Resolution of the Board of the National Bank of the Kyrgyz Republic of 22 January 2025

No. 2025-П-12/2-3-(НФКУ)

On Amending

Certain Regulatory Legal Acts

of the National Bank of the Kyrgyz Republic

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 amend the following resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

  • "On the 'Rules for Regulating the Activities of Microfinance Organizations in the Territory of the Kyrgyz Republic'" of 19 February 2003 No. 4/2;

  • "On the Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic" of 4 May 2005 No. 14/2;

  • "On the Regulation 'On the Periodic Regulatory Report of a Credit Union'" of 16 January 2008 No. 3/3;

  • "On Approving the Regulation 'On the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency' and the Regulation 'On the Periodic Regulatory Report of a Microfinance Company'" of 27 May 2009 No. 25/3;

  • "On Approving the Regulation on Minimum Requirements for Credit Risk Management in Microfinance Organizations Not Attracting Deposits" of 25 September 2013 No. 35/14;

  • "On Approving the 'Instruction on the Procedure for Complying with Open Currency Position Limits by Microfinance Companies'" of 30 May 2014 No. 24/8;

  • "On Approving the 'Instruction on the Procedure for Complying with Open Currency Position Limits by Credit Unions'" of 30 May 2014 No. 24/9;

  • "On Approving the Rules for Regulating the Activities of Credit Bureaus in the Territory of the Kyrgyz Republic" of 28 September 2016 No. 40/5;

  • "On Approving the Regulation 'On the Criteria for the Systemic Nature of Commercial Banks and Non-Bank Financial and Credit Organizations'" of 8 June 2017 No. 2017-П-12/23-9-(НПА);

  • "On Approving the Regulation 'On the Procedure for Conducting Certain Banking Operations by Banks of the Kyrgyz Republic in the Event of the Introduction of a Temporary Administration Regime or the Commencement of Liquidation Proceedings'" of 15 June 2017

  • No. 2017-П-12/25-9-(НПА);

  • "On Approving the Regulation 'On Minimum Requirements for the Organization of Internal Control in Commercial Banks for the Purpose of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds', the Regulation 'On the Procedure for Conducting Exchange Operations with Cash Foreign Currency in the Kyrgyz Republic' and on Amending and Supplementing Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic on Issues of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds" of 14 August 2019 No. 2019-П-12/42-1-(НПА);

  • "On Approving the Rules for Regulating the Activities of Housing Savings Credit Companies" of 1 November 2019 No. 2019-П-33/55-2-(НФКУ);

  • "On Approving the Regulation 'On Minimum Requirements for the Pricing Policy of Banking, Payment Services and Services Provided by Microfinance Organizations, and for the Conduct of Marketing Activities'" of 29 December 2021 No. 2021-П-12/75-1-(БС);

  • "On Approving the Instruction 'On Conducting Inspectoral Audits of the Activities of Non-Bank Financial and Credit Organizations and Other Legal Entities Supervised by the National Bank of the Kyrgyz Republic'" of 17 August 2022

  • No. 2022-П-33/52-2-(НФКУ).

• 2. To recognize as no longer in force:

  • 1) the resolution of the National Bank of the Kyrgyz Republic "On Approving the Regulation 'On the Credit Register'" of 11 July 2007 No. 34/3;

  • 2) paragraph 4 of the Appendix to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Amending and Supplementing Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic" of 12 December 2012 No. 48/10.

• 3. To 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 Regulatory Legal Acts of the Kyrgyz Republic.

• 4. This resolution enters into force upon the expiration of 15 (fifteen) days from the day of official publication.

• 5. To the Supervision Methodology Department, within 3 (three) working days from the day of official publication of this resolution, to bring it to the attention of the Association of Legal Entities "Association of Microfinance Organizations", the Association of Legal Entities "National Association of Credit Unions and Cooperatives of Kyrgyzstan", OJSC "Financial Company of Credit Unions", microfinance organizations, credit unions, commercial banks, the Association of Legal Entities "Union of Banks of Kyrgyzstan", the Association of Legal Entities "Association of Exchange Bureaus 'Alliance'" and exchange bureaus.

• 6. To the "Secretariat of the Board" Division, within 3 (three) working days from the day of adoption of this resolution, to bring it to the attention of structural subdivisions, regional departments and the Representative Office of the National Bank of the Kyrgyz Republic in Batken Oblast.

• 7. To entrust control over the execution of this resolution to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Supervision Methodology Department.

