Resolution of the Board of the National Bank of the Kyrgyz Republic No. 29/5 of July 11, 2012 on Amendments to Regulatory Acts Governing Microfinance Organizations

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of July 11, 2012 No. 29/5

On Amendments and Additions to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic Governing the Activities of Microfinance Organizations

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 9, 2015 No. 76/9)

In order to ensure the stable and sustainable operation of microfinance organizations and to maintain their capital base at an appropriate level to cover credit risks, to strengthen the reliability and safety of the microfinance system as a whole, to achieve the goals of microfinance organizations defined by the Law, and to increase public trust in financial and credit institutions, taking into account the growth rates of assets of microfinance and microcredit companies, in accordance with Articles 7, 31, and 43 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", and Articles 2 and 34 of the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. Approve the following amendments and additions to the regulatory legal acts of the National Bank of the Kyrgyz Republic:

- (ceased to be in force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 9, 2015 No. 76/9)

• in the "Regulation on Licensing, Reorganization, and Liquidation of Microfinance Companies on the Territory of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of January 31, 2007 No. 5/1, registered in the Ministry of Justice on March 5, 2007, registration number 27-07 (attached);

• in the "Interim Rules for Regulating the Activities of Microfinance Companies on the Territory of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of February 19, 2003 No. 4/2, registered in the Ministry of Justice on March 25, 2003, registration number 29-03 (attached).

2. This Resolution shall enter into force upon the expiration of fifteen days from the day of its official publication.

3. 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.

4. The Supervision and Licensing Methodology Department shall bring this Resolution to the attention of microfinance organizations.

5. Control over the implementation of this Resolution shall be entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic, Z.L. Chokoev.

Chairman	Z. Asankozhoeva

	Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic of July 11, 2012 No. 29/5

Amendments and additions to certain regulatory legal acts of the National Bank of the Kyrgyz Republic governing the activities of microfinance organizations

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 9, 2015 No. 76/9)

1. (Ceases to be in force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 9, 2015 No. 76/9)

2. Make the following amendments and additions to the "Regulation on Licensing, Reorganization, and Liquidation of Microfinance Companies on the Territory of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of January 31, 2007 No. 5/1:

1) supplement paragraph 2.6 with new paragraphs of the following content:

"The minimum size of the authorized capital of a newly created MFC is established at not less than 50 million soms.

An MFC applying for a license to accept time deposits from individuals and legal entities must have a minimum authorized capital size of not less than 100 million soms. This requirement also applies to MCCs, MCAs, and credit unions transforming into MFCs.";

2) rephrase paragraph 2 of Appendix 4 as follows:

"2. Goals for creating an MFC, provisions regulating issues of achieving the goal established by Article 2 of the Law of the Kyrgyz Republic 'On Microfinance Organizations in the Kyrgyz Republic'.";

3) supplement paragraph "B" of Section II of Appendix 6 with the following sentence: "Indicate provisions regulating issues of achieving the goal established by Article 2 of the Law of the Kyrgyz Republic 'On Microfinance Organizations in the Kyrgyz Republic'.";

4) in Appendix 7, before the words "legal address of the MFC", add the words: "created for the purpose of providing accessible microfinance services to overcome poverty, increase employment levels, promote the development of entrepreneurship and social mobilization of the population of the Kyrgyz Republic, in accordance with the Law of the Kyrgyz Republic 'On Microfinance Organizations in the Kyrgyz Republic';

5) rephrase the second paragraph of paragraph 3.3 as follows:

"The requirement to deposit the minimum size of the authorized capital into a savings account in a commercial bank does not apply to MCCs, MCAs, and credit unions transforming into MFCs, and having capital in the amount established in paragraph 2.6 of this Regulation for a newly created MFC. If the size of their capital is less than the amount established in paragraph 2.6 of this Regulation for a newly created MFC, then its founders must deposit the missing amount into a savings account in a commercial bank.".

3. Make the following amendments and additions to the "Interim Rules for Regulating the Activities of Microfinance Companies on the Territory of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of February 19, 2003 No. 4/2:

1) in paragraph 2.1, after the words "the same person", add the words "in an amount of no more than three percent of the minimum size of the authorized capital established by the National Bank for a newly created MFC (not accepting time deposits from individuals and legal entities)" and further - according to the text.