in the notification.

In the event of closure by the National Bank of the free remaining credit limit unilaterally, the specified change shall enter into force on the date specified by the National Bank in the corresponding written notification to the NFKO.

5.2. Rights and obligations of the NFKO:

• 5.2.1. The NFKO has the right to make early repayment of the principal debt and/or interest under this Agreement and the credit agreements for the issuance of a credit/tranche, with prior notification thereof to the National Bank not later than three business days before the planned day of repayment.

• 5.2.2. The NFKO is obliged to use the funds received from the National Bank in accordance with this Agreement and the credit agreements for the issuance of a credit/tranche strictly for the intended purpose established in paragraph 2.5. of this Agreement and the corresponding paragraphs of the credit agreements for the issuance of a credit/tranche on the issuance of a credit/tranche.

• 5.2.3. The NFCI is obliged to comply with all requirements of the National Bank put forward by it in accordance with this Agreement and the credit agreements on the issuance of a credit/tranche, including the provision, within the deadline, in the required form and in full, of information and documents requested by the National Bank in accordance with this Agreement and the credit agreements on the issuance of a credit/tranche.

• 5.2.4. Throughout the entire term of this Agreement, the NFCI is not entitled to re-pledge or otherwise encumber the property and/or claims provided to secure the performance of its obligations to the National Bank in accordance with this Agreement.

• 5.2.5. The NFCI undertakes to repay, in a timely manner and in full, the principal amount and accrued interest on the credits/tranches received, according to the repayment schedules, in accordance with this Agreement and the credit agreements on the issuance of a credit/tranche.

• 5.2.6. The NFCI undertakes to take, in a timely manner and in full, all necessary measures to ensure the safekeeping and integrity of the pledged property provided by the NFCI to secure the performance of its obligations to the National Bank, in accordance with this Agreement and the credit agreements on the issuance of a credit/tranche.

• 5.2.7. The NFCI undertakes to immediately notify the National Bank of all circumstances capable of adversely affecting the performance by the NFCI of its obligations to the National Bank under this Agreement and the credit agreements on the issuance of a credit/tranche, including the repayment of the principal amount on the issued credits/tranches, the payment of accrued interest thereon and other amounts, including to immediately notify the National Bank of the following circumstances:

  • the receipt of claims and/or statements of claim brought against the NFCI by third parties for an amount equal to or exceeding 10 (ten) percent of the credit limit amount specified in paragraph 2.1. of this Agreement; judicial proceedings in which the NFCI participates as a defendant or co-defendant concerning the payment of funds in an amount equal to or exceeding 10 (ten) percent of the credit limit amount specified in paragraph 2.1. of this Agreement; coercive measures and sanctions applied to the NFCI by authorized state bodies, and all other circumstances capable of affecting the performance by the NFCI of its obligations to the National Bank under this Agreement;

  • the imposition of seizure on the property of the NFCI, including property provided by the NFCI to secure the performance of its obligations to the National Bank in accordance with the pledge agreements.

• 5.2.8. The NFCI undertakes to repay (return) the principal amount and accrued interest on the credits/tranches in full within the deadlines established by this Agreement and the credit agreements on the issuance of a credit/tranche, including early repayment – in the event the National Bank sends a corresponding written notification to the NFCI in connection with the occurrence of the circumstances set out in subparagraph 9 of paragraph 5.1. of this Agreement, within the deadlines established by subparagraph 10 of paragraph 5.1. of this Agreement.

6. SECURITY FOR THE PERFORMANCE BY THE NFCI OF ITS OBLIGATIONS UNDER THE CREDIT

6.1. The security for the performance by the NFCI of its assumed obligations to repay the principal amount of the credits/tranches received by the NFCI under this Agreement and the credit agreements on the issuance of a credit/tranche, the interest accrued thereon, other fees/payments, penalties in the form of fines, interest and other payments of the NFCI under this Agreement and the credit agreements on the issuance of a credit/tranche shall be ________________ owned by the NFCI by right of ownership in accordance with the pledge agreement. The specific list of property transferred by the NFCI to the National Bank as pledge to secure its obligations under this Agreement and the credit agreements on the issuance of a credit/tranche shall be specified in the pledge agreements concluded between the NFCI and the National Bank.

