Regulation on the Liquidity Support Loan

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Date of creation: 2025-07-08

Approved by the resolution of the Board of the National Bank of the Kyrgyz Republic No. 50/1 dated 03.09.2015

REGULATION on the liquidity support loan

(As amended by the resolutions of the Board of the National Bank of the Kyrgyz Republic of December 2, 2015 No. 74/4, of May 31, 2017 No. 21/16, of October 25, 2017 No. 2017-P-09/45-9-(NPA), of December 7, 2018 No. 2018-P-15/52-6-(NPA), of June 28, 2019 No. 2019-P-09/34-2-(NPA), of September 25, 2019 No. 2019-P-09/49-6-(NPA), of December 14, 2022 No. 2022-P-09/78-12-(NPA), of June 27, 2025 No. 2025-P-09/31-3-(NPA))

I. General Provisions

1. This Regulation "On the Liquidity Support Loan" (hereinafter - the Regulation) defines the general conditions and procedure for providing a loan by the National Bank of the Kyrgyz Republic (hereinafter - the National Bank) to a commercial bank of the Kyrgyz Republic holding a license from the National Bank (hereinafter - the Bank).

2. The liquidity support loan (hereinafter - the loan) is provided in accordance with Articles 6 and 17 of the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic" and this Regulation.

3. The loan is provided to the Bank for the purpose of protecting the integrity and ensuring the stability of the banking system, preventing systemic risk, maintaining the liquidity of the Bank, and protecting the interests of depositors.

4. The Bank is not entitled to use the loan for the payment of deposits (deposits) to officials. The National Bank may establish restrictions on the payment of deposits (deposits) to persons associated with the Bank and affiliated persons of the Bank.

5. The Bank is not entitled to use the loan for the payment of administrative expenses, including all types of remuneration/bonuses to Bank employees. In addition, the National Bank has the right to make a decision on the reduction of the Bank's administrative expenses.

6. The decision on the provision of the loan, the terms of provision, the number of extensions, as well as the terms and volume of the loan are taken by the Board of the National Bank
   based on the recommendation of the Supervisory Committee of the National Bank.

7. The loan is provided in the national currency in compliance with the general principles of lending: term, cost, repayability, and security.

8. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/16);

9. The obligation to repay the loan is secured by collateral. Requirements for collateral, the volume of sufficiency (in percentage), type, and other parameters of collateral security are established by the Board of the National Bank
   based on the recommendation of the Supervisory Committee of the National Bank.

10. To obtain a loan, the Bank is obliged to provide the following documents to the National Bank:

1. an application-petition for the provision of a loan indicating the purpose of obtaining the loan;
2. resolutions of the Board and the Board of Directors of the Bank on obtaining a loan and on providing assets and/or property as security for the requested loan;
3. copies of documents confirming the ownership and/or claim rights of the pledgor to the subject of the pledge;
4. documents containing a description of the subject of the pledge and its valuation;
   4-1) an action plan that will reflect the Bank's measures to resolve existing liquidity problems and repay the requested loan, approved by the Board of Directors and the Board of the Bank;
5. The National Bank has the right to request other documents necessary for considering the issue of providing a loan to the Bank.

11. The Board of the National Bank has the right to establish certain requirements that the Bank must fulfill before the consideration of the issue of providing a loan begins.

12. In the event of the Board of the National Bank making a decision to refuse to provide the Bank with a loan, the National Bank notifies the Bank in writing.

II. Loan Security

13. The Bank's obligation to repay the loan is secured by collateral. The subject of the pledge provided as security for the loan cannot be pledged or re-pledged to a third party.

14. As security for the loan, the following types of pledges may be used:

1. state securities of the Cabinet of Ministers of the Kyrgyz Republic and notes of the National Bank (hereinafter - securities);
2. deposits in the National Bank or in another financial and credit organization acceptable to the National Bank;
3. gold and other precious metals;
4. foreign currency;
5. claim rights on the Bank's credit portfolio;
6. other types of assets and property acceptable to the National Bank, in cases established by the Board of the National Bank.

