Resolution of the Board of the National Bank of the Kyrgyz Republic No. 34/11 of July 31, 2014 on Amendments to the Regulation on Certain Transactions/Operations of Commercial Banks and Microfinance Companies with Real Estate

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

dated July 31, 2014 No. 34/11

On Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Certain Transactions/Operations of Commercial Banks and Microfinance Companies of the Kyrgyz Republic with Real Estate' dated August 29, 2012 No. 36/2"

In accordance with Articles 7 and 43 of the 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. Make the following amendments and additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Certain Transactions/Operations of Commercial Banks and Microfinance Companies of the Kyrgyz Republic with Real Estate' dated August 29, 2012 No. 36/2":

in the Regulation on certain transactions/operations of commercial banks and microfinance companies of the Kyrgyz Republic with real estate, approved by the aforementioned resolution:

• supplement paragraph 35 with the following sentence:

"The acquisition of real estate by a bank for the purpose of leasing is not permitted.";

• rephrase paragraph 37 as follows:

"37. A bank has the right to lease/sublease both standalone unused bank premises and part of the area of unused bank premises isolated from those occupied by the bank and having a separate entrance for the tenant, provided that the conditions of technical reinforcement and other established requirements for the safe operation of non-residential premises are met. Banks must notify the External Supervision Department of the National Bank in writing about each case of leasing/subleasing of unused bank premises and/or replacement of tenants, indicating information about the tenant/subtenant and the lease term.";

• delete paragraph 37-1.

2. This resolution enters into force after the expiration of fifteen days from the date of 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 to bring this resolution to the attention of commercial banks, the State Development Bank of the Kyrgyz Republic, regional departments of the National Bank, and the representative office of the National Bank of the Kyrgyz Republic in the Batken region.

5. Entrust control over the implementation of this resolution to the Deputy Chairman of the National Bank of the Kyrgyz Republic Z.L. Chokoev.

Chairman	T. S. Abdygulov

---