Chairman M. Turgunbaev

Appendix
to the resolution of the Board of the National Bank of the Kyrgyz Republic

of 22 January 2025

No. 2025-П-12/2-3-(НФКУ)

Amendments

to Certain Regulatory Legal Acts

of the National Bank of the Kyrgyz Republic

• 1. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On the 'Rules for Regulating the Activities of Microfinance Organizations in the Territory of the Kyrgyz Republic'" of 19 February 2003 No. 4/2 the following amendments:

in the "Rules for Regulating the Activities of Microfinance Organizations in the Territory of the Kyrgyz Republic" approved by the above-mentioned resolution:

• 1) to restate subparagraph 4 of paragraph 4.1 as follows:

«4) carry out other banking operations and transactions defined by the legislation of the Kyrgyz Republic, except for operations and transactions provided for by the Law of the Kyrgyz Republic «On Microfinance Organizations in the Kyrgyz Republic»;»;

• 2) in paragraph 7.1, the words «, with the exception of financial leasing operations» shall be deleted;

• 3) in paragraph 7.6, the abbreviation «ФКУ» shall be replaced by the abbreviation «ФКО».

• 2. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic «On the Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic» dated 4 May 2005 No. 14/2:

in the Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic, approved by the above-mentioned resolution:

• 1) in paragraph 5.3.3:

  • in the second paragraph, the word «учреждений» shall be replaced by the word «организаций»;

  • in the fifth paragraph, the words «учреждений, лицензируемых Национальным банком» shall be replaced by the words «организаций, поднадзорных Национальному банку».

• 3. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic «On the Regulation «On the Periodic Regulatory Report of a Credit Union» dated 16 January 2008 No. 3/3:

in the Regulation «On the Periodic Regulatory Report of a Credit Union», approved by the above-mentioned resolution:

• 1) in Appendix 2:

  • in the title page, the words «Отчитывающееся учреждение» shall be replaced by the words «Отчитывающаяся организация»;

  • in lines 15.2 and 15.3 of section 1 «Активы», the word «учреждения» shall be replaced by the word «организации»;

  • in lines 4, 4.4 and 7.5 of section 1-2 «Обязательства и капитал», the word «учреждений» shall be replaced by the word «организаций»;

  • in line 3 of section 2 «Отчет о доходах и расходах», the words «фин учреждениях» shall be replaced by the words «финансово-кредитных организациях»;

  • in line 7 of section 2 «Отчет о доходах и расходах», the word «учреждений» shall be replaced by the word «организаций»;

  • in section 3 E «Информация по привлеченным средствам», the word «учреждений» shall be replaced by the word «организаций»;

  • in line 1 of section 5 B «Информация о параллельных кредитах», the abbreviation «ФКУ» shall be replaced by the abbreviation «ФКО»;

  • section 8 «Информация о соблюдении экономических нормативов кредитного союза» shall be set out in the following wording:

• «Section 8. Information on compliance with the economic ratios of a credit union

No.

Name of the ratio and limits

Formula and calculation of the ratio, limits

Established value of the ratio, limits

Period of validity of the CU

Actual value of the ratio, limits

Deviation

1

2

3

4

5

6

7

1

Ratio of the maximum amount of external borrowings of a credit union (H1)

Н1<=СК4

2

Ratio of the maximum amount of risk per one borrower (H2)

H2 = MK / SK x 100 (<=) 20%

20%

3

Ratio of the maximum amount of investments in the capital of financial and credit organizations (Н3)

Н3 = СИ / СК х 100 ≤ 15%

15%

4

Ratio of the maximum amount of investments in fixed assets (H4)

H4 = OS / SK x 100 (<=) 20%

20%

5

Liquidity ratio (H5-1)

H5-1 = LA / OB x 100 (>=) 2%

2%

6

Liquidity ratio (H5-2)

H5-2 = (LA - COB) / (D + SP) x 100 (>=) 15%

15%

7

Institutional capital adequacy ratio (H6-1)

H6-1 = IK / SA x 100 (>=) 10%

8

Total capital adequacy ratio (H6-2)

Н6-2 = СК / СА x 100 (>=) 15%

9

Limit on the maximum size of the deposit base

<=450%ИК

450%

».

