Regulation on the Procedure for Placement, Reverse Repurchase, and Settlement with Foreign Currency-Denominated State Treasury Bonds of the Government of the Kyrgyz Republic through the National Bank of the Kyrgyz Republic — NBKR — KG


		Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated April 27, 2016 No. 19/13

REGULATION on the procedure for placement, reverse repurchase, and settlement with state treasury bonds of the Government of the Kyrgyz Republic, denominated in foreign currency, through the National Bank of the Kyrgyz Republic

Chapter 1. General Provisions

This Regulation is developed in accordance with the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Regulation "On the Issue, Placement, Circulation and Redemption of State Securities of the Kyrgyz Republic", approved by the Resolution of the Government of the Kyrgyz Republic dated October 2, 2008 No. 556, and defines the procedure for the National Bank of the Kyrgyz Republic (hereinafter - the National Bank) to carry out operations on the placement, reverse repurchase, and settlement with state treasury bonds of the Government of the Kyrgyz Republic, denominated in foreign currency (hereinafter - GKO-V) and issued by the Ministry of Finance of the Kyrgyz Republic (hereinafter - the Ministry of Finance, Issuer) on the territory of the Kyrgyz Republic.
The National Bank acts as the organizer of auctions, depository, and settlement operator on the basis of a contract concluded with the Ministry of Finance, in accordance with the Regulation "On the Issue, Placement, Circulation and Redemption of State Securities of the Kyrgyz Republic", approved by the Resolution of the Government of the Kyrgyz Republic dated October 2, 2008 No. 556, and takes into account the position of the Issuer (letter of the Ministry of Finance of the Kyrgyz Republic dated March 15, 2016 No. 10-1-2/3009).
GKO-V are currency liabilities of the Ministry of Finance.
The volume of each issue of GKO-V, the currency in which GKO-V are denominated, the nominal value, and the coupon rate are determined by the Issuer.
The National Bank does not bear any obligations under GKO-V, including credit and other risks associated with their servicing.
In accordance with the Regulation "On the Issue, Placement, Circulation and Redemption of State Securities of the Kyrgyz Republic", approved by the Resolution of the Government of the Kyrgyz Republic dated October 2, 2008 No. 556, the Issuer has the right to attract another organizer of auctions, depository, and settlement operator other than the National Bank to carry out operations on the placement, circulation, and redemption of GKO-V.
The placement of GKO-V is carried out by the National Bank on an auction basis. The auction is conducted by a method whereby bids are satisfied at the prices specified in them.
The reverse repurchase of GKO-V is carried out by the Issuer through the National Bank and is conducted at a price established by the Issuer, within the framework of the volume of reverse repurchase of GKO-V announced by the Issuer.
The assignment of a registration number to GKO-V is carried out in accordance with the Regulation "On the procedure for assigning a registration number to state and municipal securities and maintaining a register of state and municipal securities in the Kyrgyz Republic", approved by the Resolution of the Government of the Kyrgyz Republic and the National Bank dated September 13, 2010 No. 201.
The right to participate in auctions for the primary placement and reverse repurchase of GKO-V is granted to direct participants who meet the requirements of this Regulation. Indirect participants participate in auctions by submitting bids through commercial banks (hereinafter - banks) that are direct participants, and/or acquire GKO-V in the secondary market.

Chapter 2. Definitions and Terms

For the purposes of this Regulation, the following definitions and terms are applied.

Auction - a form of GKO-V trading, during which the satisfaction of bids is carried out on a competitive basis.
Competitive Sale - a sale with the indication of the price and quantity of GKO-V acquired at the specified (stated) price.
Non-competitive Sale - the sale of GKO-V at the weighted average price established at the auction.
Indirect Participant - an individual or legal entity that is not a direct participant of the auction, submitting bids for the purchase of GKO-V through a bank that is a direct participant.
Reverse Repurchase - an operation for the purchase by the Issuer of GKO-V in circulation.
Issue Parameters - information about the issue of GKO-V: the name of the GKO-V currency, number, date, issue volume, redemption date, and other information characterizing GKO-V.
Redemption of GKO-V - the crediting of the nominal value to the accounts of holders of the redeemed issue of GKO-V.
Direct Participant - a commercial bank licensed by the National Bank and having the right to conduct banking operations in foreign currency (hereinafter - the Bank).
Cut-off Price - the price at which the satisfaction of bids ends.
Issuer - the Ministry of Finance, acting on behalf of the Government of the Kyrgyz Republic.

