Resolution No. 2023-P-12/38-2-(NFKU) of the Board of the National Bank of the Kyrgyz Republic of 14 June 2023 on Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Requirements for the Formation, Publication and Provision to the National Bank of the Kyrgyz Republic of Financial Statements of Non-Bank Financial and Credit Organizations'" of 28 September 2021 No. 2021-P-33/53-9-(NFKU)

BOARD OF THE NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 14 June 2023 No. 2023-P-12/38-2-(NFKU)

On Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Requirements for the Formation, Publication and Provision to the National Bank of the Kyrgyz Republic of Financial Statements of Non-Bank Financial and Credit Organizations'" of 28 September 2021 No. 2021-P-33/53-9-(NFKU)

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 introduce amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Requirements for the Formation, Publication and Provision to the National Bank of the Kyrgyz Republic of Financial Statements of Non-Bank Financial and Credit Organizations'" of 28 September 2021 No. 2021-P-33/53-9-(NFKU) (attached).

2. The Legal Department:

• from the day of receipt of the relevant documents, within 3 (three) working days, 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 inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.

3. This resolution enters into force upon the expiry of 15 (fifteen) days from the day of official publication.

Published on the website nbkr.kg on 23 June 2023

4. The Supervision Methodology Department, after official publication, within 3 (three) working days, to bring this resolution to the attention of OJSC "Financial Company of Credit Unions", the Association of Legal Entities "Association of Microfinance Organizations", the Association of Legal Entities "National Association of Credit Unions and Cooperatives of Kyrgyzstan", microfinance organizations, credit unions licensed to attract deposits, OJSC "Guarantee Fund", housing-savings credit companies.

5. The "Secretariat of the Board" Division, within 3 (three) working days, to bring this resolution to the attention of the Non-Bank Organizations Supervision Department, regional departments and the Representative Office of the National Bank of the Kyrgyz Republic in Batken Oblast.

6. Control over the execution of this resolution shall be entrusted to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Supervision Methodology Department.

Acting Chairman	Z. Chokoev

	Appendix to the resolution of the Board of the National Bank of the Kyrgyz Republic of 14 June 2023 No. 2023-P-12/38-2-(NFKU)

Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Requirements for the Formation, Publication and Provision to the National Bank of the Kyrgyz Republic of Financial Statements of Non-Bank Financial and Credit Organizations'" of 28 September 2021 No. 2021-P-33/53-9-(NFKU)

To introduce to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Requirements for the Formation, Publication and Provision to the National Bank of the Kyrgyz Republic of Financial Statements of Non-Bank Financial and Credit Organizations'" of 28 September 2021 No. 2021-P-33/53-9-(NFKU) the following amendments:

in the title of the aforementioned resolution in the official language, the word "presentation" shall be replaced by the word "provision";

in the Regulation "On Requirements for the Formation, Publication and Provision to the National Bank of the Kyrgyz Republic of Financial Statements of Non-Bank Financial and Credit Organizations" approved by the aforementioned resolution:

• in the title of the Regulation in the official language, the word "presentation" shall be replaced by the word "provision";

• paragraph 2 shall be restated as follows:

"2. The norms of this Regulation apply to microfinance companies (hereinafter - MFC), housing-savings credit companies (hereinafter - HSCC), guarantee funds (hereinafter - GF), microcredit companies (hereinafter - MCC), microcredit agencies with the participation of state bodies or having subsidiary (dependent) legal entities engaged in credit and financial activities (hereinafter - MCA), credit unions licensed to attract deposits from their members (hereinafter - CU), specialized financial and credit organizations (hereinafter - SFCO) (hereinafter - NFCO).";

• paragraph 4 shall be restated as follows:

"4. The norms of this Regulation do not apply to NFCOs in the process of liquidation and bankruptcy.";

• in paragraph 6, after the words "(hereinafter - IFRS)", add the words "and the requirements of the legislation of the Kyrgyz Republic";

• in paragraph 12 in the official language:

in the first paragraph, the word "presentation" shall be replaced by the word "provision";

in the second paragraph, the words "presentation" shall be replaced by the words "provision";

• in paragraph 25 in the official language:

in subparagraph 1, after the words "(directly or indirectly through subsidiaries)", the punctuation mark "," shall be excluded;

in subparagraph 2, after the words "(direct or indirect through subsidiaries)", the punctuation mark "," shall be excluded;

• paragraph 31 shall be restated as follows:

"31. A parent company located in the territory of the Kyrgyz Republic is exempt from providing consolidated financial statements in accordance with this Regulation if it prepares and provides consolidated financial statements in accordance with IFRS and the requirements of the National Bank.";

• in the title of Chapter 3 in the official language, the word "presentation" shall be replaced by the word "provision";

• paragraph 37 shall be restated as follows:

"37. Publication in the mass media (hereinafter - MM) of the annual financial statements of MFC, GF, HSCC and SFCO (statement of financial position as at the end of 31 December of the reporting year, statement of comprehensive income for the period, statement of cash flows and statement of changes in equity) together with the audit report shall be carried out in the state language and, if necessary, in the official language after completion of the audit no later than 30 April of the year following the reporting year.

