Resolution of the Board of the National Bank of the Kyrgyz Republic No. 24/5 of August 9, 2006 on Amendments and Additions to the Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic

Registered in the Ministry of Justice of the Kyrgyz Republic

August 28, 2006. Registration number 94-06

Bishkek

of August 9, 2006 No. 24/5

RESOLUTION OF THE BOARD OF THE NATIONAL BANK

OF THE KYRGYZ REPUBLIC

On Amendments and Additions to the "Rules

for Regulating the Activities of Credit Unions

in the Kyrgyz Republic"

In order to further develop the system of regulation and supervision of

credit unions, having reviewed the proposed amendments and additions to

the "Rules for Regulating the Activities of Credit Unions in the Kyrgyz Re-

public", the Board of the National Bank of the Kyrgyz Republic resolves:

1. Approve the proposed amendments and additions to the "Rules for Regulating

the Activities of Credit Unions in the Kyrgyz Republic", approved by

resolution of the Board of the NBRK of May 4, 2005 No. 14/2

(reg. number of the Ministry of Justice of the KR No. 73-05 of June 6, 2005) (attached).

2. The Department of Supervision and Licensing Methodology jointly with

the Legal Department shall, in the established manner, carry out state

registration of this resolution in the Ministry of Justice of the Kyrgyz

Republic.

3. This resolution shall enter into force from the moment of official

publication after state registration in the Ministry of Justice of the

Kyrgyz Republic.

4. The Department of Supervision of Non-Banking Institutions shall bring

this resolution to the attention of regional departments and the Representative

Office of the National Bank of the Kyrgyz Republic in the Batken Region.

5. After the publication of the registered normative legal act, the Legal

Department shall inform the Ministry of Justice of the Kyrgyz Republic

of the source of publication (name of the edition, its number and date).

6. Control over the implementation of this resolution shall be assigned to

the Deputy Chairman of the NBRK S.E. Zhanibekova.

Chairman of the Board of the National Bank

of the Kyrgyz Republic M. Alapaev

Appendix

to the resolution of the Board

of the National Bank

of the Kyrgyz Republic

of August 9, 2006 No. 24/5

AMENDMENTS AND ADDITIONS

to the Rules for Regulating the Activities of Credit

Unions in the Kyrgyz Republic

Make the following amendments and additions to the Rules for Regulating the Activities of Credit Unions in the

Kyrgyz Republic, approved by resolution of the Board of the NBRK No.

14/2 of May 4, 2005, registered by the Ministry of Justice of the Kyrgyz

Republic on June 6, 2005, registration number 73-05:

1. In sub-item 3.1.3. of item 3.1, delete the words: "except for

the standard of the maximum size of risk for one borrower (N2)".

2. At the end of sub-item 3.1.3. of item 3.1, add a new sentence

of the following content:

"By the time of submitting an application for a license for the right to

attract deposits from its members and/or by the time of receiving a loan

from OsOO 'Financial Company for Support and Development of Credit Unions in

the Kyrgyz Republic', credit unions must bring their activities

into compliance with the economic standards of the NBRK established in

sub-item 3.1.2.".

3. In item 5.1, delete the following sentence: "This standard

applies to credit unions that have debt to OsOO

'Financial Company for Support and Development of Credit Unions in the Kyrgyz

Republic'."

4. Replace the second paragraph of item 5.1 with a new paragraph of the

following content:

"When calculating the standard of the maximum size of external borrowings

of a credit union, the amount of external borrowings includes borrowings

of the credit union from financial and credit institutions licensed and reg-

ulated by the NBRK, as well as government bodies, international

financial institutions and from other external sources, оформленные (documented)

in accordance with the legislation of the KR".

5. Supplement item 5.2 with sub-item 5.2.4 of the following content:

"Credit unions that do not attract deposits from their members and

do not have debt to OsOO 'Financial Company for Support and

Development of Credit Unions in the Kyrgyz Republic' must establish

the maximum size of risk for one borrower in their credit poli- cy, which is approved by the General Meeting of members".

Sub-items 5.2.4., 5.2.5. and 5.2.6. of item 5.2 shall be considered respectively

as sub-items 5.2.5., 5.2.6. and 5.2.7.

6. In sub-item 5.2.5. of item 5.2, before the first sentence, add

a new sentence of the following content:

"A credit union is prohibited from issuing loans to members for contri- butions to the capital of the credit union".