14-1. Shares of legal entities supervised by the National Bank cannot be the subject of a pledge.

15. The subject of the pledge must belong to the pledgor on the right of ownership and not be encumbered with other obligations.

16. Insufficient security is grounds for refusing to provide the Bank with the requested loan amount.

III. Procedure for Providing and Repaying the Loan

17. The loan may be issued in tranches (stages) within the credit line opened in accordance with the Agreement on the Opening of a Credit Line (hereinafter - the Agreement). Standard forms of the Agreement, the Credit Agreement on the issuance of a loan/tranche, and pledge agreements are provided in the Appendices.

18. The credit line is opened for a term determined by the Board of the National Bank
    based on the recommendation of the Supervisory Committee of the National Bank. Tranches within the credit line are issued for a term not exceeding the closing date of the credit line. The closing date of the credit line and/or the date of final repayment of tranches issued within the credit line may be extended by the decision of the Board of the National Bank.

19. The consideration of the issue of providing a tranche within the credit line is carried out based on the Bank's Application for obtaining a tranche (hereinafter - the Application). The Application is provided to the National Bank on paper. The provision of a tranche is carried out based on the Credit Agreement on the provision of a loan (tranche) concluded between the National Bank and the Bank.

20. Repayment of the principal amount of the tranche and accrued interest on it are made on the terms defined in the Agreement and Credit Agreements.

21. The National Bank, in the event of the Bank's failure to fulfill its obligations to repay the loan, or non-targeted use of the loan provided to the Bank in accordance with this Regulation, may satisfy its claims through extrajudicial enforcement against the subject of the pledge.

21.1. In the event of non-targeted use of funds provided by the National Bank and/or the provision of unreliable information regarding collateral security, as well as regarding the use of provided funds, the National Bank has the right to apply impact measures provided for by the regulatory acts of the National Bank, as well as to demand early repayment of the provided funds.

IV. Calculation of Interest on the Loan

22. The interest rate on the loan is established by the Board of the National Bank. Interest on the amount of each tranche of the loan is accrued according to the simple interest formula for the period of actual use of the issued tranche, based on the number of calendar days in the year 360, according to the following formula:

P = (C * I * 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 term of use of the tranche.

23. The calculation of the actual number of calendar days during which the Bank used the issued tranche includes weekends and holidays established by legislation or declared by the Cabinet of Ministers of the Kyrgyz Republic.

V. Special Conditions

24. The National Bank has the right at any time, at its discretion, to conduct an inspection of the Bank's activities.

25. During the period of action of the credit line, the Bank is obliged to comply with all requirements defined by the Agreement, Credit Agreements, and Pledge Agreements, as well as decisions of the National Bank.

26. In case of non-compliance by the Bank during the period of action of the credit line with requirements defined by decisions of the National Bank, the Agreement, Credit Agreements, and/or Pledge Agreements, the National Bank has the right to suspend the action of the credit line and demand early repayment of the provided tranches and accrued interest on them. In case of non-fulfillment by the Bank of the requirement for early repayment of obligations, the National Bank may start the procedure of extrajudicial enforcement against the subject of the pledge or in a non-accountable order deduct from the correspondent account in the National Bank the amount necessary to repay the Bank's debt.

VI. Liability and Unlawful Actions

27. The National Bank is not responsible for any losses arising as a result of the Bank's non-fulfillment or partial fulfillment of the conditions for providing the loan.

28. The provision of a loan by the National Bank cannot be considered as the National Bank accepting obligations towards the Bank.

29. At any stage of obtaining and using the loan, the National Bank has the right to apply impact measures against the Bank provided for by the regulatory legal acts of the National Bank.