MCC, MCA and CU must publish their annual financial statements together with the audit report (if any) either in the MM, or on the official website, or on their information stands in all offices, branches, representative offices and structural subdivisions in the state language and, if necessary, in the official language after completion of the audit (if conducted in accordance with the requirements of the legislation of the Kyrgyz Republic) no later than 30 April of the year following the reporting year.

When publishing annual financial statements in the MM or on an information stand, MCC, MCA and CU must place the statement of financial position as at the end of 31 December of the reporting year, the statement of comprehensive income for the period, the statement of cash flows and the statement of changes in equity together with the audit report (if any), and when publishing on the official website - the annual financial statements, including all components, notes to the financial statements and the audit report (if any).

When publishing in the MM, there must be a note that the annual financial statements, notes and explanations thereto in full can be reviewed at the head office of the NFCO, its branches, representative offices and structural subdivisions located outside the location of the head office.

MFC, GF, HSCC and SFCO must place their annual financial statements (statement of financial position as at the end of 31 December of the reporting year, statement of comprehensive income for the period, statement of cash flows and statement of changes in equity) on their information stands in all offices, branches, representative offices and structural subdivisions.

The financial statements of MFC, GF, HSCC and SFCO, including all components, notes to the financial statements and the audit report, must be published on the official website (if any).

Additionally, MFC, GF, HSCC and SFCO shall provide annual financial statements/consolidated financial statements and the audit report in electronic form by 1 June of the year following the reporting year to the authorized body for publication through the Public Depository of Financial Statements, in accordance with the requirements of the legislation of the Kyrgyz Republic.";

• paragraph 38 shall be restated as follows:

"38. The annual financial statements of NFCO may also be published on the portal of a news agency.

A link to the news agency portal must be sent by e-mail to the authorized structural subdivision of the National Bank.";

• paragraph 39 shall be restated as follows:

"39. NFCO shall select the mass media for publication of the financial statement forms together with the audit report so as to ensure its wide dissemination and accessibility to users.";

• paragraph 40 shall be restated as follows:

"40. Annual financial statements must be available at the NFCO in the state and official languages (head office, branches, representative offices, structural subdivisions located outside the location of the head office) to users in full and must be provided upon their first request for review.";

• paragraph 41 shall be restated as follows:

"41. Information on the publication of financial statements must be provided to the National Bank within 5 (five) working days after publication with 1 (one) copy of the publication attached or with an indication of the link to the official website of the NFCO (news agency portal) where the financial statements were published, with a copy of the publication attached.";

• in the title of Chapter 4 in the official language, the word "presentation" shall be replaced by the word "provision";

• paragraph 43 shall be restated as follows:

"43. In addition to the publication of annual financial statements, MFC, GF, HSCC and SFCO shall publish quarterly financial statements in the MM and provide a notice of publication to the authorized structural subdivision of the National Bank.";

• in paragraph 44:

the first paragraph in the official language shall be restated as follows:

"44. Quarterly financial statements consist of:";

the third paragraph shall be declared void;

• paragraph 45 shall be restated as follows:

"45. The quarterly financial statements of MFC, GF, HSCC and SFCO must be published on the official website (if any), in the MM and on their information stands in all offices, branches, representative offices and structural subdivisions in the state language and, if necessary, in the official language no later than 30 calendar days from the end of the quarter.

When publishing in the MM, there must be a note that the quarterly financial statements in full can be reviewed at the head office, branches, representative offices and structural subdivisions located outside the location of the head office.

The MM must meet the criteria specified in paragraph 39 of this Regulation.

MCC, MCA and CU must publish quarterly financial statements on the official website (if any) or on information stands in all offices, branches, representative offices and structural subdivisions no later than 30 calendar days from the end of the quarter.";

• in paragraph 46:

the first and second paragraphs shall be restated as follows:

"46. Information on the publication of quarterly financial statements must be provided to the National Bank within 5 (five) working days after publication with 1 (one) copy of the publication attached and/or with an indication of the link to the official website (news agency portal) where the financial statements were published, with a copy of the publication attached.

The link to the official website/news agency portal must also be sent by e-mail to the authorized structural subdivision of the National Bank.";

in the third paragraph in the official language, the words "NFCO (copy)" shall be excluded;

in the third paragraph, after the words "in the state and" the word "/or" shall be excluded;

• in paragraph 48 in the official language:

in the fourth paragraph, the word "formed" shall be replaced by the word "formed";

in the sixth paragraph, after the word "property", the punctuation mark "," shall be excluded;

• in paragraph 49, after the word "Consolidated", add the word "quarterly";

• in paragraph 61 in the official language, after the words "cannot", add the word "represent";

• paragraph 69 shall be restated as follows:

"69. NFCO must determine the composition of cash and cash equivalents and disclose it in the financial statements. In addition, NFCO must ensure reconciliation of the amounts contained in the statement of cash flows with similar items presented in the statement of financial position.";

• paragraph 80 shall be restated as follows:

"80. The amounts of RPPU for assets, accrued interest on loans and financial leases of NFCO and clients, formed in accordance with the requirements of IFRS and normative legal acts of the National Bank, must be additionally disclosed in the notes to the financial statements.";

• in the title of Appendices 1 and 2 in the official language, the words "presentation" shall be replaced by the words "provision".