Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2017-P-09/32-2-(NPA) of July 19, 2017 on Amendments and Additions to the Resolution on the Regulation on the Issuance, Placement, Circulation and Redemption of NBS Notes

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of July 19, 2017 No. 2017-P-09/32-2-(NPA)

On Amendments and Additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On the Issuance, Placement, Circulation and Redemption of Notes of the National Bank of the Kyrgyz Republic" dated March 28, 2013 No. 10/6

In accordance with Articles 20 and 68 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activity", the Board of the National Bank of the Kyrgyz Republic resolves:

1. To make amendments and additions to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On the Issuance, Placement, Circulation and Redemption of Notes of the National Bank of the Kyrgyz Republic" dated March 28, 2013 No. 10/6 (attached).

2. To the Legal Department:

• 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 Regulatory Legal Acts of the Kyrgyz Republic.

3. This resolution enters into force after the expiration of 15 days from the date of its official publication.

4. To the Monetary Operations Department to bring this resolution to the attention of commercial banks, institutional investors, and relevant structural subdivisions of the National Bank.

5. To entrust the control over the execution of this resolution to the Deputy Chairman of the National Bank of the Kyrgyz Republic Zhenish N.

Chairman of the Board
National Bank of the
Kyrgyz Republic	T. Abdygulov

		Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 19, 2017 No. 2017-P-09/32-2-(NPA)

AMENDMENTS AND ADDITIONS in the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On the Issuance, Placement, Circulation and Redemption of Notes of the National Bank of the Kyrgyz Republic" dated March 28, 2013 No. 10/6

To make the following amendments and additions to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On the Issuance, Placement, Circulation and Redemption of Notes of the National Bank of the Kyrgyz Republic" dated March 28, 2013 No. 10/6:

in the Regulation "On the Issuance, Placement, Circulation and Redemption of Notes of the National Bank of the Kyrgyz Republic", approved by the aforementioned resolution:

• paragraph 7 is to be worded as follows:

"Auction is a form of trading in National Bank notes.";

• paragraph 11, after the words "information, including the date of the auction," is to be supplemented with the words "method of conducting the auction,";

• the first sentence of paragraph 15 is to be worded as follows:

"Notes of the National Bank are discount securities with terms of circulation from 7 to 364 days.";

• the first sentence of paragraph 17 is to be worded as follows:

"The Monetary and Credit Committee of the National Bank (hereinafter referred to as the MCCR) makes a decision on the issuance of National Bank notes and establishes the method, volume, term, and date of the auction, as well as makes a decision on the additional placement of National Bank notes.";

• paragraph 33 is to be worded as follows:

"33. By decision of the MCCR, auctions may be conducted by one of the following methods:

• multiple-price auction, in which satisfaction of applications starts from the highest discounted prices and ends at the cut-off price on terms acceptable to the National Bank. In this case, if several applications are submitted at the cut-off price, the distribution of National Bank notes among these applications is carried out on a proportional basis;

• fixed-yield auction. When conducting an auction with a fixed yield, all applications at the yield established by the MCCR are satisfied. In the event that the total volume of applications exceeds the volume of National Bank notes offered at the auction, satisfaction of applications is carried out on a proportional basis.";

• the second paragraph of paragraph 38 is to be worded as follows:

"- number of applications - no more than 3;";

• the Regulation is to be supplemented with paragraphs 41-1, 41-2, 41-3 of the following content:

"41-1. In the event of the impossibility of conducting an auction in the ATS (in case of technical failures in the ATS and/or other reasons), the National Bank notifies direct participants of the impossibility of conducting an auction in the ATS. In this case, the auction for the placement/additional placement of National Bank notes is conducted using EXCEL software based on paper applications signed by the head of the direct participant and certified by a seal (Appendix 3 to this Regulation).

41-2. Paper applications, sealed in an envelope, are submitted to the National Bank by 12:00 on the day of the auction. The application must be dropped into a box labeled: "For applications for National Bank note auctions", located in office 117 of the National Bank on the first floor of the building located at: Bishkek, Chuy Avenue, 168. The application must be registered in the application registration log.

41-3. The transmission of auction results (Appendix 4 to this Regulation) to direct participants of the auction is carried out on paper through the National Bank's mailroom with prior sending via facsimile communication.";

• the Regulation is to be supplemented with appendices 3 and 4 of the following content:

		"Appendix 3 to the Regulation "On the Issuance, Placement, Circulation and Redemption of Notes of the National Bank of the Kyrgyz Republic", approved by the resolution of the Board of the National Bank dated March 28, 2013 No. 10/6

APPLICATION for participation in the National Bank note auction

Hereby, [name of the direct participant of the auction], hereinafter referred to as the "Participant", expresses readiness to buy National Bank notes registration number ______________, at the auction held on [date of the auction] on the following terms:

on its own behalf:

Own Application
Competitive Application
Lot No.	Purchase Price	Number of National Bank Notes (pcs.)	Purchase Cost
1	2	3	4=2*3

on behalf of its clients:

Competitive Application
Lot No.	Purchase Price	Number of National Bank Notes (pcs.)	Purchase Cost
1	2	3	4=2*3

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

________________________________	______________	_________________________	____________________
(position)	(signature)	(Full Name)	Date

		"Appendix 4 to the Regulation "On the Issuance, Placement, Circulation and Redemption of Notes of the National Bank of the Kyrgyz Republic", approved by the resolution of the Board of the National Bank dated March 28, 2013 No. 10/6
		_____________________________________
		(name of the participant)

NOTIFICATION

Hereby, the National Bank of the Kyrgyz Republic notifies that, as a result of the auction for the sale of National Bank notes held on "_" _________________ 20 y., Your application was satisfied in the following volume:

Registration Number	Total
Number of National Bank Notes (pcs.)	Amount

RESULTS OF THE AUCTION OF NOTES OF THE NATIONAL BANK

from "_" _____________________ 20 y.

Reg. No.	Announced Volume	Demand Volume	Sales Volume	Prices			Yield (%)	No. of Participants
max.	avg.	min.

Head of the Monetary Operations Department	___________________	________________________________
	(signature)	(Full Name)".