Chapter 3. Conditions for Granting the Status of a Direct Participant in the GKO-V Market

A Bank wishing to work as a direct participant in the GKO-V market must meet at least the following criteria:

have a license from the National Bank to conduct banking operations in the national currency without restrictions;
have a license from the National Bank for the right to conduct banking operations in foreign currency without restrictions;
have a correspondent account in foreign currency;
not be in processes and/or procedures provided for by the Law of the Kyrgyz Republic "On the Conservation, Liquidation and Bankruptcy of Banks" (conservation, rehabilitation, rehabilitation, voluntary or forced liquidation, restructuring and reorganization);
have documents in place defining the risk management policy when working with GKO-V, the procedure for maintaining depository accounting of GKO-V, the internal control system when working with GKO-V;
have a concluded contract with the National Bank on activities in the GKO-V market, placed through the National Bank (Appendix 1).

As a direct participant, the Bank is obliged to timely provide reports in the format established by the National Bank, as well as other information related to activities as a direct participant, upon request by the National Bank and/or the Ministry of Finance.

Chapter 4. Conditions and Procedure for the Primary Placement of GKO-V

The National Bank conducts an auction on the basis of the order received from the Issuer and the global certificate for conducting an auction for the placement of GKO-V of established forms. The structure and form of documents for the issue and placement of GKO-V are agreed with the National Bank and approved by an order of the Issuer. Documents necessary for conducting the GKO-V auction are transmitted by the Issuer to the National Bank no later than two business days before the date of the auction. The issue parameters of GKO-V are published by the Issuer on the Issuer's website and in the media. The National Bank publishes the issue parameters of GKO-V on the National Bank's website.
An application to participate in the auction for the placement of GKO-V is submitted by a direct participant to the National Bank in documentary form according to the form of Appendix 2 to this Regulation. The application must be sealed in an opaque envelope. A direct participant may submit only one application to the auction. In the event of receipt of more than one application from a direct participant for one auction, he is not allowed to participate in this auction, and all applications submitted by him for this auction are deemed invalid.
The application in documentary form must be dropped into a box labeled "For applications for GCB auctions", located in the office of the Department of Document Management and Control of the Department for Work with Documents of the National Bank. The direct participant must register the fact of submitting the application in the journal of registration of applications.
The application must be provided to the National Bank on the day of the auction by 12:00. The submitted application is irrevocable.
Each page of the application must be certified by the signature of an authorized person and the seal of the direct participant. The application must contain the official name of the direct participant, the date of submission of the application, the date of the auction, the number of the placed issue, the quantity of securities purchased, the price, and the cost of purchase.
Bank applications may contain both applications in their own name (own applications) and aggregated applications on behalf of their clients - indirect participants (client applications).
Direct participants cannot submit their own application with a non-competitive offer.
The own application of a direct participant with competitive offers must meet the following requirements:

number of lots - no more than 5,
arrangement of lots - in descending order of purchase price;
quantity of securities per each application - multiple of 100;
minimum quantity of securities in one application - not less than 1000 units.

The total quantity of securities in the own applications of a direct participant must not exceed the quantity of securities placed, i.e., the total volume of own applications by nominal value must not exceed the announced volume of the issue.
A client application with competitive offers must meet the following requirements:

quantity of securities per each lot - multiple of 10;
minimum quantity of securities in one lot - not less than 100 units.

There is no restriction on the minimum volume of an application with a non-competitive offer submitted from one client.
The maximum volume of applications submitted from one client, including the competitive and non-competitive parts, must not exceed the announced volume of the issue.
Applications submitted in violation of the established procedure for formatting are deemed invalid and are not admitted to the auction.
The National Bank ensures the confidentiality of the information specified in the application of the auction participant, except for cases of disclosure of information in the manner established by the legislation of the Kyrgyz Republic.
Applications with non-competitive offers are satisfied first. The maximum limit of satisfaction is 30% of the issue volume by nominal value. In the event that the total volume of applications with non-competitive offers exceeds 30% of the GKO-V issue volume by nominal value, their satisfaction is carried out on a proportional basis.
The volume of the issue remaining after satisfying applications with non-competitive offers is distributed among applications with competitive offers. Lots of applications are ranked by purchase prices in descending order and are satisfied, starting with the lot with the maximum price, then - in descending order until the cut-off price is reached. In the event that more than one application is submitted at the cut-off price, the distribution of securities among these applications is carried out on a proportional basis.
If both the own application of the bank and the applications of its clients are submitted at the cut-off price, the distribution of securities is carried out among these applications on a proportional basis.
A non-competitive application is satisfied at the weighted average price.
Preliminary processing of applications admitted to the auction is carried out on the day of the auction from 13:00 to 14:30.
Preliminary results of the auction are transmitted to the Issuer on the day of the auction no later than 15:00 for the Issuer to make a decision.
The Issuer may make one of the following decisions: approve the results of the auction or declare the auction unsuccessful.
The Issuer approves the results of the auction within the following limits:

maximum satisfaction of applications is limited to a 25% excess of the issue volume;
minimum satisfaction of applications is ensured within the following limits:

in the event that the sum of submitted applications is equal to or exceeds the volumes of the announced emission, the minimum satisfaction of applications is 25% of the announced emission;

in the event that the sum of submitted applications is less than the announced emission, the minimum volume of satisfied applications is established within the limits of the submitted applications.

The Issuer has the right to declare the auction unsuccessful in the following cases:

with the participation of less than three participants in the auction;
if the weighted average yield of accepted applications exceeds by 15% the weighted average yield established at the last auction.

The Issuer approves the results of the auction by 16:00 on the day of the auction.
After the Issuer approves the results of the auction, final processing of applications is carried out and summary results of the auction are published.
In the event of the Issuer approving the results of the auction, summary results of the auction are communicated to its direct participants: volumes of demand and placement, weighted average prices, maximum application price and cut-off price; separately to each direct participant, the quantity and cost of GKO-V purchased by him and his clients as a result of participation in the auction are communicated.
Summary results of the auction are published on the website of the National Bank.

Chapter 5. Conditions and Procedure for Reverse Repurchase of GKO-V

Information on the conditions (price, volume, and registration number of the GKO-V being purchased) and the date of the reverse repurchase of GKO-V, for which reverse repurchase is offered, is published by the Issuer on the Issuer's website, and also published by the National Bank on the National Bank's website. Reverse repurchase of GKO-V is carried out among direct participants who meet the requirements of this Regulation; indirect participants participate by submitting applications through banks.
An application to participate in the reverse repurchase of GKO-V is submitted by a direct participant to the National Bank in documentary form by 12:00 according to the form of Appendix 3 to this Regulation. The application must be sealed in an opaque envelope. A direct participant may submit only one application. In the event of receipt of more than one application from a direct participant, he is not allowed to participate in this reverse repurchase, and all applications submitted by him for this reverse repurchase are deemed invalid.
The application in documentary form must be dropped into a box labeled "For applications for GCB auctions", located in the office of the Department of Document Management and Control of the Department for Work with Documents of the National Bank. The direct participant must register the fact of submitting the application in the journal of registration of applications.
The application must be provided to the National Bank on the day of the reverse repurchase by 12:00. The submitted application is irrevocable.
Each page of the application must be certified by the signature of an authorized person and the seal of the direct participant. The application must contain the official name of the direct participant, the date of submission of the application, the date of the reverse repurchase, and the registration number of the GKO-V being repurchased.
Bank applications may contain both applications in their own name (own applications) and aggregated applications on behalf of their clients - indirect participants (client applications).
The minimum quantity of securities in the own application of a direct participant for reverse repurchase must meet the requirement: the quantity of securities must be not less than 100 units and multiple of 10.
The quantity of securities in the application of a direct participant must not exceed the quantity of securities being repurchased, i.e., the volume of the own application by nominal value must not exceed the announced volume of the reverse repurchase.
The minimum quantity of securities submitted from one client must meet the requirement: be not less than 10 units and multiple of 10.
The quantity of securities submitted from one client must not exceed the announced volume of the reverse repurchase.
Applications filled in violation of the formatting procedure are deemed invalid and are not admitted to the reverse repurchase.
The National Bank ensures the confidentiality of the information specified in the application of the participant of the reverse repurchase, except for cases of disclosure of information in the manner established by the legislation of the Kyrgyz Republic.
Applications of participants of the reverse repurchase are executed for the quantity of securities specified in them. The cost of the application is calculated by multiplying the quantity of securities specified in the application by the price established by the Issuer. In the event that the total volume of applications with offers for reverse repurchase exceeds the volume of reverse repurchase established by the Issuer by nominal value, their satisfaction is carried out on a proportional basis.
Processing of applications admitted to the reverse repurchase is carried out on the day of the reverse repurchase from 13:00 to 14:00. No later than 14:30 on the day of the reverse repurchase, the results of the reverse repurchase are transmitted to the Issuer.
Final results are published no later than 15:00 on the day of the reverse repurchase.
Summary results of the reverse repurchase are published in periodical publications and on the website of the National Bank.