6.2. The property of the NFCI that is the subject of the pledge may be replaced, by agreement of the parties, with other property of the NFCI.

6.3. The pledge agreements must contain a reference to this Agreement as the principal obligation.

6.4. The pledge of property subject to registration in accordance with the requirements of the current legislation of the Kyrgyz Republic must be registered by the NFCI with the authorized body within the deadlines specified in the pledge agreement.

6.5. In the event of improper performance or non-performance by the NFCI of its obligations under this Agreement and the credit agreements on the issuance of a credit/tranche, as well as in other cases provided for by this Agreement and the credit agreements on the issuance of a credit/tranche, the NFCI grants the National Bank the right to immediately, starting from the next day of improper performance or non-performance by the NFCI of its obligations to the National Bank, commence the procedure for enforcing the pledged security.

6.6. The National Bank has the right to satisfy its claims in full at the expense of the property pledged by the NFCI by way of out-of-court enforcement against the property pledged by the NFCI and out-of-court sale of the subject of the pledge in accordance with the terms and requirements provided for by the relevant pledge agreements and the current legislation of the Kyrgyz Republic.

In the event that the amount received from the sale of the property pledged by the NFCI is insufficient to fully satisfy its claims against the NFCI, the National Bank has the right to obtain the missing amount from any other property of the NFCI.

6.7. The NFCI/pledgor is not entitled in any way or in any form to oppose the National Bank when the National Bank takes measures to enforce against the subject of the pledge. In the event of any opposition by the NFCI/pledgor when the National Bank takes the necessary measures to enforce against the subject of the pledge, the National Bank has the right to satisfy its claims in full through judicial proceedings, in accordance with the legislation of the Kyrgyz Republic. In this case, all corresponding expenses of the National Bank, including court expenses, shall be borne by the NFCO/pledgor.

7. LIABILITY OF THE PARTIES

7.1. The National Bank shall be liable for its obligations to disburse the loan in accordance with this Agreement and the loan agreements on the disbursement of the loan/tranche.

7.2. In the event of untimely transfer of the amount of the disbursed loan/tranche to the NFCO's account at a commercial bank within the time periods provided for in paragraph 3.6 of this Agreement, the National Bank shall pay the NFCO a one-time fine in the amount of 0.1% of the amount of the disbursed loan/tranche.

7.3. In the event of misuse by the NFCO of the received credit funds of the National Bank, in accordance with this Agreement and the loan agreements on the disbursement of the loan/tranche, the NFCO shall pay the National Bank a penalty in the form of a one-time fine in the amount of 0.1% of the amount of the received loan/tranche in accordance with the loan agreements on the disbursement of the loan/tranche. At the same time, the NFCO shall be obliged to return the entire amount of the loan/tranche within 5 (five) business days from the day of the corresponding written notification by the National Bank to the NFCO thereof, with payment of the penalty.

7.4. In the event of untimely and/or incomplete transfer by the NFCO of payments to repay the principal amount of the loan/tranche, interest accrued thereon and other payments arising from this Agreement and the loan agreements on the disbursement of the loan/tranche, the NFCO shall pay a penalty in the form of a fine in the amount of 0.1 percent of the amount of overdue debt for each day of delay, starting from the date of occurrence of the overdue debt and until its full repayment.

7.5. Interest on overdue debt shall be accrued on the basis of the actual number of days.

7.6. In the event that the NFCO provides, in violation of the established time periods or forms of provision, or provides incompletely, distorted or unreliable reports on the targeted use of the loan and information on the collateral security provided for by this Agreement and the pledge agreements concluded between the NFCO and the National Bank, as well as other information and documents requested by the National Bank in accordance with this Agreement and the loan agreements on the disbursement of the loan/tranche, the NFCO shall pay the National Bank a fine in the amount of 0.01 percent of the amount of the credit limit specified in paragraph 2.1 of this Agreement, for each case of such improper provision of reports/information.