30. The Bank bears responsibility for compliance with the targeted use of the loan and all other conditions of the loan.

Appendix 1

AGREEMENT on the opening of a credit line
City of Bishkek
No. _________ from ______________
The National Bank of the Kyrgyz Republic, hereinafter referred to as "the National Bank", represented by , acting on the basis of the order of the National Bank of the Kyrgyz Republic "" dated "____" _______20___year No. and the resolution of the Board of the National Bank of _____________ year No. _______, on the one hand, and ______________, hereinafter referred to as "the Bank", represented by ___________________, acting on the basis of the Charter, on the other hand, hereinafter jointly referred to as "the Parties", have concluded this Agreement on the opening of a credit line (hereinafter - the Agreement) on the following:

1. Terms and Definitions
   For the purposes of this Agreement, the following terms are used.
   Credit Limit - the maximum amount of the total sum established in accordance with this Agreement, within which the Bank has the right to obtain loans/tranches during the term of this Agreement, subject to compliance with the Basic Requirements.
   Basic Requirements - requirements established by the Regulation "On the Liquidity Support Loan", approved by the resolution of the Board of the National Bank of the Kyrgyz Republic of ___________ year No. _____.
   Period of Availability of the Credit Limit - the period of time from the moment of signing this Agreement until __________ year inclusive, during which the Bank has the right to obtain loans/tranches within the opened credit line under this Agreement.
   Loan/Tranche - monetary funds provided by the National Bank to the Bank on the terms provided for in this Agreement, in a total amount not exceeding the Credit Limit. Loans/tranches are provided in accordance with the Bank's Applications. The terms of loans/tranches are determined by specific Credit Agreements on the issuance of a loan/tranche. Free Balance of the Credit Limit - the amount of monetary funds of the credit limit remaining after the last issuance of a loan/tranche by the National Bank to the Bank and equal to the difference between the credit limit and the total amount of issued but unpaid (i.e., active) loans/tranches in accordance with the terms of this Agreement. The free balance of the credit limit may be issued to the Bank as a loan/tranche within its size and the period of availability of the credit limit, as well as with sufficient collateral security. Credit Agreement on the issuance of a loan/tranche - a contract concluded by the Parties within the framework of this Agreement, on the basis of which the National Bank provides the Bank with a loan/tranche, and being an integral part of this Agreement. Date of provision of a loan/tranche - the day of transfer of the loan/tranche amount to the Bank's correspondent account in the National Bank. Date of repayment of a loan/tranche - the day of receipt of funds from the Bank to the account of the National Bank, in an amount covering the volume of claims of the National Bank under this Agreement and Credit Agreements on the issuance of a loan/tranche, including the amount of the principal debt, accrued interest on it, and other payments, but no later than ______________ year.

2. Subject of the Agreement
   2.1. The National Bank provides (opens) to the Bank a credit line with a credit limit in the amount of _____________ (amount in words) som on the terms of term, repayability, cost, security, and other conditions defined in this Agreement, and the Bank undertakes to return to the National Bank the loans/tranches received within the opened credit line and pay interest for their use in the amount, terms, and conditions provided for in this Agreement and Credit Agreements on the issuance of a loan/tranche.
   2.2. The credit line with the credit limit is provided (opened) from ___________ year to __________ year, upon the expiration of which the Bank must fully repay the debt on loans/tranches provided in accordance with this Agreement, including the amount of the principal debt, accrued interest, and other payments on loans/tranches.
   2.3. Within the established credit limit during the term of this Agreement, but no later than the period of availability of the credit limit, the Bank has the right to obtain the next loan/tranche within the free balance of the credit limit, subject to compliance with the basic requirements at the time of submitting the corresponding Application for the issuance of a loan/tranche. Compliance with the basic requirements is confirmed by the corresponding information and documents provided by the Bank to the National Bank at the time of submitting the Application for the issuance of a loan/tranche.
   2.4. The Bank's debt balance on received loans/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 Bank under this Agreement have a targeted purpose and must be used by the Bank to maintain liquidity. At the same time, the provided credit funds are primarily directed to satisfy claims for the return of deposits (deposits) of physical persons.
   A report on the targeted use of received funds is provided by the Bank on a monthly basis by the 5th day of the month following the reporting month, according to Appendix 1 to this Agreement.
   2.6. The Bank is not entitled to use the credit funds provided by the National Bank for lending, for conducting operations in the securities market. The National Bank has the right to establish restrictions on operations with persons associated with the Bank or affiliated persons of the Bank, including the payment of deposits (deposits) to physical and legal persons associated with the Bank.