Chapter 6. Settlements

As a result of the auction for the placement of GKO-V, the direct participant makes a transfer of funds in foreign currency in full amount to the corresponding account of the Issuer in foreign currency in the National Bank to pay for the purchased quantity of GKO-V (according to satisfied applications for participation in the auction for placement) for 1 (one) business day before the date of issue of GKO-V. When transferring funds in foreign currency, the direct participant must necessarily indicate the recipient of the funds (the Issuer), the account number of the Issuer in foreign currency in the National Bank, the full and correct basis and purpose of the payment.
Partial payment of purchased GKO-V is not allowed. In the event that a direct participant of the auction has not credited in full and in a timely manner (in accordance with paragraph 66 of this Regulation) funds in foreign currency to the corresponding account in foreign currency of the Issuer in the National Bank to pay for the purchased quantity of GKO-V on the date of issue of GKO-V, his application is annulled. In this case, the direct participant of the auction is obliged to pay the Issuer a penalty in national currency in the amount of one percent of the nominal value of the purchased GKO-V at the official exchange rate established by the National Bank on the date of issue of GKO-V. Until the penalty is paid, the direct participant of the auction is not admitted to subsequent auctions.
The direct participant undertakes to independently pay all direct and indirect expenses for correspondent bank transfers that may arise in operations specified in paragraph 66 of this Regulation.
On the date of issue of GKO-V, the National Bank transfers GCB to the depository account of the direct participant after receiving confirmation (account statement) from the correspondent bank of the National Bank about the crediting of funds in foreign currency in full amount to the correspondent account of the National Bank.
After the completion of settlements as a result of the auction for the placement of GKO-V, the National Bank provides the direct participant of the auction with a receipt certifying the right of ownership to the purchased GKO-V (Appendix 4).
Settlements as a result of the reverse repurchase are carried out within five business days after the date of the reverse repurchase of GKO-V.
The Issuer on the next business day after the reverse repurchase of GKO-V ensures a sufficient volume of funds in foreign currency in the current account of the Central Treasury of the Ministry of Finance in the National Bank, through which the payment for the purchased quantity of GKO-V according to the results of the conducted reverse repurchase will be made.
The National Bank on the basis of the payment order of the Central Treasury of the Ministry of Finance on behalf of the Issuer makes a transfer of funds for the reverse repurchase of GKO-V on a date determined by the conditions of individual agreements. The Issuer bears responsibility for the correctness of the transfer amount, for the timely provision of the payment order for the timely transfer of funds to the direct participant, for the correctness of the banking details of the payment.
Settlements on the payment of coupon payments and redemption of GKO-V are made on the date of coupon payments and on the date of redemption, respectively, according to the issue conditions of GKO-V. In the event that the date of the coupon payment and the date of redemption falls on a non-working day in the Kyrgyz Republic and/or in the country of correspondent banks, settlements are made on the next working day.
The Issuer on the date of payment of coupon payments and on the date of redemption ensures a sufficient volume of funds in foreign currency in the current account of the Central Treasury of the Ministry of Finance in the National Bank, through which the payment of coupon payments and the transfer of the redeemed nominal value of GKO-V will be made.
The National Bank on the basis of the payment order of the Central Treasury of the Ministry of Finance on behalf of the Issuer makes a transfer of funds for coupon payments on GKO-V and/or redemption of GKO-V on a date determined by the Issuer in accordance with the issue conditions of GKO-V. The Issuer bears responsibility for the correctness of the transfer amount, for the timely provision of the payment order for the timely transfer of funds to the direct participant, for the correctness of the banking details of the payment.
The Issuer undertakes to independently pay all direct and indirect expenses for correspondent bank transfers that may arise in operations specified in paragraphs 73 and 76 of this Regulation.

Chapter 7. Final Provisions

Risk management methods for operations with GKO-V are determined by the internal regulatory documents of auction participants.
With the agreement of the Issuer, the National Bank may open depository accounts for international organizations created by the Kyrgyz Republic jointly with other states within the framework of the Eurasian Economic Union (hereinafter - the Organization), for accounting of GKO-V acquired in the secondary market. To open a depository account in the National Bank, the Organization must conclude a Contract with the National Bank on opening a depository account for accounting of GKO-V (Appendix 5).