• 4. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On periodic regulatory reporting of a microcredit company/microcredit agency" and the Regulation "On periodic regulatory reporting of a microfinance company" dated 27 May 2009 No. 25/3:

  • 1) in the Regulation "On periodic regulatory reporting of a microfinance company" approved by the above-mentioned resolution:

    • a) in line 15 of the table "Composition of periodic regulatory reporting of a microfinance company" of Appendix 1, the words "financial institution (company)" shall be replaced with the abbreviation "MFC";

    • b) in Appendix 2 in the quarterly report:

      • in the title page, the words "Reporting institution" shall be replaced with the words "Reporting organization";

      • in lines 3 and 4 of section 1 "Regulatory report on financial condition", the words "financial institutions" shall be replaced with the words "financial and credit organizations";

      • in line "a" of paragraph 1 of section 7 "Changes in RPPU. B. Information on assets and off-balance sheet liabilities written off at the expense of RPPU and returned" the word "institutions" shall be replaced with the word "organizations";

    • in the title of section 11 "Information on client loans Information on personnel of the financial institution (company)" the words "financial institution (company)" shall be replaced with the abbreviation "MFC";

  • c) in Appendix 2 in the monthly report:

    • in the title page, the words "Reporting institution" shall be replaced with the words "Reporting organization";

    • in lines 3 and 4 of section 1 "Regulatory report on financial condition", the words "financial institutions" shall be replaced with the words "financial and credit organizations";

    • in line "a" of paragraph 1 of section 7 "Changes in RPPU. B. Information on assets and off-balance sheet liabilities written off at the expense of RPPU and returned" the word "institutions" shall be replaced with the word "organizations";

    • in the title of section 11 "Information on client loans Information on personnel of the financial institution (company)" the words "financial institution (company)" shall be replaced with the abbreviation "MFC".

  • 2) in the Regulation "On periodic regulatory reporting of a microcredit company/microcredit agency" approved by the above-mentioned resolution:

  • 1) in Appendix 2:

    • in the title page, the words "Reporting institution" shall be replaced with the words "Reporting organization";

    • in the article "Liabilities" of section 3 I "Analysis of sensitivity of assets and liabilities to changes in interest rates (GAP analysis)" the abbreviation "FKI" shall be replaced with the abbreviation "FKO".

• 5. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation on minimum requirements for credit risk management in microfinance organizations not attracting deposits" dated 25 September 2013 No. 35/14:

  • in the Regulation on minimum requirements for credit risk management in microfinance organizations not attracting deposits, approved by the above-mentioned resolution:

    • 1) in subparagraph 2 of paragraph 22:

      • the second paragraph shall be restated as follows:

"- on the terms of granting loans, including information on the full cost of the loan product, in the state language and, at the client's request, in the official language;";

      - the third paragraph shall be restated as follows:

"- on the terms of the loan agreement, including the liability and obligations of the borrower, including for providing inaccurate information about their financial condition; as well as on the risks associated with obtaining a loan and violations of the terms of the loan agreement, the provision of collateral, and liability associated with giving a guarantee;";

      - shall be supplemented with a paragraph as follows:

"Refusal to provide comprehensive information on the terms and cost of services provided is not allowed. The form of information must be unified and systematized to ensure the possibility of comparing loan products of different creditors.";

    - 2) paragraph 27 after the first paragraph shall be supplemented with a paragraph as follows:

"- ensure full disclosure to clients (potential borrowers) of comprehensive information on the terms of granting loans, including information on the full cost of the service, in the state language and, at the client's request, in the official language;";

    - 3) in paragraph 29:

      - in the first paragraph, the words "if necessary" shall be replaced with the words "at the client's request –";

      - the first sentence of the fifth paragraph shall be restated as follows:

"The text of the loan agreement must be printed in a font of the same size, presented as clearly as possible and accessible for perception and understanding by clients.";

      - shall be supplemented with a paragraph as follows:

"Disputes arising in the process of performance of the agreement, if they have not been resolved by agreement of the parties, shall be resolved in the manner prescribed by the legislation of the Kyrgyz Republic, including within the framework of pre-trial dispute settlement.";

    - 4) in Appendix 1:

      - paragraph 6 shall be restated as follows:

"6. Loan agreement in the state language and, at the client's request, in the official language, appendices thereto, as well as additionally concluded agreements with the client during restructuring or prolongation, assignment of rights of claim.";

      - paragraph 14 shall be restated as follows:

"14. Pledge agreement/Guarantee agreement in the state language and, if available, in the official language.".