7.7. Payment of fines and penalties shall not release the NFCO from fulfilling its obligations under this Agreement.

7.8. Extension of the terms of this Agreement, including the terms for the return by the NFCO of funds received from the National Bank under this Agreement, including in the event of force majeure circumstances, shall be carried out only on the basis of a decision of the Board of the National Bank.

8. SPECIAL CONDITIONS, GUARANTEES

8.1. The NFCO, by signing this Agreement, confirms and guarantees that:

    - a) being a legal entity under the legislation of the Kyrgyz Republic, it has the right to conclude this Agreement and the loan agreements on the disbursement of the loan/tranche in its own name;

    - b) the content of this Agreement and the loan agreements on the disbursement of the loan/tranche, and the corresponding fulfillment of their terms, will not cause a violation of the current legislation and any regulatory legal act of the Kyrgyz Republic, court decisions relating to the NFCO, and the charter of the NFCO;

    - c) the NFCO is fully familiarized with the requirements of the Regulation "On the lender of last resort to non-bank financial and credit organizations attracting deposits", approved by the resolution of the Board of the National Bank of the Kyrgyz Republic dated ___________ year No. ___.

8.2. In the event of force majeure circumstances (force majeure circumstances) caused directly or indirectly by the manifestation of extraordinary circumstances, including earthquakes and other natural disasters, actions and decisions of state bodies, entry into force of international treaties, adoption of regulatory legal acts of the Kyrgyz Republic, military actions and mass riots, which are beyond the control of the parties to this Agreement and prevent them from fulfilling their obligations under this Agreement and the loan agreements on the disbursement of the loan/tranche, the time periods for fulfilling these obligations shall be proportionately postponed for the duration of the said force majeure circumstances, subject to the conditions provided for in paragraph 7.8 of this Agreement, but only to the extent that they significantly affect the fulfillment on time of all of this Agreement and the loan agreements on the disbursement of the loan/tranche or that part thereof which was subject to fulfillment after the occurrence of the said force majeure circumstances.

8.3. Both parties to this Agreement must immediately, within 2 (two) business days, notify each other orally and in writing of the beginning and end of the force majeure circumstances preventing them from fulfilling their obligations under this Agreement and the loan agreements on the disbursement of the loan/tranche.

8.4. Failure by one of the parties to fulfill its obligations under this Agreement and the loan agreements on the disbursement of the loan/tranche shall not be considered a violation of this Agreement and the loan agreements on the disbursement of the loan/tranche if this is a consequence of force majeure circumstances, provided that the party affected by the force majeure circumstances has timely taken all necessary measures to eliminate such consequences.

9. PROCEDURE FOR RESOLVING DISPUTES

9.1. Disputes between the parties arising in the process of performance of this Agreement shall be settled through negotiations between the parties in order to develop a mutually acceptable solution.

9.2. In the event of impossibility of reaching agreement through negotiations between the parties, disputes between the parties shall be subject to consideration in a court of the Kyrgyz Republic in accordance with the legislation of the Kyrgyz Republic.

10. FINAL CONDITIONS

10.1. All relations between the National Bank and the NFKO are confidential in nature and the parties shall not have the right to disclose to third parties information received from each other during the period of validity of this Agreement, except in cases expressly provided for by the legislation of the Kyrgyz Republic and this Agreement, or when there is the corresponding consent of the other party.

10.2. Confidential information does not include information that is publicly available, as well as information contained in officially published communications and reports, advertising messages, etc.

10.3. The NFKO grants the National Bank the right to disclose information under this Agreement to third parties in cases of non-fulfillment or improper fulfillment by the NFKO of its obligations to the National Bank under this Agreement and loan agreements on the issuance of a loan/tranche.

10.4. The confidentiality provisions stipulated by this article do not apply in the case of assignment of rights, including the right of claim, and obligations under this Agreement and loan agreements on the issuance of a loan/tranche, in accordance with the legislation of the Kyrgyz Republic.

10.5. Amendments and additions may be made to this Agreement by mutual agreement of the parties by concluding additional agreements or exchanging letters, which will be an integral part of this Agreement.