		Appendix 1 to the Regulation "On the procedure for placement, reverse repurchase, and settlement with state treasury bonds of the Government of the Kyrgyz Republic, denominated in foreign currency, through the National Bank of the Kyrgyz Republic"

CONTRACT No. _____
On the activity of the bank ______ in the market of state treasury bonds of the Government of the Kyrgyz Republic, denominated in foreign currency and placed through the National Bank


Bishkek		"" ______ 20

The National Bank of the Kyrgyz Republic, hereinafter referred to as the "National Bank", represented by the Deputy Chairman ____, acting on the basis of an order dated ______ 20 No. ___, on the one hand, and ______, hereinafter referred to as the "Bank", represented by the Chairman of the Board ____, acting on the basis of the Charter, on the other hand, jointly referred to as the "Parties", guided by the Regulation of the National Bank "On the procedure for placement, reverse repurchase, and settlement with state treasury bonds of the Government of the Kyrgyz Republic, denominated in foreign currency, through the National Bank of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank dated ______ 20 No. ___, (hereinafter - the Regulation), have concluded this Contract on the following:

1. Subject of the Contract

1.1. The subject of this Contract is the implementation by the Bank of activities as a direct participant in the market of state treasury bonds of the Government of the Kyrgyz Republic, denominated in foreign currency and placed through the National Bank (hereinafter - GKO-V) in accordance with the Regulation.

2. Requirements imposed on the Bank

2.1. The Bank wishing to work as a direct participant must meet at least the following criteria:

have a license from the National Bank to conduct banking operations in national currency without restrictions;
have a license from the National Bank to conduct banking operations in foreign currency without restrictions;
have a correspondent account in foreign currency;
not be in processes and/or procedures provided for by the Law of the Kyrgyz Republic "On Conservation, Liquidation and Bankruptcy of Banks" (conservation, rehabilitation, rehabilitation, voluntary or forced liquidation, restructuring and reorganization);
have documents defining the risk management policy when working with GKO-V, the procedure for maintaining depositary accounting of GKO-V, the internal control system when working with GKO-V.

2.2. By signing this Agreement, the Bank confirms its compliance with the criteria specified in paragraph 2.1 of this Agreement.

3. Rights of the Bank

The Bank has the right:

3.1. To participate directly in auctions for the placement and repurchase of GKO-V in its own name and on behalf of clients.

3.2. To carry out depositary activities for GKO-V acquired by it on behalf and on behalf of its clients.

3.3. To receive information about the parameters of upcoming and the results of conducted auctions for the placement and repurchase of GKO-V.

3.4. The amount of remuneration and the procedure for accepting applications from the Bank's clients is determined by the Bank independently.

4. Obligations of the Bank

The Bank is obliged:

4.1. To carry out activities in the GKO-V market in accordance with the regulatory legal acts of the National Bank and the legislation of the Kyrgyz Republic.

4.2. To timely and in full amount transfer funds in foreign currency to the corresponding foreign currency account of the Issuer in the National Bank to pay for the purchased amount of GKO-V according to satisfied applications for participation in the placement auction for 1 (one) working day before the issue date of GKO-V. When transferring funds in foreign currency, the direct participant must necessarily indicate the recipient of the funds (the Issuer), the account number of the Issuer in foreign currency in the National Bank, the full and correct basis and purpose of the payment. In the event that the direct participant of the auction did not credit in full and in a timely manner funds in foreign currency to the corresponding foreign currency account of the Issuer in the National Bank to pay for the purchased amount of GKO-V, then its application is canceled. In this case, the direct participant of the auction is obliged to pay the Issuer a penalty in the amount of one percent of the nominal value of the purchased GKO-V at the official exchange rate established by the National Bank on the issue date of GKO-V. Until the penalty is paid, the direct participant of the auction is not admitted to subsequent auctions.

4.3. To independently pay all direct and indirect expenses for correspondent bank transfers that may arise in operations specified in paragraph 4.2 of this Agreement.

4.4. To provide the necessary conditions for participation in auctions for the placement and repurchase of GKO-V of the Bank's clients.

4.5. To carry out depositary activities for GKO-V in accordance with the rules established by the National Bank, within the framework of a two-tier accounting system (National Bank - Main Depository; Bank - Sub-depository):

to credit GKO-V to the accounts of its depositors upon their primary placement (after the GKO-V auction);
to close the accounts of the corresponding issues of GKO-V upon the arrival of their maturity dates;
to ensure the storage and accounting of rights to GKO-V belonging to depositors;
to carry out separate accounting of GKO-V of each depositor;
to ensure proper accounting of documents that are the basis for making entries in depository accounts;
to confirm the ownership rights of the Bank's clients to GKO-V accounted for in the Bank's Sub-depository.

