Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2021-P-12/25-3-(NPA) of May 19, 2021 on Amendments to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

RESOLUTION OF THE BOARD OF THE NATIONAL BANK OF THE KYRGYZ REPUBLIC

of May 19, 2021 No. 2021-P-12/25-3-(NPA)

On Amendments to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

(In the edition of the Resolution of the Board of the National Bank of the KR of September 28, 2022 No. 2022-P-12/60-2)

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. Make amendments to the following Resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

• On Approval of the Regulation "On Asset Classification and Corresponding Provisions for Potential Losses and Losses" of July 21, 2004 No. 18/3;

- (paragraph lost force in accordance with the Resolution of the Board of the National Bank of the KR of September 28, 2022 No. 2022-P-12/60-2)

2. This Resolution enters into force from the date of official publication.

3. 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.

4. The Department of Supervision and Licensing Methodology shall bring this Resolution to the attention of the Non-Commercial Organization "Union of Banks of Kyrgyzstan," commercial banks, the State Development Bank of the Kyrgyz Republic, the Non-Commercial Organization "Association of Microfinance Organizations," microfinance companies attracting time deposits, JSC "Financial Company of Credit Unions," JSC "Guarantee Fund," corresponding structural subdivisions, regional departments, and the branch of the National Bank in the Batken Region.

5. Control over the execution of this Resolution is entrusted to the Board Member overseeing the Department of Supervision and Licensing Methodology.

Chairman	T. Abdygulov

AMENDMENTS in certain regulatory legal acts of the National Bank of the Kyrgyz Republic

(In the edition of the Resolution of the Board of the National Bank of the KR of September 28, 2022 No. 2022-P-12/60-2)

1. Make the following amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Asset Classification and Corresponding Provisions for Potential Losses and Losses" of July 21, 2004 No. 18/3:

in the Regulation "On Asset Classification and Corresponding Provisions for Potential Losses and Losses," approved by the aforementioned Resolution:

• paragraph 4.1.2. is worded as follows:

"4.1.2. A Bank may classify part of an asset secured by a guarantee of a guarantee fund licensed and regulated in accordance with the legislation of the Kyrgyz Republic as a "normal asset," provided that all of the following conditions are met simultaneously:

• more than 50% of the guarantee fund's assets are risk-free assets on the day the guarantee is issued;

• the volume of assets secured by a guarantee of a guarantee fund must not exceed the sum of the guarantee fund's high-liquidity assets by more than two times.

For the purposes of this paragraph, "risk-free assets" shall mean securities of the Government of the Kyrgyz Republic and the National Bank, as well as time deposits placed in banks meeting the following conditions:

• presence of a significant share of state participation and/or share of participation by state authorities of the Kyrgyz Republic with a special status;
• absence of restrictions on the list of permitted banking operations in national and/or foreign currencies;
• compliance with economic indicators and requirements;
• absence of introduced special regimes."

2. (Lost force in accordance with the Resolution of the Board of the National Bank of the KR of September 28, 2022 No. 2022-P-12/60-2)