Resolution of the Board of the National Bank of the Kyrgyz Republic No. 25/2 of May 11, 2007 on Amendments to Resolution No. 14/2 of May 4, 2005 on the New Edition of the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic

Registered in the Ministry of Justice of the Kyrgyz Republic

June 14, 2007. Registration number 56-07

Bishkek

from May 11, 2007 No. 25/2

RESOLUTION OF THE BOARD OF THE NATIONAL BANK

OF THE KYRGYZ REPUBLIC

On Amendments to the Resolution of the Board of the

National Bank of the Kyrgyz Republic "On the New

Edition of the Rules Regulating the Activities

of Credit Unions in the Kyrgyz Republic"

No. 14/2 of May 4, 2005

Having considered the proposed draft amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On the New Edition of the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic" No. 14/2 of May 4, 2005, registered in the Ministry of Justice of the Kyrgyz Republic on June 6, 2005, registration number 73-05, the Board of the National Bank of the Kyrgyz Republic resolves:

1. Approve amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On the New Edition of the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic" No. 14/2 of May 4, 2005, registered in the Ministry of Justice of the Kyrgyz Republic on June 6, 2005, registration number 73-05 (attached).

2. The Supervision and Licensing Methodology Department together 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 enters into force from the moment of official publication after state registration in the Ministry of Justice of the Kyrgyz Republic.

4. After the publication of the registered normative legal act, the Legal Department shall inform the Ministry of Justice of the Kyrgyz Republic about the source of publication (name of the edition, its number and date).

5. Control over the implementation of this resolution is entrusted to the Board Member of the NBRK S.E. Zhanibekova.

Chairman of the Board of the National

Bank of the Kyrgyz Republic M. Alapaev

Approved

by the Resolution of the Board

of the National Bank

of the Kyrgyz Republic

of May 11, 2007 No. 25/2

AMENDMENTS

to the Resolution of the Board of the National Bank

of the Kyrgyz Republic "On the New Edition of the Rules

Regulating the Activities of Credit Unions

in the Kyrgyz Republic" No. 14/2 of May 4, 2005,

registered in the Ministry of Justice

of the Kyrgyz Republic on June 6, 2005,

registration number 73-05

1. Paragraph 4.4 of the Rules Regulating the Activities of Credit Unions in the

Kyrgyz Republic shall be worded as follows:

"4.4. For credit unions holding a license to attract deposits (deposits) from credit union members, the maximum size of the deposit base must not exceed 450% of the institutional capital."

2. In the third paragraph of paragraph 5.1 of the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic, after the words "institutional capital of the credit union - IC," delete the words "coefficient - K,".

3. Paragraph 5.1.1 of the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic shall be worded as follows:

"5.1.1. For newly created credit unions, the standard for the maximum size of external borrowings (N1.1) is determined according to the table:

---

Period of operation of the credit union	1 year	2 year
Calculation of N1.1	N1.1 (<=) DC	N1.1 (<=) DC + IC
		or
		N1.1 (<=) IC x 4
		depending on
		which is greater

---

During the first year of operation of a newly created credit union, the size of external borrowings must not exceed the size of equity capital.

During the second year of operation of a newly created credit union, the size of external borrowings must not exceed the size of total capital or four times the size of institutional capital, depending on which is greater."

4. Paragraph 5.1.2 of the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic shall be worded as follows:

"5.1.2. For existing credit unions, the standard for the maximum size of external borrowings (H1.2) is determined by the formula:

H1.2 (<=) IC x 4

The value of the standard for the maximum size of external borrowings for existing credit unions (H1.2) must not exceed four times the size of institutional capital."