4.6. To provide its clients with reliable information about the GKO-V market, including information about GKO-V prices prevailing in the market, interest rates, trends and other necessary information.

4.7. To ensure the confidentiality of information relating to the GKO-V of its clients, except in cases of disclosure of information in accordance with the current legislation of the Kyrgyz Republic.

4.8. To timely provide reports in the format established by the National Bank, as well as other information related to the Bank's activities as a direct participant upon requests from the National Bank and/or the Ministry of Finance of the Kyrgyz Republic.

4.9. Within two working days after signing this Agreement, provide the National Bank with a power of attorney and a list of persons authorized to sign applications for GKO-V auctions. In the event that the powers specified in this paragraph are transferred to another person, then within two working days from the moment of transfer of such powers, provide the National Bank with a new list and power of attorney.

4.10. To carry out civil law transactions with GKO-V in accordance with the legislation of the Kyrgyz Republic, including the Regulation "On the Procedure for Placement, Repurchase and Settlement with State Treasury Bonds of the Government of the Kyrgyz Republic, Denominated in Foreign Currency, through the National Bank of the Kyrgyz Republic", approved by the resolution of the Board of the National Bank of ______ No. ___.

5. Rights of the National Bank

The National Bank has the right:

5.1. To supervise the activities of the Bank in the GKO-V market, including by conducting on-site inspections.

5.2. To act as the Main Depository of GKO-V.

5.3. To demand timely submission of established forms of reporting, as well as other information related to the Bank's activities, necessary for the National Bank and/or the Ministry of Finance of the Kyrgyz Republic.

5.4. To apply to the Bank measures established by the legislation of the Kyrgyz Republic.

6. Obligations of the National Bank

The National Bank is obliged:

6.1. To ensure accurate and complete accounting of GKO-V in circulation.

6.2. To announce and post on the website of the National Bank the parameters of GKO-V auctions.

6.3. After conducting GKO-V auctions, provide the Bank with information about the results of GKO-V auctions in accordance with the established procedure.

6.4. On the dates of maturity of GKO-V, as well as on the dates of coupon payments, based on the payment order of the Issuer and on the details specified in the order, to transfer funds in foreign currency to the correspondent account of the Bank. The Issuer is responsible for the correctness of the transfer amount, for the timely provision of the payment order for the timely transfer of funds to the Bank, for the correctness of the payment bank details.

6.5. To ensure the confidentiality of information regarding the Bank's operations with GKO-V, except in cases of disclosure of information in accordance with the current legislation of the Kyrgyz Republic.

7. Liability of the Parties and Dispute Resolution Procedure

7.1. In the event of excessive or erroneous crediting of funds by the Bank to the Issuer's account in the National Bank, the National Bank is obliged to notify and return to the Bank the erroneously credited amounts. At the same time, in the event of any direct and/or indirect expenses for correspondent bank transfers, such expenses are borne by the Bank.

7.2. For untimely or incorrect transfer by the National Bank of the amount upon maturity or payment of coupon payments on GKO-V, the National Bank pays a penalty to the Bank in the amount of 0.1% of the under-credited amount for each day of delay.

7.3. The Bank is obliged to notify and return to the National Bank the erroneously credited amounts. In the event of failure to return the erroneously credited amounts, the Bank pays a penalty to the National Bank for each calendar day of delay in the amount of 0.1% of the erroneously credited amount.

7.4. The Parties are liable for non-performance or improper performance of their obligations in accordance with the legislation of the Kyrgyz Republic.

7.5. Disputes arising in the process of performing this Agreement are subject to settlement by negotiations of the Parties, for the purpose of developing a mutually acceptable solution.

7.6. Unresolved disputes are resolved in the manner established by the legislation of the Kyrgyz Republic.

7.7. The National Bank is not liable for non-performance of obligations if this became a consequence of the non-performance of obligations by the Ministry of Finance of the Kyrgyz Republic on the GKO-V issued by it.

8. Term of Validity and Procedure for Termination of the Agreement

8.1. This Agreement enters into force from the moment of its signing and is valid for one calendar year.

8.2. If neither of the Parties no later than 30 calendar days before the expiration of the term of this Agreement has not notified in writing about its termination, the action of this Agreement is automatically extended for each subsequent calendar year.

8.3. This Agreement may be terminated at the initiative of both the National Bank and the Bank.

8.4. The National Bank has the right to terminate this Agreement unilaterally and without prior notice in the following cases:

in case of non-performance or improper performance by the Bank of its obligations under this Agreement;
if liquidation proceedings have been initiated against the Bank;
if the Bank's banking license has been suspended or revoked.

