NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of August 15, 2018 No. 2018-P-09/33-2-(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 Procedure for Conducting Credit Auctions by the National Bank of the Kyrgyz Republic for Refinancing and Liquidity Maintenance' dated November 27, 2013 No. 45/13"

In accordance with Articles 20, 53, 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. 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 Procedure for Conducting Credit Auctions by the National Bank of the Kyrgyz Republic for Refinancing and Liquidity Maintenance' dated November 27, 2013 No. 45/13" (attached).

2. The Legal Department:

• publish this Resolution on the official website of the National Bank of the Kyrgyz Republic;

• after official publication, 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 upon the expiration of fifteen days from the date of official publication.

4. The Monetary Operations Department shall bring this Resolution to the attention of commercial banks, corresponding structural subdivisions of the National Bank of the Kyrgyz Republic, regional departments, and the branch of the National Bank of the Kyrgyz Republic in the Batken region.

5. Control over the execution of this Resolution is entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic N. Zhenisha.

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

		Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated August 15, 2018 No. 2018-P-09/33-2-(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 Procedure for Conducting Credit Auctions by the National Bank of the Kyrgyz Republic for Refinancing and Liquidity Maintenance' dated November 27, 2013 No. 45/13"

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 Procedure for Conducting Credit Auctions by the National Bank of the Kyrgyz Republic for Refinancing and Liquidity Maintenance' dated November 27, 2013 No. 45/13":

in the Regulation "On the Procedure for Conducting Credit Auctions by the National Bank of the Kyrgyz Republic for Refinancing and Liquidity Maintenance," approved by the aforementioned Resolution:

• throughout the text of the Regulation, replace the words "website" with "official website" in the appropriate cases;

• rephrase the first sentence of subparagraph 3 of paragraph 41 as follows:

"3) Claims under a portfolio of loans corresponding to certain characteristics, in the manner provided for by the Resolution of the Board of the National Bank 'Minimum Requirements for Forming a Loan Portfolio Accepted as Collateral.'";

• rephrase paragraph 43 as follows:

"43. Banks have the right to replace the collateral specified in the Pledge Agreement to the Credit Agreement with equivalent collateral, taking into account the application of corresponding coefficients, no earlier than 3 (three) months after receiving credit resources.";

• supplement paragraph 51-1 with a paragraph:

"Method IV - Auction at a fixed rate with co-financing. When conducting an auction at a fixed interest rate with co-financing, all applications at the rate established by the Monetary Policy Committee are satisfied until the established volume of credit resources for this auction is fully exhausted. In case the total volume of applications exceeds the volume of offered credit resources at the auction, applications are satisfied on a proportional basis, rounded to the thousandth place. In addition to the credit funds of the National Bank, the Bank undertakes to provide credit resources in national currency from its own funds on terms determined by the Monetary Policy Committee (including the maximum nominal interest rate for the Bank's final borrowers, industry focus, and proportion of co-financing from the Bank's own funds) for the corresponding auction. The Bank's credit resources from its own funds must be issued within the timeframes established in paragraph 68 of this Regulation.";

• rephrase paragraph 2.4 of the Credit Agreement (Appendix 4 to the General Agreement on Credit Auction) as follows:

"2.4. The credit issued by the National Bank to the Bank under this Credit Agreement is aimed at refinancing/liquidity maintenance (indicate the correct one), according to the parameters of the credit auction (Appendix 4 to this Credit Agreement).";

• rephrase Appendix 3 to the Credit Agreement (Appendix 4 to the General Agreement on Credit Auction) as follows:

		"Appendix 3 to the Credit Agreement dated _______________ 20__ No. ______

Monthly by the 5th of the following month

Form 2. Report on the Status of the Loan Portfolio Issued from the Funds of the National Bank of the Kyrgyz Republic within Credit Auctions

date

bank

in soms/percent

Auction Code	Outstanding loan balance at the beginning of the period	Outstanding loan balance at the end of the period	Volume of repayments by the Bank's borrowers	Volume of new loans issued by the Bank	Bank's debt to the NBKR at the end of the period	NBKR repayment amount
1	3	4	5 (3-4+6)	6	7	8 (7-3-6)
AK1
…
AKn
Total

Full Name of the Bank Head

signature

Seal.";

• supplement the Credit Agreement (Appendix 4 to the General Agreement on Credit Auction) with Appendix 4 of the following content:

		"Appendix 4 to the Credit Agreement dated _______________ 20__ No. ______

Parameters of Credit Auction AK()
Auction Code	AK()
Volume of Credit Resources (million soms)
Auction Method
Target Purpose
Regional Direction
Minimum Interest Rate (%)
Minimum Application Volume (million soms)
Maximum Application Volume (million soms)
Maximum Nominal Rates for Final Borrowers of Commercial Banks
Loan Collateral
Maximum Loan Collateral in the Form of Claims under a Loan Portfolio

";

• rephrase subparagraph 6 of paragraph 2.1 of the Pledge Agreement (Appendix 7 to the General Agreement on Credit Auction) as follows:

"6) loans, the claims under which are the subject of the pledge under this Agreement, correspond to the characteristics provided for by the Resolution of the Board of the National Bank 'Minimum Requirements for Forming a Loan Portfolio Accepted as Collateral.'".