3. Procedure for Issuing Loans/Tranches
   3.1. To obtain a loan/tranche within the credit line, the Bank must submit an Application for the issuance of a loan/tranche to the National Bank indicating the amount, term of the loan/tranche, and the list of assets offered as security for the loan/tranche.
   Documents and information on the Bank's compliance with the basic requirements must be attached to the Bank's application for the issuance of a loan/tranche.
   3.2. The loan/tranche may be obtained with a repayment term of no more than _______ months from the moment of concluding this Agreement.
   3.3. Loans/tranches will be provided by the National Bank to the Bank with the execution of corresponding Credit Agreements on the issuance of a loan/tranche, in which specific conditions for the issuance of the loan/tranche will be stipulated: size (amount), term, interest rate, conditions for repayment of the principal amount and interest on the loan/tranche, etc. The specified Credit Agreements on the issuance of a loan/tranche must contain a reference to this Agreement.
   3.4. The Bank is obliged to comply with all requirements of the National Bank regarding the submission of necessary documents for obtaining a loan/tranche. The National Bank has the right to request additional documents and information from the Bank regarding the Bank's application for the issuance of a loan/tranche.
   3.5. The provision of a loan/tranche will be carried out by the National Bank after studying all necessary materials and documents directly related to the issuance of a loan/tranche in accordance with the basic requirements.
   The National Bank, having considered the completeness, justification, and compliance of the documents provided by the Bank for the issuance of a loan/tranche, makes a decision on the provision or refusal to issue a loan/tranche, in accordance with its internal procedures in compliance with the terms of this Agreement.
   3.6. The loan/tranche will be provided to the Bank within 2 (two) working days after the Bank provides the National Bank with confirmation of the corresponding authorized body on the registration of the pledge agreement in accordance with the signed Credit Agreement on the issuance of a loan/tranche. The loan/tranche may be issued to the Bank before the completion of pledge agreement registration procedures in authorized bodies by the decision of the Board of the National Bank.