9. Other Conditions

9.1. The Bank grants the National Bank the right to make non-accountable deductions of funds from the Bank's correspondent account in the National Bank based on the results of the Bank's participation in GKO-V auctions.

9.2. The terms of this Agreement may be changed or supplemented by mutual agreement of the Parties.

9.3. In the event of amendments and additions to the Regulation or the adoption of a new edition of the Regulation, the terms of this Agreement are subject to review in order to bring the Agreement into compliance with the new norms of the Regulation.

9.4. Amendments and additions may be made to this Agreement, which are оформляемые (documented) by an additional agreement in writing, which is signed by both Parties and is an integral part of this Agreement.

9.5. This Agreement is drawn up in two copies, one copy for each of the Parties. Both copies have equal legal force.

Details of the Parties:


National Bank of the Kyrgyz Republic		Name of the Bank
720040, Bishkek, Umetalieva St. 101		(Postal code, address)
(Position)		(Position)
(Full Name)		(Full Name)
______ (signature)		______ (signature)
MP		MP


		Appendix 2 to the Regulation "On the Procedure for Placement, Repurchase and Settlement with State Treasury Bonds of the Government of the Kyrgyz Republic, Denominated in Foreign Currency, through the National Bank of the Kyrgyz Republic"

National Bank of the Kyrgyz Republic

APPLICATION for participation in the auction for the placement of GKO-V

Hereby [name of the direct participant of the auction], hereinafter referred to as the "Participant", expresses readiness to buy GKO-V registration number ______, at the auction held on [date of the auction] on the following terms:

in its own name:


Own application
Competitive application
Lot No.	Purchase Price	Quantity of GKO-V (pcs.)	Purchase Cost
1	2	3	4 = 2 * 3

on behalf of its clients(1):


Client application
Competitive application
Lot No.	Purchase Price	Quantity of GKO-V (pcs.)	Purchase Cost
1	2	3	4 = 2 * 3

Non-competitive application
Quantity of GKO-V (pcs.)

The Participant is familiar with the rules for conducting the auction and accepts all obligations arising from them.


______ (position)	______ (signature)	______ (Full Name)

Date MP.

Executor Full Name

Tel.: ______

Note:

(1) Filled in by the direct participant in the presence of a client application.


		Appendix 3 to the Regulation "On the Procedure for Placement, Repurchase and Settlement with State Treasury Bonds of the Government of the Kyrgyz Republic, Denominated in Foreign Currency, through the National Bank of the Kyrgyz Republic"

National Bank of the Kyrgyz Republic

APPLICATION for participation in the repurchase of GKO-V

Hereby [name of the direct participant of the repurchase], hereinafter referred to as the "Participant", expresses readiness to sell GKO-V registration number ______, at the repurchase held on [date of the repurchase] at a price of [XXXX] for one GKO-V on the following terms:

in its own name:


Own application
Quantity of GKO-V (pcs.)

on behalf of its clients(1):


Client application
Quantity of GKO-V (pcs.)

The Participant is familiar with the rules for conducting the repurchase of GKO-V and accepts all obligations arising from them.


______ (position)	______ (signature)	______ (Full Name)

Date MP.

Executor Full Name

Tel.: ______

Note:

(1) Filled in by the direct participant in the presence of a client application.


		Appendix 4 to the Regulation "On the Procedure for Placement, Repurchase and Settlement with State Treasury Bonds of the Government of the Kyrgyz Republic, Denominated in Foreign Currency, through the National Bank of the Kyrgyz Republic"

National Bank of the Kyrgyz Republic

RECEIPT

Hereby the National Bank of the Kyrgyz Republic confirms that as a result of the auction for the placement of GKO-V held on [date of holding] [name of the direct participant of the auction] is recognized as the owner of GKO-V of the following issues:


Registration number of the GKO-V issue	Quantity of GKO-V (pcs.)		Amount	Coupon rate %	Coupon payment conditions (payment frequency)
Own	Client	Own	Client


Head of ORRCB UDKO	______ (signature)	______ (Full Name)

Executor Full Name

Tel.: ______


		Appendix 5 to the Regulation "On the Procedure for Placement, Repurchase and Settlement with State Treasury Bonds of the Government of the Kyrgyz Republic, Denominated in Foreign Currency, through the National Bank of the Kyrgyz Republic"

AGREEMENT No. ______ about opening a depository account for accounting of state treasury bonds of the Government of the Kyrgyz Republic, denominated in foreign currency


Bishkek		"" ______ 20 g.