• 6. To introduce the following amendment to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the "Instruction on the procedure for compliance with limits of open currency positions by microfinance companies" dated 30 May 2014 No. 24/8:

  • in the "Instruction on the procedure for compliance with limits of open currency positions by microfinance companies" approved by the above-mentioned resolution:

    • in Appendix 1, the word "institutions" shall be replaced with the abbreviation "MFC".

• 7. To introduce the following amendment to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the "Instruction on the procedure for compliance with limits of open currency positions by credit unions" dated 30 May 2014 No. 24/9:

  • in the «Instruction on the procedure for complying with the limits of open currency positions by credit unions», approved by the above-mentioned resolution:

    • in the Appendix, replace the words «institution numbers» with the words «CS number».

• 8. In the «On approval of the Rules for regulating the activities of credit bureaus on the territory of the Kyrgyz Republic» dated 28 September 2016 No. 40/5, the following amendments:

  • in the Rules for regulating the activities of credit bureaus on the territory of the Kyrgyz Republic, approved by the above-mentioned resolution:

    • 1) paragraph 3:

      • after the fifth paragraph, supplement with a paragraph of the following content:

«credit transaction - a loan agreement, borrowing, leasing, factoring and other agreements providing for the provision of money and other property as a loan;»;

      - supplement with a paragraph of the following content:

«For the purposes of these Rules, under credit, in addition to credit, may also be understood, among other things, borrowing, leasing, factoring and other operations providing for the provision of money and other property as a loan.»;

    - 2) supplement paragraph 29 with paragraphs of the following content:

«Credit information provided by a credit information provider (legal entity) which was subsequently liquidated shall be stored for five years from the day of the last change of the information contained in the credit history. Information under a loan agreement submitted by a pawnshop shall be stored for one year.»;

    - 3) supplement paragraph 35 after the first paragraph with a paragraph of the following content:

«A credit bureau shall not have the right to receive from a pawnshop any information under a loan agreement and about the borrower, except for information under a loan agreement in which the loan amount exceeds the amount determined by the Cabinet of Ministers of the Kyrgyz Republic.»;

    - 4) restate the eighth paragraph of paragraph 38 as follows:

«The credit history shall not include:

      - information on the obligations of a credit information subject to pay a sum of money, from the date of fulfillment of which more than five years have passed for negative credit information, seven years for positive credit information;

      - credit information provided by a credit information provider (legal entity) which was subsequently liquidated, upon the expiration of five years from the day of the last change of the information contained in the credit history;

      - information under a loan agreement upon the expiration of one year from the date of its submission by a pawnshop.

In addition, information on non-fulfillment of contractual obligations (overdue debt) exceeding ninety calendar days and (or) other mandatory payments as a consequence of an emergency situation and (or) a state of emergency shall not be included in negative credit information, provided that the credit information subject submits an application in which the circumstances related to the introduction of the emergency situation and (or) state of emergency which affected the proper fulfillment by the credit information subject of its obligations must be specified.»;

    - 5) restate the second paragraph of paragraph 60 as follows:

«The credit bureau shall annually publish in the mass media an annual report on its activities in the state language and, if necessary, in the official language, which includes the main analytical data and financial statements.»;

    - 6) restate the name of the report in chapter 9 as follows: «Periodic regulatory reporting of a credit bureau».

• 9. In the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Regulation «On criteria for the systemic nature of commercial banks and non-bank financial and credit organizations» dated 8 June 2017 No. 2017-P-12/23-9-(NPA), the following amendment:

  • in the Regulation «On criteria for the systemic nature of commercial banks and non-bank financial and credit organizations», approved by the above-mentioned resolution:

    • in subparagraph 2 of paragraph 14:

      • 1) in the text in the official language, replace the word «institutions» with the word «organizations»;

      • 2) in the text in the state language, delete the word «башка».

• 10. In the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Regulation «On the procedure for conducting certain banking operations by banks of the Kyrgyz Republic in the event of the introduction of a Temporary administration regime or the commencement of liquidation procedures» dated 15 June 2017 No. 2017-P-12/25-9-(NPA), the following amendment:

  • in the Regulation «On the procedure for conducting certain banking operations by banks of the Kyrgyz Republic in the event of the introduction of a Temporary administration regime or the commencement of liquidation procedures», approved by the above-mentioned resolution:

    • restate the thirtieth paragraph of paragraph 7 as follows:

«participants of the payment system (hereinafter - Participant) are financial and credit organizations, specialized financial and credit organizations, payment system operators and payment organizations and their agents providing payment services to the population on the territory of the Kyrgyz Republic on the basis of concluded agreements.».