4. Conditions for Calculation, Accrual, and Payment of Interest for the Use of a Loan/Tranche and Other Amounts
   4.1. For the use of loans/tranches provided by the National Bank, the Bank undertakes to pay interest to the National Bank. Interest is accrued on the Bank's debt balance on the principal amount of the loan/tranche.
   The National Bank's interest rate on the loan is fixed and established at the amount of _____ percent per annum.
   4.2. Accrual and payment of interest for the use of a loan/tranche is carried out on a monthly basis.
   4.3. Interest is accrued from the date of provision of the loan/tranche (including this day) to the date of repayment of the loan (excluding this date) on the actual debt balance on the loan/tranche from the calculation of 360 days in a year and the actual number of days in a month.
   4.4. Repayment of the principal debt on the loan/tranche is made in a lump sum no later than the working day of the end of the term of this Agreement.
   4.5. The procedure for payment of the principal debt and accrued interest on individual loans/tranches will be determined by separate Credit Agreements on the issuance of a loan/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 a loan/tranche in accordance with this Agreement and Credit Agreements on the issuance of a loan/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 Bank to fulfill its obligations under this Agreement and Credit Agreements on the issuance of a loan/tranche.
   5.1.3. During the term of this Agreement, the National Bank has the right to conduct events to check the financial condition of the Bank, the condition of security for the opened credit line, and the targeted use of the loan/tranche.
   5.1.4. The National Bank has the right to request and receive from the Bank any information necessary to it, including information on the condition of security for the credit line, targeted use of the loan/tranche, including Bank-certified copies of payment documents on the transfer of amounts and other information and documents for monitoring and control purposes.
   5.1.5. The National Bank has the right in a non-accountable (dispute-free) order without the approval and consent of the Bank to withdraw in any currency (regardless of the currency of the loan/tranche issued to the Bank) from the Bank's correspondent account opened in the National Bank all amounts of overdue debt on the principal amount of loans/tranches, accrued interest on them, penalties in the form of fines and penalties, and other amounts provided for in this Agreement and Credit Agreements on the issuance of a loan/tranche, including losses and expenses of the National Bank incurred as a result of violations of the Bank's fulfillment of obligations under this Agreement and Credit Agreements on the issuance of a loan/tranche or violations by the Bank of the terms and provisions of pledge agreements concluded between the Bank and the National Bank as security for this Agreement and Credit Agreements on the issuance of a loan/tranche.
   5.1.6. In the event that the Bank does not fulfill the requirements of the National Bank regarding the provision of additional security or replacement of the subject of the pledge provided by the Bank as security for this Agreement and Credit Agreements on the issuance of a loan/tranche, the National Bank has the right in a non-accountable (dispute-free) order to deduct from the Bank's correspondent account opened in the National Bank all or partial amounts of the Bank's debt under this Agreement, Credit Agreements on the issuance of a loan/tranche, including the principal amount of loans/tranches, accrued interest on them, penalties and sanctions, or the corresponding amount equivalent to the missing security.
   5.1.7. In the event of non-accountable (dispute-free) deduction/withdrawal of monetary funds in foreign currency, conversion (transfer) of withdrawn/deducted monetary funds into the currency of the loan/tranche issued by the National Bank to the Bank is carried out in accordance with the official rate established by the National Bank on the date of deduction/withdrawal.
   5.1.8. The National Bank has the right in cases provided for in this Agreement, Credit Agreements on the issuance of a loan/tranche, and pledge agreements concluded between the National Bank and the Bank in accordance with this Agreement, to enforce against the subjects of the pledge provided by the Bank to the National Bank.
   5.1.9. The National Bank has the right unilaterally to refuse to issue a loan/tranche and/or suspend the issuance of a loan/tranche and/or demand the fulfillment by the Bank of obligations under this Agreement and Credit Agreements on the issuance of a loan/tranche, including repayment of the principal debt on loans/tranches, payment of accrued interest for the actual time of use of loans/tranches, and other amounts due to the National Bank in accordance with this Agreement and Credit Agreements on the issuance of a loan/tranche, in any of the following cases:

1. in the event of non-targeted use of the loan/tranche by the Bank;
2. in the event of non-provision or untimely provision by the Bank of documents and information requested by the National Bank in accordance with this Agreement and Credit Agreements on the issuance of a loan/tranche;
3. in the event of non-fulfillment or improper fulfillment by the Bank of obligations undertaken under this Agreement and Credit Agreements on the issuance of a loan/tranche;
4. in the event of the Bank violating repayment schedules for debt according to Credit Agreements on the issuance of a loan/tranche;
5. in the event of the Bank violating the provisions of pledge agreements on property concluded between the Bank and the National Bank, provided by the Bank as security for the credit line opened to the Bank by the National Bank in accordance with this Agreement;
6. in the event that the National Bank has information based on official data or data from authorized bodies that a significant, in the opinion of the National Bank, deterioration of the Bank's financial position has occurred and/or in the event of the emergence of other circumstances that may lead to non-fulfillment or improper fulfillment by the Bank of its obligations to the National Bank under this Agreement and Credit Agreements on the issuance of a loan/tranche;
7. in the event that the information provided by the Bank to the National Bank in accordance with this Agreement and Credit Agreements on the issuance of a loan/tranche is unreliable, substantially incomplete/distorted, and/or knowingly false.
   5.1.10. The National Bank notifies the Bank in writing of its claims specified in subparagraph 5.1.9 of this paragraph.
   In the event of the National Bank ceasing the issuance of a loan/tranche for reasons specified in subparagraph 5.1.9, the National Bank has the right unilaterally to close (prohibit the right to) the Bank's free balance of the credit limit for the credit line opened in accordance with this Agreement, and demand from the Bank early repayment of the principal amount of loans/tranches and