National Bank of the Kyrgyz Republic, hereinafter referred to as the "National Bank", in the person of the Deputy Chairman ____, acting on the basis of an order dated ______ 20 g. No. ___, on the one hand, and ______, hereinafter referred to as the "Participant", in the person of the Chairman of the Board ____, acting on the basis of the Charter, on the other hand, jointly referred to as the "Parties", guided by the Regulation of the National Bank "On the Procedure for Placement, Repurchase and Settlement with State Treasury Bonds of the Government of the Kyrgyz Republic, Denominated in Foreign Currency, through the National Bank of the Kyrgyz Republic", approved by the resolution of the Board of the National Bank No. ___ dated ______ 20 g., (hereinafter referred to as the Regulation), concluded this Agreement on the following:

1. Subject of the Agreement

1.1. The subject of this Agreement is the opening to the Participant of a depository account in the National Bank for accounting of state treasury bonds of the Government of the Kyrgyz Republic, denominated in foreign currency (hereinafter referred to as GKO-V), acquired by the Participant in the secondary GKO-V market, as well as carrying out operations on the depository account based on the Participant's instructions.

1.2. The procedure for the work of the GKO-V Depository when providing services to the Participant is determined by the regulatory legal acts of the National Bank.

2. Rights and Obligations of the Participant

The Participant has the right:

2.1. To control the movement of GKO-V acquired by it in its own name in the secondary GKO-V market, in the depository account opened in the Main Depository.

The Participant is obliged:

2.2. To carry out activities in the GKO-V market, including civil law transactions with GKO-V, in accordance with the legislation of the Kyrgyz Republic and with the regulatory legal acts of the National Bank.

2.3. To timely provide reports in the format established by the National Bank, as well as other information related to the Participant's activities in the GKO-V market upon requests from the National Bank and/or the Ministry of Finance of the Kyrgyz Republic.

3. Rights and Obligations of the National Bank

The National Bank has the right:

3.1. To demand timely submission of established forms of reporting, as well as other information related to the Participant's activities in the GKO-V market, necessary for the National Bank and/or the Ministry of Finance of the Kyrgyz Republic.

3.2. To apply to the Participant measures established by the legislation of the Kyrgyz Republic.

The National Bank is obliged:

3.3. To ensure accurate and complete accounting of GKO-V of the participant on the depository account.

3.4. To ensure the confidentiality of information regarding the Participant's operations with GKO-V, except in cases of disclosure of information in accordance with the current legislation of the Kyrgyz Republic.

4. Liability of the Parties and Dispute Resolution Procedure

4.1. The Parties are liable for non-performance or improper performance of their obligations in accordance with the legislation of the Kyrgyz Republic.

4.2. Disputes arising in the process of performing this Agreement are subject to settlement by negotiations of the Parties, for the purpose of developing a mutually acceptable solution.

4.3. Unresolved disputes are resolved in the manner established by the legislation of the Kyrgyz Republic.

4.4. The National Bank is not liable for non-performance of obligations if this became a consequence of the non-performance of obligations by the Ministry of Finance of the Kyrgyz Republic on the GKO-V issued by it.

5. Term of Validity and Procedure for Termination of the Agreement

5.1. This Agreement enters into force from the moment of its signing and is valid for one calendar year.

5.2. If neither of the Parties no later than 30 calendar days before the expiration of the term of this Agreement has not notified in writing about its termination, the action of this Agreement is automatically extended for each subsequent calendar year.

5.3. This Agreement may be terminated at the initiative of both the National Bank and the Participant.

5.4. The National Bank has the right to terminate this Agreement unilaterally and without prior notice in case of non-performance or improper performance by the Participant of its obligations under this Agreement.

6. Other Conditions

6.1. The terms of this Agreement may be changed or supplemented by mutual agreement of the Parties.

6.2. In the event of amendments and additions to the Regulation or the adoption of a new edition of the Regulation, the terms of this Agreement are subject to review in order to bring the Agreement into compliance with the new norms of the Regulation.

6.3. Amendments and additions may be made to this Agreement, which are documented by an additional agreement in writing, which is signed by both Parties and is an integral part of this Agreement.

6.4. This Agreement is drawn up in two copies, one copy for each of the Parties. Both copies have equal legal force.

Details of the Parties:


National Bank of the Kyrgyz Republic		Name of the Bank
720040, Bishkek, Umetalieva St. 101		(Postal code, address)
(Position)		(Position)
(Full Name)		(Full Name)
______ (signature)		______ (signature)
MP		MP

Lineage: No known changes