• 11. In the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Regulation «On minimum requirements for the organization of internal control in commercial banks for the purposes of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds», the Regulation «On the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic» and on introducing amendments and additions to certain normative legal acts of the National Bank of the Kyrgyz Republic on issues of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds» dated 14 August 2019 No. 2019-P-12/42-1-(NPA), the following amendments:

  • in the Regulation «On the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic», approved by the above-mentioned resolution:

    • 1) in paragraph 3:

      • in the text in the official language, restate the sixth and seventh paragraphs as follows:

«Microfinance company – a specialized financial-credit organization established in the form of a joint-stock company, which has obtained a license from the National Bank and carries out microcrediting of legal entities and individuals, and other types of operations, including attracting time deposits from individuals and legal entities, as provided by legislation. Microcredit company - a specialized financial-credit organization established in any organizational-legal form of a commercial organization, which has obtained a certificate from the National Bank and carries out microcrediting of individuals and legal entities and other types of operations provided by legislation.»;

      - in the text in the official language, in the ninth paragraph, replace the word «учреждениями» with the word «организациями»;

    - 2) in paragraph 19, replace the word «учреждений» with the word «организаций»;

    - 3) in paragraph 50:

      - in the text in the official language, replace the words «учреждениями» with the words «организациями»;

      - in the text in the state language, replace the word «мекемесинин» with the word «уюмдарынын», replace the words «мекемеси» with the words «уюму».

• 12. To introduce the following change to the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Rules for regulating the activities of housing-savings credit companies» dated 1 November 2019 No. 2019-П-33/55-2-(НФКУ):

  • in the Rules for regulating the activities of housing-savings credit companies approved by the above-mentioned resolution:

    • subparagraph 9 of paragraph 40 shall be set out in the following wording:

«9) the client's right to early repayment of the loan in full or in part at any time without charging any commissions, penalties and other payments in accordance with the requirements of the legislation of the Kyrgyz Republic;».

• 13. To introduce the following change to the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Regulation «On minimum requirements for the pricing policy of banking, payment services and services provided by microfinance organizations, and for the implementation of marketing activities» dated 29 December 2021 No. 2021-П-12/75-1-(БС):

  • in the Regulation «On minimum requirements for the pricing policy of banking, payment services and services provided by microfinance organizations, and for the implementation of marketing activities» approved by the above-mentioned resolution:

    • in subparagraph 6 of paragraph 7, replace the word «сборов» with the word «вознаграждений».

• 14. To introduce the following changes to the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Instruction «On conducting inspections of the activities of non-bank financial-credit organizations and other legal entities supervised by the National Bank of the Kyrgyz Republic» dated 17 August 2022 No. 2022-П-33/52-2-(НФКУ):

  • in the Instruction «On conducting inspections of the activities of non-bank financial-credit organizations and other legal entities supervised by the National Bank of the Kyrgyz Republic» approved by the above-mentioned resolution:

    • 1) the second, third, fourth and fifth paragraphs of paragraph 4 shall be set out in the following wording:

«a) Microfinance organization (hereinafter – MFO) – is a specialized financial-credit or credit organization established as a legal entity for the purpose of providing microfinance services for individuals and legal entities, including in accordance with Islamic principles of banking and financing;

b) Microfinance company (hereinafter – MFK) – is a specialized financial-credit organization established in the form of a joint-stock company, which has obtained a license from the National Bank and carries out microcrediting of legal entities and individuals and other types of operations, including attracting time deposits from individuals and legal entities, provided by the Law «On microfinance organizations in the Kyrgyz Republic»;

c) Microcredit company (hereinafter – MCC) – is a specialized financial-credit organization established in any organizational-legal form of a commercial organization, which has obtained a certificate from the National Bank and carries out microcrediting of individuals and legal entities and other types of operations provided by the Law «On microfinance organizations in the Kyrgyz Republic»;

d) Microcredit agency (hereinafter – MCA) – is a specialized credit organization established in the form of a non-commercial organization, with the exceptions established by the Law «On microfinance organizations in the Kyrgyz Republic», which has obtained a certificate from the National Bank and carries out microcrediting of individuals and legal entities in accordance with the statutory goals of the organization;»;

    - 2) in the text in the state language, in the second paragraph of paragraph 28, replace the words «финансы мекемесинин» with the words «финансы уюмунун»;

    - 3) in the text in the state language, in Appendices 1 and 4, replace the word «мекемеси» with the word «уюму».