10.6. This Agreement may not be amended, supplemented or terminated unilaterally, except in cases provided for by this Agreement.

10.7. All terms and provisions of this Agreement are binding on the Parties.

10.8. The Parties undertake to notify each other in writing of an upcoming change in their bank details no less than 5 (five) calendar days before the date of the changes. The risk of improper fulfillment of this Agreement arising in connection with untimely notification of a change in one's bank details shall be borne by the party that did not notify or untimely notified the other party of a change in its bank details.

10.9. In the event of reorganization or liquidation of the parties, all rights and obligations of the parties under this Agreement pass to the successors of the parties.

10.10. Loan agreements on the issuance of a loan/tranche concluded on the basis of this Agreement are an integral part of this Agreement and all provisions of this Agreement apply to them.

10.11. This Agreement enters into force on the day of its signing by both parties and is valid until the NFKO fully fulfills all its obligations to the National Bank under this Agreement and loan agreements on the issuance of a loan/tranche within the time periods provided for therein.

10.12. This Agreement is drawn up in 3 (three) original copies, having equal legal force, one copy for each of the parties, one copy for the authorized body carrying out registration of the pledge.

11. LEGAL ADDRESSES, DETAILS AND SIGNATURES OF THE PARTIES

National Bank:
National Bank of the Kyrgyz Republic
Bishkek, Chuy Ave., 168.
Position__________________
(signature)M.P.
Name of the NFKO:
Bishkek, ____________ St.
Account in ___ No.
BIC No.
TIN No.___________
OKPO No.___________
State Tax Inspectorate Code: _____
Position_________________
(signature)__________________M.P.

Appendix 1
to the Agreement on obtaining a lender of last resort loan dated “____” 20 No.__

LOAN AGREEMENT No. ______

to the Agreement on obtaining a lender of last resort loan No. _____________

Bishkek dated ________________ year

The National Bank of the Kyrgyz Republic, hereinafter referred to as the “National Bank”, represented by _______________, acting on the basis of _______________, on the one hand, and _________________, hereinafter referred to as the “NFKO”, represented by __________________, acting on the basis of ____________, on the other hand, hereinafter jointly referred to as the “Parties”, have concluded this loan agreement on the issuance of a loan/tranche (hereinafter – the “Loan Agreement”) as follows:

1. Subject of the loan agreement on the issuance of a loan/tranche

1.1. The National Bank, on the basis of the Agreement on obtaining a lender of last resort loan dated ___________________ (hereinafter – the Agreement) and this loan agreement, provides the NFKO with a loan/tranche in the amount of _________ (amount in words) soms on the terms provided for by this loan agreement and the Agreement.

2. Terms of provision of the loan/tranche

2.1. The loan/tranche is provided for a term of ___ months, from _________ to __________ year.

2.2. The date of provision of the loan/tranche is the day of transfer of funds under the loan/tranche to the NFKO's account in a commercial bank of the Kyrgyz Republic.

2.3. The National Bank transfers funds under the loan/tranche within 2 (two) business days from the moment the NFKO provides to the National Bank confirmation of the relevant authorized body on registration of pledge agreements for the loan/tranche requested by the NFKO from the National Bank in accordance with this loan agreement.

2.4. The credit funds issued by the National Bank to the NFKO under this Loan Agreement have a designated purpose and must be used by the NFKO for the purposes provided for in paragraph 2.5. of the Agreement and in accordance with the conditions provided for in paragraph 2.6. of the Agreement.

If the NFKO fails to comply with the conditions provided for in the first paragraph of this clause, the measures provided for by the Agreement will be applied to the NFKO.

3. Terms of use of the loan/tranche

3.1. For the use of the loan/tranche, the NFKO pays the National Bank a fixed interest rate in the amount of _____ percent per annum, during the entire term specified in paragraph 2.1. of this loan agreement.

3.2. Payment of accrued interest for the use of the loan/tranche is made by the NFKO on a monthly basis. Interest is accrued from the date of provision of the loan (excluding that date) to the date of repayment of the loan (including that date) on the actual outstanding balance of the loan based on 360 days in a year and the actual number of days in the month.

3.3. Repayment of the principal amount of the debt and/or accrued interest on the loan/tranche shall be made by the NFKO upon expiration of the term specified in paragraph 2.1 of this Agreement.

3.4. Repayment of the entire principal amount and all interest on the loan/tranche shall be made by the NFKO in accordance with the debt repayment schedule (Appendix 1), which is an integral part of this loan agreement.

3.5. The final settlement of the principal amount of the loan/tranche and accrued interest thereon shall be made on __________ year.

3.6. If the date of repayment of the principal amount of the loan/tranche and/or payment of accrued interest thereon and/or other payments (fines, penalties, etc.) falls on a holiday, non-working or weekend day, then repayment of the principal amount of the loan/tranche and/or accrued interest thereon and/or other payments (fines, penalties, etc.) shall be made on the nearest working day following the corresponding holiday, non-working or weekend day.

3.7. Interest and other payments on the loan/tranche shall be accrued on the basis of 360 days in a year and the calculated actual number of days in the month.

Payments for repayment of the principal amount on the loan/tranche and accrued interest thereon and other payments (fines, penalties, etc.) The NFKO shall transfer to the corresponding account in the National Bank (amounts for principal debt to account No.___________, amounts for interest payments to account No.________________).

4. Collateral security

4.1. The collateral security for the fulfillment by the NFKO of its obligations to repay the principal amount of the debt on the loan/tranche received by the NFKO under this loan agreement, accrued interest thereon, other fees/payments, penalties in the form of fines, penalties and other payments of the NFKO under this Loan Agreement and the Agreement shall be _________________. The specific list of property transferred by the NFKO to the National Bank as collateral to secure its obligations under this Loan Agreement and the Agreement shall be specified in the pledge agreements concluded between the NFKO and the National Bank.

5. Other terms

5.1. Other terms not provided for by this Loan Agreement, the rights, obligations and liability of the parties shall be governed by the Agreement.

5.2. Amendments and additions to this loan agreement shall be made by concluding a written supplementary agreement, which is an integral part thereof.

5.3. This loan agreement, including Appendix 1 thereto, is an integral part of the Agreement concluded between the National Bank and the NFKO, in 3 (three) original copies having equal legal force, 2 (two) copies – one for each of the parties, 1 (one) copy – for submission to the corresponding authorized body carrying out registration of the pledge.

6. LEGAL ADDRESSES, DETAILS AND SIGNATURES OF THE PARTIES

National Bank:
National Bank of the Kyrgyz Republic
Bishkek, Chuy Ave., 168.
Position__________________
(signature)M.P.
Name of the NFKO:
Bishkek, ____________ St.
Account in No.
BIC No.
TIN No.___________
OKPO No.___________
STI Code: _____
Position_________________
(signature)__________________M.P.

Appendix 1
to the Loan Agreement dated “__” _________
No. __________

LOAN REPAYMENT SCHEDULE

Loan amount: _______________soms

Interest rate (annual): ____%

Interest repayment: monthly

Calculation year: 360 days

Loan term: _____days

Loan disbursement date: “___” ___20.

Loan repayment date: “____” ___20.

Months

Repayment dates

Interest repayment*

Repayment

of principal amount

Total to be repaid

Total

• when calculating interest, the actual number of days of use of the loan is used

National Bank:
National Bank of the Kyrgyz Republic
Position__________________
(signature)M.P.
Name of the NFKO:
Position___
(signature)__________________M.P.

Appendix 2
to the Regulation
“On the lender of last resort to non-bank financial- credit organizations attracting deposits»

REPORT

on the targeted use of tranche No. ___ dated _______

for the last-resort loan dated _______________

Date of transaction

Purpose of transaction

Personal account No.

Amount issued in soms

Total:

Chief Accountant of the NFCO ________________
(signature)

I confirm the targeted use of funds in the amount of _______ soms of this tranche.
___________________________________________ ________________ (position) (signature)